How to Register a Texas Sales Tax Permit

To register for a Texas sales tax permit, go to the Comptroller's Texas Online Tax Registration Application page, select "Apply for Permit via eSystems," create an eSystems profile, and complete the Sales and Use Tax permit application online. The permit is free: "Sales and use tax permits are issued without charge," though the Comptroller may require a security bond (34 TAC §3.286; Texas Comptroller). The Comptroller says to "Allow 2-3 weeks to receive your permit." Remote sellers, which Texas defines as "out-of-state sellers whose only activity in Texas is the remote solicitation of sales," must have the permit "no later than the first day of the fourth month after the month" they exceed the $500,000 threshold, unless they sell only through marketplaces that certify they collect the tax and have no inventory stored in Texas (Texas Comptroller). Sellers with a physical presence in Texas need the permit before they start selling. If you're already past that date, register anyway: Texas says that failing to get a permit "does not relieve a seller" from the obligation to collect and remit the tax (34 TAC §3.286).

Do You Need to Register in Texas?

Texas gives out-of-state (remote) sellers a $500,000 safe harbor: "Remote sellers with total Texas revenue of less than $500,000 in the preceding twelve calendar months are not required to obtain a tax permit" (Texas Comptroller). That is the same dollar figure California uses (CDTFA) and New York uses, though New York also requires "more than 100 sales" (NY Tax Department). Some states set it lower: North Carolina and Washington use $100,000 (NC DOR; Washington DOR). Texas's test is revenue only; there is no transaction count.

You need to register for a Texas sales tax permit if:

You are a remote seller and your total Texas revenue reaches $500,000 in the preceding twelve calendar months. This counts more than taxable sales: it is "based on gross revenue from taxable and nontaxable sales," including shipping and similar fees, "sales for resale and sales to exempt entities" (Texas Comptroller). It also counts "the aggregate sum of all sales made on all mediums, including all marketplaces and the remote seller's own website" (34 TAC §3.286), OR
You are engaged in business in Texas through a physical presence, regardless of dollar amount. The Comptroller lists, among others: "You have a temporary or permanent location (e.g., office, warehouse, place of distribution) in Texas that you operate directly or through an agent" and "You have an employee or representative in Texas who sells, delivers or takes orders for taxable items" (Texas Comptroller). The rule also covers "sellers operating temporarily in this state" (34 TAC §3.286), and the application asks whether you sell at "temporary locations (fairs, trade shows, etc.)" (Form AP-201).

Marketplace-only sellers: If you are a remote seller and sell only through marketplaces, you don't need a permit if you have "received and accepted in good faith a certification that the marketplace provider will collect sales and use tax," but you "must retain required records of all marketplace sales for at least four years." Inventory a marketplace stores for you in Texas changes this above $500,000. Below the safe harbor, a remote seller with goods in a marketplace provider's Texas facility "does not need to obtain a permit" if the provider has certified it will collect. But "if you are above the $500,000 safe harbor threshold and have tangible personal property temporarily stored in Texas at a marketplace provider's facility, then you must obtain a tax permit and collect tax on your sales." If you also sell through your own website, your marketplace sales still count toward the $500,000, and above it you collect on your website sales. Sellers who live in Texas are different: a Texas seller selling only through a marketplace has "physical presence in Texas and must have an active sales and use tax permit" (Texas Comptroller).

If you are a remote seller whose total Texas revenue is below $500,000 and you have no physical presence in the state, you have no Texas sales tax registration obligation.

Important: The threshold is measured over "the preceding twelve calendar months," not the calendar year (34 TAC §3.286). The Comptroller's own example uses July 1 through June 30: a remote seller that exceeds the safe harbor in that period "shall obtain a permit by October 1" (Texas Comptroller).

What You Need Before You Start

Gather the following before beginning the eSystems application. The Comptroller's permit page lists the required documentation, and the paper version of the application, Form AP-201, shows the questions in full.

Business information:

Legal business name (exactly as registered)
Business address. Your mailing address can be outside Texas. If you have a place of business in Texas, the application says: "Do NOT use P.O. Box address--must provide physical location address."
Social Security numbers for a sole owner and for each officer or director, and Social Security or federal employer identification numbers for each partner (Texas Comptroller). You can apply without a federal identification number if your business doesn't have one yet (Texas Comptroller). If an owner, partner, officer or director has no Social Security number, you can't use the online application and must use Form AP-201 instead.
Texas Secretary of State file number (if incorporated or LLC registered in Texas)
A NAICS code: the Comptroller says a "North American Industrial Classification System (NAICS) code required for all businesses" (Texas Comptroller)

Contact information:

Contact person for business records, with phone number and email
Mailing address if different from business address

Business activity details:

The date you will begin making sales
Your expected monthly taxable sales
Types of products or services sold

The application also asks for the "Name of bank or other financial institution," and for the name of your credit card or online payment processor if you use one (Form AP-201). You pay each return through Webfile (electronic funds transfer or credit card), EDI, TEXNET or, for smaller taxpayers, by check (Texas Comptroller).

Step-by-Step: Registering Through Texas eSystems

Step 1 — Go to the Texas Comptroller eSystems Portal

Navigate to: comptroller.texas.gov/taxes/permit and select "Apply for Permit via eSystems."

On the eSystems login page, select Create Profile. You choose a User ID and password, answer security questions and accept the terms of use. You'll then receive a verification email: "The email verification link is good for 24 hours." Confirm it before proceeding (Texas Comptroller).

Step 2 — Start a New Tax Permit Application

After logging in, choose Apply for Sales and Use Tax Permit, listed among eSystems' registration transactions (Texas Comptroller).

The same application covers a few related registrations. The Comptroller lists "Sales and Use Tax," "911 Surcharge and Fees" and "Sales Tax Surcharge on Diesel Equipment" (Texas Comptroller). For most ecommerce sellers, you only need the Sales and Use Tax permit.

Step 3 — Enter Business Information

Fill in:

Legal entity type (sole proprietor, LLC, corporation, etc.)
Business name and any DBA ("doing business as") names
Federal EIN or SSN
Principal place of business address
Mailing address

Out-of-state sellers: Use your actual business address. You do not need a Texas address to obtain a Texas sales tax permit. The application's place-of-business section says: "If you do not have a physical PLACE OF BUSINESS in Texas, skip to Item 30" (Form AP-201).

Step 4 — Describe Your Business Activity

Select your primary NAICS code. Pick the code that matches what you sell. The Comptroller's pages don't say which edition of NAICS the application uses. In the current 2022 edition, the old 2017 "Electronic Shopping and Mail-Order Houses" code (454110) was split among product-based retail codes such as 458110 "Clothing and Clothing Accessories Retailers" and 459999 "All Other Miscellaneous Retailers" (U.S. Census Bureau, 2017 to 2022 NAICS concordance). On the paper application, "If you don't know your NAICS code, indicate your principal type of business" (Form AP-201).

Provide a brief description of what you sell and to whom. Keep it simple, for example: Online retail sales of [your product category] to consumers via Shopify and marketplace platforms.

Answer the sales-volume questions accurately. The paper application asks, "Will your anticipated monthly taxable sales exceed $8,000 per month?" The Comptroller says new permit holders "will be notified by letter after their application for a sales tax permit has been approved whether they will file monthly or quarterly" (Texas Comptroller). Texas sets filing frequency by the amount of state tax you report (34 TAC §3.286):

Monthly filing: "Permit holders who have $1,500 or more in state sales and use tax per quarter to report must file monthly sales and use tax returns except for permit holders who prepay the sales and use tax" Quarterly filing: "Permit holders who have less than $1,500 in state sales and use tax per quarter to report may file sales and use tax returns quarterly." Yearly filing: "Permit holders who have less than $1,000 in state sales and use tax to report during a calendar year may file yearly sales and use tax returns upon authorization from the comptroller."

Step 5 — Enter Your Texas Nexus Start Date

The application asks when you will begin making sales (Form AP-201). For a remote seller, the permit and collection obligation start no later than the first day of the fourth month after the month total Texas revenue exceeded the safe harbor (Texas Comptroller). A seller with a physical presence in Texas needs the permit before it starts selling.

If you are registering late, use the date your Texas obligation actually began, and talk to a tax professional about the periods you missed (see "What If You're Already Past the $500,000 Threshold?" below).

Step 6 — Review and Submit

Review every field. Errors to check for:

A mistyped EIN or Social Security number
A P.O. Box entered as a Texas place-of-business address (the application requires a physical location address)
A NAICS code that doesn't match what you sell

Submit the application. The Comptroller says to "Allow 2-3 weeks to receive your permit" for online applications (Texas Comptroller). For the paper Form AP-201, "You will receive your permit approximately four weeks after we receive your completed and signed application. Incomplete applications will delay the process" (Form AP-201).

Step 7 — Receive Your Texas Sales Tax Permit

Keep your permit and your 11-digit Texas taxpayer number. You'll need the number when you contact the Comptroller (Texas Comptroller). You log in to eSystems with your User ID. To file in Webfile, the Comptroller says "You need Texas taxpayer ID numbers and Webfile number(s) for each taxpayer account." The Webfile number is "two letters followed by six numbers" and is printed on the tax report the Comptroller mails you (Texas Comptroller).

If you have a place of business in Texas, you must display your permit there. Texas issues "a separate permit for each place of business in this state," and "The holder of a permit shall display it conspicuously in the place of business to which it applies" (Texas Tax Code §151.201). The Comptroller's list of permit-holder duties begins with "Post your permit at your place of business" (Texas Comptroller). A remote seller with no Texas place of business has nowhere to post it; keep it with your business records.

After Registration: Collecting Texas Sales Tax

Texas combines a state sales tax rate with local rates set by cities, counties, special purpose districts and transit authorities. "Texas imposes a 6.25 percent state sales and use tax," and local jurisdictions can add up to 2 percent "for a maximum combined rate of 8.25 percent" (Texas Comptroller). Check the Comptroller's Sales Tax Rate Locator for your buyer's exact combined rate.

As an out-of-state seller without a physical Texas location, you generally charge the rate where the order is delivered: "Local use tax is due at the location in Texas where the order is shipped or delivered when the order is not received or fulfilled from a Texas place of business." Remote sellers can instead elect the single local use tax rate: "The current single local use tax rate is 1.75 percent." You can elect it on your permit application or later with Form 01-799. "Businesses located in Texas are not remote sellers and cannot use the single local use tax rate" (Texas Comptroller).

Ecommerce platforms such as Shopify can calculate and collect tax once you add your Texas registration in their tax settings. If you elect the single local use tax rate, check that your checkout charges that rate rather than destination rates.

In Shopify (Shopify Help Center):

Go to Settings → Taxes and duties
In the Manage sales tax collection section, click United States, then click Add new state in the Regional settings section
Select Texas and enter your Texas taxpayer number in the Sales tax ID field
Click Collect taxes
Make sure your store's location addresses are correct. Shopify says that if you've created a location, "the location address is used to determine nexus." Shopify also tells merchants to consult a tax professional about their setup

Texas Filing Deadlines

Texas sales tax returns are due on the 20th of the month following the close of the filing period (34 TAC §3.286; Texas Comptroller):

Filing Frequency	Period	Due Date
Monthly	January	February 20
Monthly	February	March 20
Quarterly	Q1 (Jan–Mar)	April 20
Quarterly	Q2 (Apr–Jun)	July 20
Annual	Full year	January 20

"If a due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date" (Texas Comptroller).

Timely Filing Discount: "Permitted sales taxpayers can claim a discount of 0.5 percent of the amount of tax timely reported and paid." Monthly and quarterly filers who prepay a reasonable estimate can claim an additional 1.25 percent (Texas Comptroller). The discount is for filing and paying on time, not for filing electronically, and a late filer "forfeits all discounts" (34 TAC §3.286).

What If You're Already Past the $500,000 Threshold?

If you are a remote seller whose total Texas revenue has been over $500,000 for the past year and you haven't registered, don't panic, but act quickly.

Options:

Register now and begin filing. Registering doesn't erase past periods. Under Texas's rule, failing to obtain a permit "does not relieve a seller" from the obligation "to properly collect and remit sales and use taxes" (34 TAC §3.286). Tax for the months since your obligation began can still be assessed.
Voluntary Disclosure Agreement (VDA). If you're concerned about back-liability for prior periods, Texas offers a VDA program through the Comptroller's office. You qualify only if you have "not been previously contacted by the Comptroller" about the liability and have not received an audit notice. The Comptroller "will limit its review to reports due four years from the date the business initially contacts us" (with no limit for tax collected and not remitted), and "Statutory penalties and interest will be waived, except interest on taxes collected and not remitted" (Texas Comptroller). You should consult a tax professional before initiating a VDA.

The worst thing to do: Continue selling to Texas buyers above the threshold without registering. Texas's usual limit is four years: "No tax imposed by this title may be assessed after four years from the date that the tax becomes due and payable" (Texas Tax Code §111.201). That limit doesn't apply when no return was filed: the Comptroller "may assess a tax imposed by this title at any time if" no report for the tax has been filed (Texas Tax Code §111.205). A VDA limits the review to four years, except for tax you collected and didn't remit.

Taxero Handles Texas Registration Automatically

If you'd rather not do this manually, Taxero handles state registration for you. When you cross a threshold, Taxero says it "handles registration on your behalf. We access state portals securely using your authorized credentials" (Taxero). Taxero also monitors your Texas threshold, and before each filing deadline it prepares your Texas return: "You review and approve. We submit directly to the state."

Start Texas registration with Taxero →

Frequently Asked Questions

Q: Is a Texas sales tax permit free?
A: Yes. "There is no fee for the permit, but you may be required to post a security bond." The permit is "valid only if you are actively engaged in business as a seller" (Texas Comptroller), and the Comptroller may cancel a permit that reports no business activity for a calendar year (34 TAC §3.286).

Q: How long does Texas sales tax registration take?
A: For online applications, the Comptroller says to "Allow 2-3 weeks to receive your permit" (Texas Comptroller). Paper applications take about four weeks (Form AP-201).

Q: Do I need a Texas address to get a Texas sales tax permit?
A: No. Out-of-state businesses register using their own business address. If you have no place of business in Texas, you skip the place-of-business section of the application (Form AP-201).

Q: What's the Texas economic nexus threshold?
A: For remote sellers, Texas uses a $500,000 safe harbor based on total Texas revenue in the preceding twelve calendar months, with no transaction count (Texas Comptroller). California and New York also use $500,000 (New York adds more than 100 sales), while some states, such as North Carolina and Washington, use $100,000 (CDTFA; NY Tax Department; NC DOR; Washington DOR).

Q: When do I start collecting Texas sales tax after registering?
A: A remote seller must "obtain a permit and begin collecting" no later than the first day of the fourth month after the month it exceeds the safe harbor (Texas Comptroller). A remote seller "who only sells through a marketplace provider that certifies they are collecting and reporting sales and use tax on the remote seller's behalf is not required to hold a Texas tax permit" (Texas Comptroller), unless it is above $500,000 and a marketplace stores its inventory in Texas (Texas Comptroller). A seller engaged in business in Texas needs a permit before it starts selling. Do not wait until your first filing is due.

Q: What if I make a mistake on the Texas registration application?
A: Contact the Texas Comptroller's office at 800-252-5555, the sales and use tax line (Texas Comptroller). After your permit is issued, you can update your address and contact details online, on your sales tax return or through the Texas Tax Help web form (Texas Comptroller).

Q: What happens if I file Texas sales tax late?
A: "A $50 penalty is assessed on each report filed after the due date." "If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed," and "If tax is paid over 30 days after the due date, a 10 percent penalty is assessed" (Texas Comptroller). Paying after the date on a Notice of Tax/Fee Due adds another 10%, for a total of 20% (Texas Comptroller). Interest begins 61 days after the due date at the prime rate plus 1 percent, which is 7.75 percent for 2026 (Texas Comptroller). If you fail to file or pay, the Comptroller may suspend or revoke your permit after a hearing (Texas Tax Code §151.203).

Summary

Registering for a Texas sales tax permit starts on the Comptroller's eSystems portal, and the Comptroller says to allow 2–3 weeks to receive the permit. Remote sellers need it once total Texas revenue reaches $500,000 in the preceding twelve calendar months, unless they sell only through marketplaces that certify they collect the tax and, above $500,000, have no inventory stored in Texas. Sellers located in Texas need it regardless. The permit is free, and returns are due by the 20th of the month after each monthly, quarterly or yearly period.

If you'd rather handle it without filling out government forms, Taxero registers you automatically and prepares your returns on schedule.

This article is for general informational purposes only and isn't tax advice. Sales tax rules vary by state and change often — consult a qualified tax professional about your specific situation before acting on anything here.

How to Register for a Sales Tax Permit in Texas (Step by Step)