Sales Tax on Tickets: What You Need to Know

TX: If you’re selling tickets for an event, concert, or entertainment venue, understanding how sales tax applies is essential. In many states, including Texas, ticket sales may be subject to sales tax depending on the type of event and exemptions available. Here’s a breakdown of what you need to know.

Are Ticket Sales Taxable?

In Texas, sales tax applies to tickets sold for:

• Amusement & Entertainment Events – This includes concerts, sports games, festivals, and theatrical performances.
• Amusement Parks & Attractions – Admission fees for theme parks, zoos, museums, and similar venues are taxable.
• Movie Theaters – Tickets for film screenings are subject to sales tax.
• Other Paid Admissions – Cover charges for clubs, entry fees for escape rooms, and other entertainment venues often fall under taxable admissions.

Exemptions from Sales Tax

Certain ticket sales are exempt from Texas sales tax, including:

• Educational & Nonprofit Events – If an event is hosted by a qualifying nonprofit or educational institution, ticket sales may be tax-exempt.
• Religious Events – Admission fees for religious events or services are generally exempt.
• School-sponsored Events – If a public school sells tickets to a school event, these may be non-taxable.

Who is Responsible for Collecting Sales Tax?

If you sell taxable tickets, you are responsible for:

1. Registering for a Sales Tax Permit – Event organizers must register with the Texas Comptroller’s Office.
2. Charging the Correct Sales Tax Rate – The state sales tax rate is 6.25%, but local jurisdictions can add up to 2%, making the total rate up to 8.25%.
3. Remitting Collected Tax – Businesses must file and pay sales tax to the Texas Comptroller on a monthly, quarterly, or annual basis.

Online & Third-Party Ticket Sales

If you sell tickets through an online platform or third-party service (such as Eventbrite, Ticketmaster, or StubHub), sales tax may be collected on your behalf. However, as the event organizer, you should verify whether:

• The platform handles sales tax collection and remittance.
• You need to account for sales tax separately in your pricing.

Penalties for Non-Compliance

Failure to collect and remit the proper sales tax can lead to:

• Fines & Penalties – Late payments or underreporting can result in financial penalties.
• Audits & Legal Issues – The Texas Comptroller’s Office can audit businesses to ensure compliance.
• Back Taxes & Interest – Unpaid sales tax may accrue interest over time, increasing the total amount owed.

Understanding sales tax on ticket sales can help ensure compliance and avoid unexpected penalties. If you’re organizing an event or selling admission tickets, consult the Texas Comptroller’s Office or one of our sales tax consultants to ensure you follow state regulations.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.