Sales Tax Exposure in Fort Worth, Texas

What is Sales Tax Exposure in Fort Worth?

Sales tax exposure occurs when businesses fail to comply with Fort Worth’s sales tax rules. This can involve applying incorrect rates, missing local district taxes, or misapplying nexus rules. Businesses in Fort Worth may face unexpected liabilities, penalties, and audits due to sales tax exposure.

Understanding Sales Tax Nexus in Fort Worth

• Physical Nexus: Businesses with a physical presence in Fort Worth, such as an office, employees, or inventory, are required to collect sales tax on transactions within the city.
• Economic Nexus: Fort Worth, like the rest of Texas, has economic nexus laws. Businesses making over $500,000 in sales in Texas may be required to collect and remit sales tax, regardless of a physical presence.

Special Tax Districts in Fort Worth

Fort Worth is home to special purpose districts that can add additional sales taxes. These may include:

• Transit authorities
• Municipal utility districts
• Development districts

Each of these districts has its own tax rate, and businesses may be required to apply different rates based on their physical location within the city.

Fort Worth has several special purpose districts that affect your sales tax rate. Get more details on our Special Tax Districts page.

Sales Tax Rates in Fort Worth

• Texas State Sales Tax: 6.25%
• Fort Worth City Sales Tax: 2.00%
• Combined Sales Tax Rate: In many areas of Fort Worth, the combined rate can reach 8.25%.

It is important for businesses to calculate the correct tax rate based on the specific location of the transaction in Fort Worth. Businesses should not assume a single rate applies throughout the city.

Use Tax Exposure in Fort Worth

Use tax applies when businesses purchase goods from out-of-state vendors who do not collect Texas sales tax. In Fort Worth, businesses may incur use tax exposure when:

• They buy equipment, machinery, or inventory from out-of-state vendors.
• They use software and digital tools that are purchased from outside Texas.
• Transactions occur across city or county lines without sales tax collection.

If you buy out-of-state goods, you may face use tax exposure in Fort Worth. Read about it on our Use Tax page.

Common Sales Tax Mistakes in Fort Worth

Businesses in Fort Worth often make these mistakes that can lead to sales tax exposure:

• Relying on ZIP codes rather than jurisdiction boundaries to calculate taxes.
• Misapplying nexus rules, assuming no nexus because the business does not have a physical location in Fort Worth.
• Ignoring special purpose districts, leading to underpayment of sales tax.
• Misapplying origin vs. destination sourcing rules.

These mistakes can result in unexpected tax liabilities and audits.

How Sales Tax Exposure Builds Over Time in Fort Worth

Sales tax exposure in Fort Worth typically doesn’t come from a single large mistake, but from a series of small errors over time. These errors build gradually through inaccurate tax rate applications, missed special districts, and delayed use tax reporting.

Common drivers of exposure include:

• Incorrect rate application.
• Missed special district taxes.
• Delays in tax registration.
• Incomplete use tax reporting.

Related Resources

• Learn more about sales tax exposure in Dallas, Arlington, and McKinney.
• For more on special tax districts in Fort Worth, visit the Special Tax Districts page.
• Want to know your sales tax exposure? Use our Sales Tax Exposure Calculator.