Sales Tax Rates in Hidalgo County for 2024

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Hidalgo County 2024 Sales Tax Overview

Hidalgo County Tax: 0.00%

Texas State Sales Tax: 6.25%

City City Tax Other Taxes Total Sales Tax
Alamo 2.00% 0.00% 8.25%
Alton 2.00% 0.50% 8.25%
Donna 2.00% 0.50% 8.25%
Edcouch 2.00% 0.50% 8.25%
Edinburg 2.00% 0.00% 8.25%
Elsa 1.50% 0.00% 8.25%
Granjeno 1.00% 0.00% 7.25%
Hidalgo 2.00% 0.00% 8.25%
La Joya 2.00% 0.00% 8.25%
La Villa 2.00% 0.00% 8.25%
McAllen 2.00% 0.00% 8.25%
Mercedes 2.00% 0.00% 8.25%
Mission 2.00% 0.00% 8.25%
Palmhurst 1.50% 0.00% 8.25%
Palmview 1.50% 0.00% 8.25%
Penitas 1.50% 0.00% 8.25%
Pharr 2.00% 0.38% 8.25%
Progreso 2.00% 0.00% 8.25%
Progreso Lakes 1.50% 0.00% 7.75%
San Juan 2.00% 0.00% 8.25%
Sullivan City 1.00% 0.00% 8.25%
Weslaco 2.00% 0.00% 8.25%

 

What You Need to Know as a New Business Owner

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Starting a Business?

Registering for Sales Tax in Hidalgo County

To collect sales tax, businesses need to register with the Texas Comptroller’s office. This involves completing the Texas Sales and Use Tax Permit application, which is available online.

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Charging Sales Tax

Staying Compliant with Sales Taxes

In Hidalgo County, the combined sales tax rate ranges from 7.25% to 8.25%, depending on the business's location. This includes Texas' state sales tax of 6.25% plus any additional local taxes. Businesses are required to begin charging sales tax when they have a physical presence or nexus in Texas, which may be established through having a location, employees, or inventory within the state.

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Are There Exceptions?

Registering for Sales Tax in Hidalgo County

In Hidalgo County, most businesses are required to collect sales tax, but certain exemptions apply. For instance, items like prescription medications and some groceries may be exempt. Nonprofit organizations may also qualify for sales tax exemption. WiseWay Partners can assist in determining whether your business qualifies for any exemptions and help you navigate the application process.

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Sales Taxes in Hidalgo County FAQs

How do I file sales tax returns?
Sales tax returns in Hidalgo County must be filed with the Texas Comptroller either monthly, quarterly, or annually, depending on your total sales. Returns can be filed online through the Comptroller's Webfile system.

What happens if I don’t pay sales tax on time?
Failing to file or pay sales taxes on time can lead to penalties, interest charges, and potential legal consequences. It’s important to stay compliant to avoid these issues. For help with filing, consider consulting with a tax professional.

Which items are taxable in Hidalgo County?
Most tangible goods and some services are subject to sales tax in Texas. However, there are exemptions, such as certain food items and medical products. The Texas Comptroller’s guide can help clarify specific taxable and non-taxable items.

Can I pass sales tax on to my customers?
Yes, businesses can pass sales tax onto customers. Sales tax should be clearly displayed as a separate line item on receipts and invoices.

Do I need a sales tax permit if I sell online in Hidalgo County?
Yes, if you sell products or services to customers in Texas, including online sales, you are required to obtain a Texas Sales and Use Tax Permit.

What is a resale certificate, and how does it affect sales tax?
A resale certificate allows businesses to purchase goods tax-free if they intend to resell them. You must provide the certificate to the seller at the time of purchase to avoid paying sales tax.

How do I handle sales tax for out-of-state sales?
When selling to customers outside Texas, you may not need to collect Texas sales tax, but you’ll need to comply with sales tax rules in the customer's state. It’s important to understand the specific tax regulations for each state where you conduct business.