Sales Tax Registration

Texas franchise tax and Texas sales tax are separate obligations. Franchise tax generally depends on the type of entity, its Texas activity, and its revenue calculation. Sales tax depends on whether a business sells, rents, or leases taxable property or sells taxable…

To close a Texas sales tax permit, first confirm that the permit holder has actually stopped doing business as a seller in Texas. Then close the affected location with the Texas Comptroller and return the permit for cancellation. Do not simply stop…

Texas does not issue a separate temporary sales tax permit for event vendors. A vendor selling taxable products at a Texas fair, festival, market, or show generally uses a regular Texas Sales and Use Tax Permit instead. This applies even if the…

In Texas, shipping and delivery charges generally follow the tax treatment of the underlying sale. If a delivery or shipping charge is connected with a taxable item or taxable service, the charge is taxable even when it appears as a separate line…

Texas allows an eligible remote seller to elect a single local use tax rate instead of determining local use tax from each Texas delivery destination. This option is limited to out-of-state sellers whose only Texas activity is remote solicitation of sales. It…

To verify a Texas sales tax permit number, use the Texas Comptroller’s Taxpayer Search. The statewide online tool checks the status of Texas Sales and Use Tax permits and identifies a permit as active or inactive. You can search with an eligible…

Texas uses a $500,000 economic nexus benchmark to determine when many remote sellers must register to collect Texas sales and use tax. The Comptroller describes the safe harbor as applying when a remote seller’s Texas revenue is less than $500,000 during the…

Texas sales tax by city starts with a 6.25% state rate. Applicable local jurisdictions may add up to 2%, making 8.25% the highest possible combined rate. The local portion can include more than a city tax, so a city name by itself…

Businesses can apply for a Texas sales and use tax permit online through the Texas Comptroller of Public Accounts’ secure eSystems portal. A new applicant begins on the Texas Online Tax Registration Application page and selects “Apply for Permit via eSystems.” Before…