Sales Tax on Artwork: A Guide for Texas Muralists

Taxes are a complicated thing, and something you don’t want to get wrong. Artists and other small business owners often think they won’t ever be audited, but that’s not always the case! In fact, I was always one of those people until a fun little letter arrived in the mail. 🫠 I learned a ton in the process though, so in honor of the upcoming tax season, I’m sharing everything I learned about sales tax on artwork in Texas. If you currently create art for sale, you’ll definitely want to read this post! 

What I Learned About Sales Tax on Artwork from Being Audited

Unfortunately, tax law is not something we are taught in school, the rules are super confusing, and no one really talks about it openly so we’re all often in the dark. When I was audited, even the comptroller agreed that it all gets very confusing! 

The area where it gets especially tricky though is with sales tax. Do you charge it or do you not? And if so, when? Comptrollers like to stroll artist markets to see if artists selling their work there are charging sales tax. So this is definitely something I recommend wrapping your head around so you’re prepared if that ever happens to you!  

As muralists, we are in a particularly grey area for taxes. Are we considered graphic designers? Painters? It’s very vague! Texas state tax law doesn’t actually have a category for us.  

When to Charge Sales Tax on Mural Art in Texas

I’m ultimately glad (sort of! haha) that I had to go through this process, because now I know exactly when I need to charge sales tax as a muralist in Texas. 

Do charge sales tax if: 

• The mural project is for a commercial or non-residential remodel 
• You charge a licensing fee – the licensing fee requires sales tax 
• You are sending out a custom order and charging shipping – the shipping that you charge also requires sales tax 

Do not charge sales tax if:

• The mural project is for a residential project 
• The mural project is for an apartment complex
• The mural project is for a commercial or non-residential space undergoing new construction (from the ground up) 
  

Since in Texas, painting art on a wall is considered tangible, it therefore requires sales tax for the most part. However as you can see, there are a lot of exceptions!

Artist Mentor

Turning your art into a thriving business is not easy, especially when you’re trying to do it alone. I’m a big believer in collaboration and mentorship, which is why I love sharing tips like this one with my community! If you’re looking for artist mentorship in any capacity, I’d love to help 🙂