Texas Comptroller Abolished Sales Tax on Medical Records
The state order reverses previous tax interpretations of electronic health record systems and patient portal services.
Updated on Oct. 7, 2026 in Healthcare
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Texas Comptroller Don Huffines has signed an executive order to remove sales tax from medical records and healthcare technology. The decision reverses the classification of these platforms as taxable data processing services.
Why it matters
The Comptroller determined that the state Legislature never intended for essential medical record technology to be taxed. This shift aims to reduce administrative and financial burdens for healthcare providers and facilities across the state.
The Comptroller's order initiates a mandatory 30-day public comment period regarding the proposed amendment to Rule 3.342. This follows a recent policy shift where the office eliminated taxes on marketplace fees.
The players
Don Huffines
Don Huffines is the Texas Comptroller of Public Accounts who oversees the state's tax administration and financial reporting.
Texas Secretary of State
The Texas Secretary of State is the official state agency responsible for managing government filings and the Texas Register.
The details
The executive order covers electronic health record systems, patient portals, and broader healthcare technology infrastructure. By reclassifying these services, the Comptroller's office moves away from a previous policy that treated such software as taxable information or data processing.
Timeline
In September 2026, the Comptroller held a roundtable discussion with doctors and business owners.
On September 29, 2026, the Comptroller ended a separate tax on marketplace fees.
On October 6, 2026, the Comptroller signed the executive order.
Market Landscape
This directive follows a broader trend of revising tax interpretations related to digital services and software in Texas. It positions the state to lower overhead costs for healthcare providers while clarifying tax liabilities for technology vendors.
Healthcare providers in Texas may see a decrease in costs associated with purchasing or maintaining electronic health record systems. Physicians and medical business owners should monitor the Texas Register for the official rule amendment.
The takeaway
This policy change signals a significant reduction in the tax burden for medical technology providers operating within Texas. Stakeholders should track the 30-day comment period to understand the final implementation requirements.
Further reading
Learn more about local regulatory shifts in our Texas Healthcare section.
Source note: This article includes information reported by WTAW | 1620AM & 94.5FM.
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Should government prioritize ending taxes on medical technology and health records to lower healthcare costs?
