Texas Comptroller Abolished Health Tech Sales Taxes
The executive order removes tax requirements for patient portals and electronic health record systems.
Updated on Oct. 7, 2026 in Healthcare
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Texas Comptroller Don Huffines signed an executive order to abolish sales taxes on healthcare technology systems. The measure specifically exempts electronic health records, electronic medical records, and patient portals from taxation.
Why it matters
The Comptroller stated that these essential technologies were unfairly taxed under previous rules that were not authorized in the law. This move aims to correct what the agency identified as an improper application of sales tax.
The order ends a tax policy that has been in place since 1987 when the Texas Legislature first applied sales tax to data processing services. Affected systems include patient portals and all electronic medical record software.
The players
Don Huffines
He is the Texas Comptroller who took office in August 2026 after winning the Republican nomination.
Texas Secretary of State
This state agency is responsible for receiving the proposed amendment to the tax code.
The details
The Comptroller has directed the agency to file a proposed amendment with the Texas Secretary of State to formalize the exemption. This amendment will enter a 30-day public comment period for Texans to provide feedback to the office.
Timeline
The Texas Legislature implemented the initial tax on data processing services in 1987.
Don Huffines officially assumed the role of Comptroller in August 2026.
The Comptroller signed the executive order on October 6, 2026.
Market Landscape
This policy change deviates from the state's long-standing application of the 1987 Texas sales tax on data processing services. By exempting healthcare systems, the state shifts its regulatory stance on how modern medical data platforms are categorized for taxation.
Healthcare providers and medical facilities in Texas may see reduced operational costs due to the removal of sales tax on their record-keeping software. Patients may eventually benefit if these savings are passed down through lower administrative overhead.
The takeaway
This executive order highlights a significant shift in how the state treats digital infrastructure within the healthcare sector. Residents and industry stakeholders should monitor the Texas Register for updates during the upcoming public comment window.
Further reading
For more context on how state policies impact medical providers, visit Texas Healthcare.
Live Poll
Do you support eliminating state sales taxes on electronic medical record systems and patient portals?
