Are you thinking of starting a business in the Lone Star State? Whether you’re selling handmade crafts online, launching a food truck, or opening a boutique, one essential step is securing your Texas sales tax permit.

This permit allows you to legally collect sales tax on taxable goods and services and ensures you’re in compliance with state regulations.

In this guide, we’ll walk you through exactly how to register for this permit, what documents you’ll need, and how to avoid common mistakes along the way. Let’s make the process simple so you can get back to building your business.

What is a Sales Tax Permit in Texas?

A sales tax permit in the state of Texas is an official authorization issued by the Texas Comptroller of Public Accounts that allows businesses to collect sales tax from customers on taxable goods and services. 

This permit is legally required for anyone selling, leasing, or renting tangible personal property or providing taxable services within the state.

Texas imposes a 6.25% state sales and use tax on most retail sales, leases, and rentals. In addition, local taxing jurisdictions (such as cities, counties, special districts, and transit authorities) can levy up to 2% more, bringing the maximum combined rate to 8.25%.

Obtaining a sales tax registration in Texas is not just a formality. It’s a legal obligation that ensures your business complies with state tax laws. Without it, you cannot legally collect sales tax, which can result in steep penalties and legal consequences.

It’s also important to note that, due to economic sales tax nexus laws, remote sellers (out-of-state businesses that sell to Texas customers) may also need to complete registration if their total revenue exceeds the required sales tax threshold.

So, whether you’re operating a storefront in Austin or shipping products from across the country, securing a sales tax permit in Texas is essential to remain compliant and protect your business from unnecessary risk. 

Do You Need to Register for a Sales Tax Permit in Texas?

Not every business needs to collect sales tax, but many do. Whether you’re operating locally or selling to customers in Texas from out of state, it’s important to understand if you’re required to complete the registration. 

You likely need a permit if you are:

  • An in-state seller with a physical storefront, office, warehouse, or inventory in Texas
  • A remote seller with no physical presence in Texas, but who meets the state’s economic nexus threshold (more than $500,000 in sales annually)
  • A marketplace facilitator (e.g., Amazon, Etsy) that handles sales, payments, and delivery for third-party sellers in Texas
  • A business leasing or renting taxable tangible personal property in Texas
  • A service provider offering taxable services such as telecommunications, amusement services, or certain types of labor

Texas recognizes both economic nexus and physical presence as triggers for remote seller sales tax registration in Texas. That means even if you’re operating from another state, you may still be legally obligated to register if your sales into Texas exceed the threshold.

For official guidance and up-to-date requirements, visit the Texas Comptroller’s Sales Tax Permit page.

Step-by-Step: How to Get a Sales Tax Permit in Texas?

Wondering how to get a sales tax permit in Texas? The process is fairly straightforward, and this step-by-step guide will walk you through everything you need to do to get registered.

Step 1: Gather Required Information

Before starting your application, make sure you have the following details on hand:

  • Legal business name or Doing Business As (DBA)
  • Federal Employer Identification Number (FEIN) or Social Security Number
  • Business address and contact information
  • Projected monthly sales and taxable sales in Texas
  • Type of products or services you sell
  • North American Industry Classification System (NAICS) code for your business
  • Responsible party information (owners, officers, or partners)

Step 2: Go to the Texas Comptroller eSystems Portal

Visit the official Texas Comptroller eSystems portal to begin the online registration process. On the given page, click “Apply for Permit via eSystems.” It will prompt you to a page. 

Step 3. Create a New Profile or Log In

On the opened page, enter your user ID and password to log in. If you don’t already have a user ID for the portal, you’ll need to create a profile to access the online application system.

Step 4: Complete the Texas Online Sales Tax Permit Application

Fill out the application form with accurate business and tax information. The online form will guide you through multiple sections, including business structure, ownership, and taxable activities.

Step 5: Submit the Application

Review your entries and submit the completed application online. Double-check all the details to avoid processing delays.

Step 6: Pay the Required Fees (if applicable)

There is typically no fee for a standard physical nexus and sales tax permit. However, certain business types or special tax classifications might involve additional steps or deposits.

Step 7: Receive Your Sales Tax Permit

Once approved, you’ll receive your Texas sales tax permit by mail or electronically. Processing can take 2-3 weeks. Be sure to display your permit prominently at your place of business (if applicable).

What Information Do You Need to Register?

Before you dive into the application, you must make sure that you have the required information ready to make the process smooth and hassle-free. Gathering everything in advance will save time and help you avoid errors that could delay approval.

Business Information

You’ll need to provide basic details about your business, including:

  • Legal business name and any DBA names
  • Business type (LLC, sole proprietorship, partnership, corporation, etc.)
  • Physical business location and mailing address
  • Primary business activities and products or services sold

Federal Employer Identification Number (EIN) or Social Security Number (SSN)

Most businesses need an EIN from the Internal Revenue Service (IRS). If you’re a sole proprietor without employees, your Social Security Number (SSN) may be accepted.

The North American Industry Classification System Code

The NAICS code describes your business’s primary industry. You can look this up ahead of time at census.gov/naics.

Responsible Party Details

Be ready to list the name, address, SSN, and title of each owner, partner, or corporate officer. These are the people legally responsible for the business’s tax compliance.

Sales & Tax Projections

You may also need to estimate:

  • Monthly gross sales
  • Monthly taxable sales in Texas

This helps the state determine your filing frequency.

Contact Information

Include your business phone number, email address, and any alternate contacts for tax correspondence.

How Much Does It Cost to Register for a Sales Tax Permit in Texas?

The permit itself is free of charge, though in some cases, you may be asked to provide a security bond. For details about bond requirements, it’s best to reach out to your local Texas Comptroller field office.

Moreover, once issued, your Texas sales tax permit does not need to be renewed annually, either, and there are no recurring maintenance fees. However, you are expected to keep your account active by filing tax returns on time, even if you had no sales for the reporting period.

How Long Does It Take to Get Approved?

After submitting your application for a Texas sales tax permit, the typical processing time is 2 to 3 weeks. This timeframe applies whether you apply online or by mail. The Texas Comptroller’s office processes applications in the order they are received, and the duration can vary based on the volume of applications and the completeness of your submission.

Commenda’s Expert Advice: After submission, you’ll receive confirmation and further communication via email. Be sure to check your inbox regularly, and don’t forget to look in your spam or junk folders in case messages are filtered there.

Common Mistakes to Avoid When Registering

Even though applying for a Texas sales tax permit is a relatively straightforward process, simple errors can cause delays, rejections, or compliance headaches down the line. 

Here are the most common mistakes to avoid:

  • Choosing the Wrong Business Type: Misclassifying your business entity (e.g., selecting sole proprietorship instead of LLC) can affect your tax responsibilities and legal protections.
  • Skipping Marketplace Facilitator Obligations: If you sell through platforms like Amazon, Etsy, or Walmart Marketplace, you still may need to register, even if the platform collects tax on your behalf. Failing to clarify this can lead to compliance gaps.
  • Using an Incorrect or Outdated Mailing Address: Important notices, including your sales tax permit, may be mailed to you. A wrong address can result in missed deadlines or penalties.
  • Forgetting to Include All Responsible Parties: Leaving out owners, partners, or corporate officers during registration can trigger delays or even a denial.
  • Underestimating Projected Sales: While estimates aren’t binding, unrealistic projections can result in the wrong filing frequency or raise red flags.

What Happens After You Register?

Once your Texas sales tax permit is approved, you’re officially authorized to collect sales tax, but that’s just the beginning. Here’s what happens next and how to stay compliant with Texas tax laws:

You’ll Receive Your Sales Tax Permit

The permit is typically sent by mail or email, depending on how you applied. Keep a copy on file and display it at your business location if required.

Set Up Your Online Account

You’ll get login credentials to access the Texas Comptroller’s eSystems portal, where you’ll manage your account, file returns, and make payments. Be sure to save your User ID and password in a secure place.

Know Your Filing Frequency

The state assigns a filing schedule, monthly, quarterly, or annually, based on your projected sales volume. You’ll need to file a return by the due date for each reporting period, even if you had no taxable sales (this is called a zero return).

Start Collecting and Remitting Sales Tax

Once you’re registered, you must begin collecting the appropriate local and state tax remittance from customers at the point of sale and remit those taxes to the Texas Comptroller.

Stay Compliant to Avoid Penalties

File on time to avoid interest and late fees. Update your account if you change your business name, address, or structure. Cancel your permit if you close your business or no longer have a sales tax obligation in Texas

Staying on top of your sales tax obligations will keep your business in good standing and help you avoid costly penalties.

Special Considerations for Out-of-State or Remote Sellers

If you’re an ecommerce business or operate outside of Texas but sell to customers within the state, you can’t ignore sales tax laws. Texas has specific rules that apply to remote sellers, and staying compliant means understanding your obligations under both marketplace facilitator laws and economic nexus thresholds.

Do You Qualify for Remote Seller Sales Tax Registration in Texas?

You must complete remote seller sales tax registration in Texas if:

  • You make over $500,000 in total Texas revenue from taxable and exempt sales in the previous 12 months, even without a physical presence in the state.
  • You use third-party platforms (like Amazon, Etsy, or Walmart) to facilitate sales, but also sell directly to Texas customers via your own site.

This is part of the economic nexus standard, which was established after the Supreme Court’s South Dakota v. Wayfair decision.

Marketplace Facilitator Rules

If you only sell through marketplaces that collect and remit tax on your behalf, you may not need a sales tax permit for those transactions. However:

  • You do still need a permit if you make any direct sales to Texas buyers.
  • You may be required to report exempt marketplace sales, depending on your filing frequency.

These out-of-state sales tax rules in Texas are enforced to ensure fair taxation across in-state and remote sellers.

Resources & Where to Register

For all official information and resources, head straight to the Texas Comptroller of Public Accounts. Here’s where you can find everything you need to complete your Texas sales tax permit registration and stay compliant:

Official Texas Comptroller Website

Helpful Forms & Guides

Customer Support & Contact Information

Make sure to visit these links and keep them handy for reference throughout your registration process and ongoing sales tax filing.

Simplify Sales Tax Compliance with Commenda

Managing Texas sales tax registration and ongoing compliance doesn’t have to be complicated. With Commenda, you can get compliant fast, whether you’re a remote seller, an ecommerce business, or a marketplace facilitator.

Fast and Easy Sales Tax Registration

Commenda, a global sales tax platform, streamlines the Texas sales tax permit registration process by handling it automatically. No more guessing about forms, filing frequencies, or confusing tax rules. Just sign up, and let Commenda take care of the paperwork for you.

Ongoing Filing and Support

Once registered, Commenda keeps you compliant by automating your sales tax filings. Whether you have a zero return or a busy sales period, you’ll never miss a deadline. Our system will even track changes in tax laws and thresholds, so you don’t have to worry about compliance updates.

Multi-State Compliance

Expanding your business? No problem. Commenda supports multi-state compliance, ensuring that you’re not only up to date with Texas sales tax rules but also with those of other states, helping you scale your business without the stress of tax complexity.

No Guesswork, No Red Tape

Commenda simplifies the entire process, no red tape, no headaches. Our platform does all the hard work for you so you can focus on growing your business, not tax compliance.

With Commenda, sales tax compliance is one less thing you need to worry about, no matter where you sell or how much you sell. Want to get started? Book a demo today and experience the easiest way to stay compliant.