# Texas aircraft tax

> Texas charges state and local sales tax on aircraft, up to 8.25 percent combined. Aircraft bought or rented for FAA-approved flight instruction are exempt, other rentals are taxed, and separately stated repair labor is not.

Source: https://www.aerscheduler.com/aircraft-tax/united-states/texas
Checked: 2026-10-18

## Do you pay sales tax on an aircraft bought in Texas?

**Taxed.** State sales tax plus local tax of up to 2 percent, to a maximum combined 8.25 percent, usually at the rate where the seller does business.

> "Local sales and use tax rates vary throughout the state, up to 2 percent."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

> "The maximum combined tax rate is 8.25 percent."
>
> Texas Comptroller, [Publication 94-168, Aircraft and Texas Sales and Use Tax](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

> "In most cases, the total tax paid is based on the rate in effect at the seller's place of business."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## Do you owe use tax on an aircraft bought outside Texas?

**Depends.** Use tax applies to an aircraft bought elsewhere and used in Texas, with credit for sales tax paid to the out-of-state seller. It does not apply if the aircraft is predominantly used outside Texas, meaning more than half its departures, for at least one year.

> "is not subject to Texas sales and use tax if it is predominantly used outside of this state for at least one year."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

> "more than 50 percent of its departures are made from locations outside Texas."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## What aircraft sales tax exemptions does Texas have?

**Depends.** Fly-away: no tax if the aircraft is predominantly used outside Texas in its first year, documented on the Comptroller's fly-away form signed by buyer and seller. Aircraft bought for flight instruction are exempt, and so are aircraft bought by FAA-certificated carriers.

> "can be used in Texas within the first year, as long as it is predominantly used outside of Texas for that first year."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## Are aircraft rentals taxed in Texas?

**Taxed.** Rentals and leases are taxable, except an aircraft rented for FAA-approved flight instruction.

> "Sales and use tax is due on the sale, lease or rental of an aircraft."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## Is flight instruction taxed in Texas?

**Exempt.** No tax on the sale, lease or rental of an aircraft bought for flight instruction. A student cannot buy an aircraft tax free, but can rent one by the hour tax free for FAA-approved instruction, including solo flights, with the Comptroller's exemption form. The school or instructor needs a sales tax permit.

> "Tax is not due on the sale, lease or rental of an aircraft bought for flight instruction."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## Are aircraft parts and maintenance labor taxed in Texas?

**Depends.** Separately stated parts and materials are taxable; separately stated labor is not. On a lump-sum repair bill the shop pays tax on its materials and the customer pays none.

> "Sales tax is due on separately stated charges for materials and parts when you have your aircraft serviced."
>
> Texas Comptroller, [Publication 94-168](https://comptroller.texas.gov/taxes/publications/94-168.php), dated Revised 01/2020. Checked 2026-10-18.

## Does Texas register or tax aircraft every year?

**Not clearly published.** The Comptroller's aircraft publication does not cover registration or property tax. Not clearly published there.

_Not tax advice. Confirm with the state's revenue department or a CPA before a purchase or a pricing decision._