Texas Sales Tax Nexus Rules for Out-of-State Sellers in 2026

Key Takeaways

• Texas economic nexus generally starts when an out-of-state seller exceeds $500,000 in total Texas revenue over the prior 12 months.
• Once you have nexus, you typically must register for a Texas Sales and Use Tax Permit with the Texas Comptroller of Public Accounts and begin collecting Texas sales tax.
• Texas is origin-based for in-state sellers, but remote sellers with economic nexus generally use destination-based local rates for Texas deliveries.
• Texas state sales tax is 6.25%, with local taxes that can raise the combined rate up to 8.25% in many locations.

Texas sales tax nexus rules matter for any out-of-state business selling into Texas in 2026. This guide focuses on economic nexus for remote sellers, including when you must register, what rates to charge, and what Texas expects on filing and records.

1) When does an out-of-state seller have Texas economic nexus in 2026?

In Texas, an out-of-state seller generally establishes economic nexus when it exceeds $500,000 in total revenue from Texas sales during the preceding 12 months. This threshold is based on revenue (not transaction count) and is measured on a rolling basis.

What counts toward the $500,000 Texas threshold?

For Texas economic nexus, the measurement is broad: it looks at gross receipts from sales into Texas, which can include taxable sales and certain nontaxable sales shipped or delivered to Texas customers. If you sell through your own website, marketplaces, B2B channels, or invoices to Texas delivery locations, those receipts can contribute to the threshold.

Texas-specific quirk: remote sellers and local taxes

Texas has a Texas-specific approach that often differs from how other states phrase local tax sourcing: while Texas is commonly described as origin-based for many in-state sellers, remote sellers with Texas economic nexus generally apply destination-based local tax based on where the item is delivered in Texas. That means the Texas delivery address drives the combined rate you charge in many remote-seller situations.

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2) Do you need a Texas Sales and Use Tax Permit before collecting tax?

Yes. If you have Texas nexus (including economic nexus), you generally need to register for a Texas Sales and Use Tax Permit with the Texas Comptroller of Public Accounts before you begin collecting Texas sales tax from customers.

Where do you register in Texas (portal/system name)?

Texas registration and ongoing account management are commonly handled through the eSystems services maintained by the Texas Comptroller of Public Accounts. Many sellers also use the Comptroller’s online services to manage filings and payments after they receive their permit.

Texas-specific form and identification details you should expect

• Texas Sales and Use Tax Permit: this is the permit out-of-state sellers generally need to collect Texas sales tax.
• Texas Sales and Use Tax Return (Form 01-114): the standard return used to report and remit Texas sales and use tax.

What if you sell through a marketplace?

If a marketplace is the “marketplace provider” responsible for collecting and remitting Texas tax on marketplace sales, that can change what you personally need to collect on those transactions. However, your Texas receipts can still matter for understanding your footprint and registration needs for non-marketplace channels (like direct-to-consumer or B2B invoicing) tied to Texas deliveries.

3) What Texas sales tax rate should remote sellers charge (state + local)?

Texas has a 6.25% state sales and use tax rate. Local taxing jurisdictions (cities, counties, transit authorities, and special purpose districts) can add local taxes, often bringing many locations to a combined 8.25% total rate.

How combined rates work for shipments into Texas

For many remote-seller transactions delivered to Texas addresses, you typically calculate tax based on the destination in Texas. That means you should confirm the combined rate (state + applicable local) for the delivery location and charge that rate at checkout or on the invoice.

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Texas sales tax snapshot (rates, cities, and counties)

Registration, filing frequency, and due dates in Texas (what new remote sellers should plan for)

What you’ll typically do after crossing the $500,000 threshold

1. Register for a Texas Sales and Use Tax Permit with the Texas Comptroller of Public Accounts (commonly via eSystems).
2. Configure your tax settings to charge Texas state + applicable local tax for Texas deliveries.
3. Track exempt sales separately and retain exemption documentation when a buyer claims Texas exemption.
4. File and pay using the Texas Sales and Use Tax Return (Form 01-114) based on the filing schedule assigned to your account.

Common Texas filing cadence for newer sellers

Texas assigns filing frequency based on your expected tax liability. Many new remote sellers are placed on quarterly filing, while higher-volume sellers may be assigned monthly. Your permit confirmation and account settings in the Comptroller’s systems typically indicate your assigned filing schedule.

Texas due dates (planning rule)

Texas sales tax returns are commonly due on the 20th day of the month following the end of the reporting period. For example, a quarterly filer covering January–March typically plans around an April due date tied to the 20th.

Texas-specific compliance details that trip up out-of-state sellers

Destination local tax for remote sellers (don’t default to one statewide rate)

A frequent Texas issue for first-time remote sellers is charging only 6.25% everywhere. In Texas, local tax can apply based on the delivery location, and many major Texas cities are 8.25% combined. If your checkout doesn’t calculate destination local tax correctly for Texas addresses, you can under-collect.

Keep Texas exemption documentation organized

If you make exempt sales into Texas (common in B2B), keep the buyer’s exemption documentation tied to the invoice and the Texas ship-to address. When you file Form 01-114, you should be able to reconcile taxable vs. exempt Texas receipts with clean records.

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FAQ: Texas sales tax nexus for out-of-state sellers (2026)

If I’m new to selling online, what’s the Texas economic nexus threshold I should watch?

For Texas in 2026, the key number is generally $500,000 in total Texas revenue in the preceding 12 months; once you exceed it, you’re typically expected to register with the Texas Comptroller of Public Accounts and start collecting Texas tax.

Do I need a Texas Sales and Use Tax Permit even if I don’t have a warehouse in Texas?

Yes—Texas economic nexus can require registration even without Texas property or employees. If you exceed the $500,000 Texas revenue threshold, you generally register for the Texas Sales and Use Tax Permit and file using Form 01-114.

What is the Texas state sales tax rate, and is local tax really that important?

Texas state sales tax is 6.25%, and local tax is crucial because many destinations (including Houston, Dallas, San Antonio, Austin, and Fort Worth) are commonly 8.25% combined. Remote sellers with Texas economic nexus often need destination-based local rates for Texas deliveries.

Where do I register to collect Texas sales tax (what system name should I look for)?

Texas sellers commonly register and manage accounts through the Comptroller’s eSystems services. Your permit account is administered by the Texas Comptroller of Public Accounts, not a separate “Department of Revenue.”

Which Texas form do I file to report sales tax?

The standard Texas sales tax return is the Texas Sales and Use Tax Return (Form 01-114), filed with the Texas Comptroller of Public Accounts based on your assigned filing frequency.

When are Texas sales tax returns due?

Texas sales tax returns are commonly due on the 20th day of the month following the reporting period. If you’re filing Texas quarterly, you’ll plan around an “after quarter end” due date tied to the 20th, using Form 01-114.

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