Texas Comptroller Moves to End Sales Tax on Electronic Medical Records and Related Technology
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On October 6, 2026, Texas Comptroller Don Huffines signed an executive order directing his office to stop applying Texas sales tax on electronic medical records and the technology that doctors and patients use to access them. Under the prior interpretation, electronic health record and electronic medical record systems, patient portals, and similar healthcare technology used to maintain, access, or share medical records, had been treated as taxable information services or data processing services.
What the proposed Rule 3.342 amendment would do
The executive order directs the agency to publish a proposed amendment to Rule 3.342 clarifying that these charges are neither taxable information services nor taxable data processing services. The change is not yet final. The proposed amendment will be filed with the Texas Secretary of State and published in the Texas Register, opening a 30-day public comment period before the rule can take effect.
Part of the Taxpayer First Project
The comptroller framed the move as part of his broader Taxpayer First Project, following a change last week that ended sales tax on certain marketplace fees, and signaled that his office will continue to review how the Texas information services and data processing taxes are applied.
What Healthcare Providers and Technology Vendors Should Do Next
If your business provides or purchases electronic medical record systems, patient portals, or related healthcare technology in Texas, our state and local tax team can help you assess the impact and track the rulemaking. Please reach out to Troy Bluske at tbluske@kbfadvisory.com or Tracey Stewart at tstewart@kbfadvisory.com for additional information.