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Texas sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Texas Comptroller — everything a remote seller needs to know about Texas, on one page.

Economic nexus threshold
$500,000
Statewide base rate
6.25%
Transaction threshold
None
HoustonDallasSan AntonioAustinFort Worth
Texas · major filing jurisdictions
Nexus · Texas

When you owe sales tax in Texas.

Either physical presence or crossing the economic threshold creates an obligation to register, collect, and remit. Texas uses a sales-only test — there is no transaction-count requirement.

Economic nexus
Threshold
$500,000 in gross revenue from sales of tangible personal property and taxable services delivered into Texas
Measurement type
Sales only — transaction count does not matter
Measurement period
Preceding 12 months (rolling)
Included
Gross revenue from taxable, nontaxable, and tax-exempt sales of tangible personal property and services into Texas — marketplace-facilitated sales are included in the $500,000 calculation
Marketplaces
Marketplace sales count toward your threshold — sales facilitated by Amazon, Walmart Marketplace, or other registered marketplace facilitators are included in the $500,000 calculation per the April 1, 2020 amendment to the rule
Physical nexus
Office or place of businessEmployees / remote staffWarehouse · 3PL · FBAIndependent or dependent agentsConstruction projects

Any physical presence in Texas — including inventory stored in a Texas fulfillment center — creates nexus from the first sale, regardless of revenue volume. A remote employee working from a Texas address is one of the most common overlooked triggers.

Rates · Texas

What you'll collect, city by city.

The Texas state rate is 6.25%. Cities, counties, transit authorities, and special-purpose districts can add up to 2% in local taxes, for a combined maximum of 8.25%. All five major metros reach that cap.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
TexasStatewide base rate6.25%6.25%6.25%6.25%0%
Houston8.25%8.25%8.25%8.25%0%
Dallas8.25%8.25%8.25%8.25%0%
San Antonio8.25%8.25%8.25%8.25%0%
Austin8.25%8.25%8.25%8.25%0%
Fort Worth8.25%8.25%8.25%8.25%0%

Most general services (consulting, legal, design) are not taxable in Texas — the 0% reflects that exemption. Tangible goods, digital goods, and SaaS (classified as data processing services) are all taxable. Note: 20% of data processing / SaaS charges is statutorily exempt, meaning the effective taxable portion is 80% of the charge; the rate cells above reflect the full combined rate applied to the taxable 80%. Rates verified as of June 11, 2026.

Need the exact rate for one address or invoice? Our calculator returns the combined state, county, and local rate.

Open the sales tax calculator
Taxability · Texas

Is your product taxable here?

Texas is one of the few states that taxes SaaS and digital goods — but exempts most professional services. The rules can catch software sellers off guard.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered to a Texas address are taxable at the combined rate for that delivery location.
SaaS & cloud softwareTaxableThe Texas Comptroller classifies SaaS and application service providers as data processing services, which are taxable. However, 20% of the charge is statutorily exempt — so only 80% of the invoice amount is subject to tax.
Digital goodsTaxableElectronically delivered products such as downloaded software, e-books, and digital media are taxable in Texas as tangible personal property or data services, depending on the delivery method.
Professional servicesNot taxableConsulting, legal, accounting, design, and similar professional services are generally exempt in Texas — unless they are part of a taxable data processing or information service.
Information servicesTaxableProviding access to general or specialized data, news feeds, or research databases is a taxable information service in Texas. Like data processing, 20% of the charge is exempt — you collect tax on the remaining 80%.
Bundled hardware + softwarePartialWhen hardware and software are sold together, the hardware is taxable at the full rate; separately-stated prewritten software downloaded electronically may be treated differently. Itemize your invoices.
Filings · Texas

Filing schedules and due dates.

The Texas Comptroller assigns your filing frequency at registration based on the amount of tax you expect to collect. Returns are due even for periods with zero taxable sales.

FrequencyReturnDue dateWho it applies to
MonthlyMost common for larger sellersAssigned by the Comptroller at registration20th of the month following the reporting periodSellers whose monthly tax liability meets the Comptroller's threshold for monthly filing
QuarterlyMost commonAssigned by the Comptroller at registration20th of the month following the end of the quarterThe default assignment for most remote sellers with moderate tax liability
AnnualAssigned by the Comptroller at registrationJanuary 20 for the prior calendar yearSmall sellers with low annual tax liability, as assigned by the Comptroller

Crossed the threshold, or about to?

A Commenda expert will review your Texas exposure, register you with the Texas Comptroller of Public Accounts, and take over the filing calendar — usually within a week.

The state authority

Texas Comptroller of Public Accounts.

The Texas Comptroller of Public Accounts administers all state sales and use tax. Registration, filing, payment, and rate lookups all run through the Comptroller's online portal — one account covers everything.

comptroller.texas.gov

Registration through the Comptroller portal requires a Tax Portal username and password. You will also need your Webfile Number once assigned — the portal issues it after registration and it is required for online filing.

What you can do there
  • Register for a sales tax permit

    Free of charge through the Comptroller portal. Out-of-state sellers register using the online application with their business entity details.

  • File returns and pay

    All returns and payments are submitted through the Comptroller's Webfile system using your assigned Webfile Number.

  • Look up the rate for any address

    The Comptroller's sales tax rate locator returns the combined state and local rate for any Texas address.

  • Verify a resale certificate

    Confirm that a buyer's Texas taxpayer number is valid before accepting a Form 01-339 resale certificate.

Exposure & exemptions · Texas

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Texas offers a Voluntary Disclosure Agreement program for out-of-state sellers who come forward before the Comptroller's office contacts them.

Lookback
4 years under a VDA — the Comptroller limits review to reports due within 4 years of the initial contact date
Collected but not remitted
No lookback limit — if tax was collected and not remitted, the full period is reviewable regardless of the VDA
Penalties
Waived under the program for taxes not previously collected
FastTrack VDA
Streamlined option available via Form 89-308 for sellers who qualify under the Comptroller's fast-track criteria

Exemption certificates accepted

Collect a valid certificate at the time of sale and retain it for four years — the burden of proof rests with the seller.

Resale
Form 01-339, Texas Sales and Use Tax Resale Certificate / Exemption Certification
Multi-state
MTC Uniform Sales and Use Tax Certificate accepted; Texas is not a Streamlined Sales Tax member state
Agricultural / timber
Qualifying agricultural and timber operations must register with the Comptroller to receive an ag/timber exemption number before purchases are exempt
Nonprofit / exempt organizations
Qualifying nonprofits and religious organizations must apply to the Comptroller for an exemption; a federal 501(c) determination alone is not sufficient

FAQ · Texas

Texas questions, answered.

The questions remote sellers ask us most about Texas sales tax.
Read our FAQ library

Yes. The Texas Comptroller classifies SaaS and application service providers as data processing services, which are subject to sales tax. One important detail: 20% of the charge for data processing services is statutorily exempt, so you collect tax on only 80% of the invoice amount. The applicable rate is the combined state and local rate at the customer's address — up to 8.25%.

No. Texas uses a sales-only threshold: $500,000 in gross revenue from sales delivered into the state in the preceding 12 months. There is no 200-transaction test. If your Texas revenue stays below $500,000 and you have no physical presence, you do not have nexus.

Yes. As of April 1, 2020, marketplace-facilitated sales are included in your $500,000 calculation — even when the marketplace (Amazon, Walmart, etc.) collects and remits the tax on those transactions. If the marketplace handles the tax, you may not owe tax on those specific sales, but the revenue still counts toward your threshold.

Yes. Electronically delivered software, digital products, and downloaded content are taxable in Texas. The Comptroller treats downloaded software as tangible personal property and cloud-delivered services as data processing, both of which are subject to the combined state and local rate.

The Texas rule requires registration starting on the first day of the fourth month after the month in which you exceeded $500,000 in Texas sales over the preceding 12 months. For example, if you cross the threshold in March, you must be registered and collecting by July 1.

Yes. Once you register, the Texas Comptroller assigns a Webfile Number to your account. This number is required to file returns and make payments through the Comptroller's online Webfile system. Keep it secure — it is your identifier for all filing activity.

Yes. Commenda monitors your Texas sales exposure, registers you with the Texas Comptroller of Public Accounts, calculates the correct rate on every transaction, and files each return on the assigned schedule. Book a call to see it applied to your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.