A Texas Sales and Use Tax Permit (also known as a sales tax permit, seller's permit, or resale certificate) is required for any business that sells tangible personal property (physical goods) or taxable services to end-users in Texas.
The permit allows you to collect sales tax from customers and remit it to the Texas Comptroller of Public Accounts.
Without a permit, you cannot legally sell taxable items at retail, nor can you purchase inventory for resale without paying sales tax to your suppliers (using a resale certificate).
This guide explains step-by-step how to apply for a Texas Sales Tax Permit online, who needs one, the information required, processing times, filing frequencies, and ongoing compliance obligations.
Who needs a Texas Sales Tax Permit?
Under Texas Tax Code Chapter 151, any person or entity engaged in the business of selling taxable items in Texas must obtain a sales tax permit.
Taxable items include:
- All tangible personal property (clothing, electronics, furniture, food, vehicles, building materials, etc.).
- Taxable services such as: amusement services (billiard halls, bowling alleys, arcades), data processing, telecommunications, credit reporting, security services, and certain repairs (motor vehicles, appliances, electronics).
- Specified taxable items like lodging (hotels, motels, short-term rentals) – but note that Airbnb and VRBO hosts may have special rules.
Exempt items (not requiring a permit) include most food for home consumption (groceries, not restaurant meals), prescription drugs, medical devices, and certain agricultural supplies.
However, if you sell both taxable and exempt items, you still need a permit to collect tax on the taxable portion.
The following are generally not required to have a permit: casual sales (occasional garage sales, selling your personal used items), wholesale sales where you only sell to other businesses that have their own permits (but you may still want a permit to avoid paying tax on inventory), and services not specifically listed as taxable.
When to apply
You must apply for a sales tax permit before you begin selling taxable items in Texas.
There is no grace period – selling without a permit is a violation and can result in penalties equal to 10% of the tax collected plus interest, and possibly criminal charges for willful evasion.
If you sell online through platforms like Shopify, WooCommerce, Amazon, or Etsy, and you have a physical presence in Texas (office, warehouse, employees, inventory stored in Texas), you must have a Texas sales tax permit.
Marketplace facilitators like Amazon may collect tax on your behalf for sales through their platform, but if you also sell directly through your own website, you need your own permit.
Step-by-step online application process
Step 1: Gather required information
Before starting the online application, collect the following information about your business:
- Legal name of the business entity (as filed with the Texas Secretary of State if an LLC or corporation, or your personal name if a sole proprietor).
- Texas taxpayer number (Comptroller ID) – if you have already registered for franchise tax. If not, the sales tax application will automatically register you for franchise tax as well.
- Business physical address in Texas (no PO boxes). This is where the Comptroller will send audit notices and correspondence.
- Mailing address (if different from physical address).
- Description of the type of items or services you will sell (e.g., "retail clothing," "restaurant with dine-in and takeout," "auto repair services").
- Estimated monthly sales tax collections (rough estimate – e.g., $500 per month).
- First date you will or did make taxable sales in Texas (do not backdate earlier than the application date).
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for sole proprietors; for LLCs/corporations, the EIN and the SSN/ITIN of the responsible party.
- Bank account information (routing and account number) if you want to set up direct deposit for tax refunds (optional but recommended).
Step 2: Access the Texas Comptroller online application portal
Go to the Texas Comptroller's website and navigate to the "Apply for a Sales Tax Permit" page (direct link: comptroller.texas.gov/taxes/sales/apply).
You have two options:
- Option A – Complete application (recommended): Use the Texas Tax Application System (TEXNET). This system registers you for sales tax, franchise tax, and other state taxes simultaneously. Click "New User? Sign Up" and create a username and password. The application takes about 20 minutes to complete.
- Option B – Expedited (if you already have a Texas taxpayer ID): Log into WebFile and select "Sales Tax – Register for a New Permit." This is faster if you are already in the system.
Step 3: Complete the application sections
The online form asks for the following information in separate sections:
- Entity type: Select your business structure (Sole Proprietorship, LLC, Corporation, Partnership, etc.).
- Ownership information: For LLCs and corporations, list the names, addresses, and SSN/ITIN of all officers, directors, members, or managers. For sole proprietors, only your information is needed.
- Business activities: Describe your primary business activity (e.g., "retail sales of electronics"). Select the appropriate NAICS code if known (e.g., 443142 for electronics stores).
- First taxable sale date: Enter a future date or the date you began selling. If you are already selling without a permit, enter the actual start date – you will owe back taxes plus penalties, but it is better to come forward voluntarily than to be caught in an audit.
- Filing frequency: The Comptroller will assign a filing frequency based on your estimated monthly tax collections – typically monthly (collections over $500/month), quarterly ($100-$500/month), or annually (under $100/month). You cannot choose; the system assigns it.
- Direct deposit: Provide banking information if you wish to receive refunds electronically.
Step 4: Submit and receive permit
After completing all sections, review the information carefully. An error in your name or address can delay processing.
Submit the application electronically. The Comptroller's system typically processes applications within 2-3 business days.
If approved, you will receive:
- A digital Sales Tax Permit (PDF) that you can download and print. There is no physical card mailed unless you request one for a fee (currently $10).
- A Texas Taxpayer Number (also called a Comptroller ID) – an 11-digit number that you will use to file returns and identify your account.
- A PIN or password to access WebFile for filing returns.
If the application is rejected, you will receive an email or letter explaining the reason.
Common rejections include: missing SSN/ITIN, using a PO Box as physical address, name mismatch with Secretary of State records (for LLCs), or past due taxes from a previous business owned by the same individual.
What to do after receiving the permit
Once you have your Sales Tax Permit, you must:
- Display the permit at your place of business. If you have an online-only business, keep a digital copy accessible and display your permit number on your website (if required by your e-commerce platform).
- Collect sales tax from Texas customers at the applicable rate. The Texas state sales tax rate is 6.25%. Local jurisdictions (cities, counties, transit authorities, special districts) can add up to 2%, for a total maximum rate of 8.25%. Use the Comptroller's online rate finder to determine the correct total rate for each customer's delivery address.
- File sales tax returns on the assigned frequency (monthly, quarterly, or annually). Returns are due on the 20th of the month following the reporting period (e.g., January sales tax is due by February 20th). Even if you collected $0 in tax during a period, you must file a "zero return" to avoid penalties.
- Issue a Texas Resale Certificate (Form 01-339) to your suppliers to purchase inventory without paying sales tax. You can download a blank Form 01-339 from the Comptroller's website, fill in your permit number and business name, and provide it to each supplier. Misusing a resale certificate to buy personal items exempt from tax is a felony.
- Renew the permit – Texas sales tax permits do not expire, but they become inactive if you do not file returns for 12 consecutive months. To reactivate, you must file all missing returns and pay any penalties.
Penalties for non-compliance
Failing to obtain a permit before selling, or failing to file sales tax returns, carries severe penalties:
- Late filing penalty: 5% of the tax due for the first 30 days, plus an additional 5% for each additional 30 days (maximum 15% of the tax due).
- Late payment penalty: 5% of the tax due plus 0.5% interest per month on the unpaid balance.
- No permit penalty: If you collect tax but do not have a permit, the Comptroller can assess a penalty of 10% of the total tax collected.
- Criminal penalties: Willful failure to collect or remit tax is a state jail felony, punishable by 180 days to 2 years in jail and a fine up to $10,000.
Important note for online sellers: Since the 2018 Supreme Court decision in South Dakota v.
Wayfair, Texas requires out-of-state sellers without a physical presence to collect sales tax if they exceed $500,000 in Texas sales in the previous 12 months (economic nexus).
However, this article covers in-state businesses. If you are an out-of-state seller meeting the economic nexus threshold, you must register for a Texas Sales Tax Permit as a "remote seller" – the application process is similar but you will not be required to provide a Texas physical address (you can use the address of your registered agent).