Texas Sales Tax Guide for E-Commerce Retailers

Am I required to collect sales tax in Texas?

Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Texas. 

E-commerce businesses with economic nexus in Texas are also required to register and collect.

You have an economic nexus in Texas if you made more than $500,000, including marketplace sales, to buyers in Texas in the previous 12 month period.

How to Register for a Texas Sales Tax Permit

If you have nexus in Texas, you can register for a permit online at the Texas Comptroller. 

Need help? Contact us for help with your Texas sales tax registration.

How to Collect Texas Sales Tax 

If you have nexus in Texas, you are required to collect sales tax whenever you make a sale to a buyer in Texas.

How to Collect Sales Tax in Intrastate Sales in Texas

Texas is an origin-based sales tax state. This means intrastate sales (sales from a seller to a buyer in Texas) are considered to take place at the seller’s location. This might be your home, warehouse, store, distribution store or other location. If you sell to a buyer in Texas, you simply need to collect sales tax at the sales tax rate at your location. That means you can collect the same sales tax rate from all Texas buyers. 

Learn more about origin and destination-based sales tax sourcing here.

How to Collect Sales Tax in Interstate Sales in Texas

But if you are located outside of Texas but make a sale to a buyer in Texas, then you are required to do one of two things:

• Calculate and charge the sales tax rate at your buyer’s location (this is the state plus any local city, county or special taxing district tax rates)
• Elect to use the Texas Single Sales Tax Rate (only available to sellers with no location in Texas). The current rate is Texas state tax rate + 1.75%. If you elect to use this single rate your business will be published in the annual Texas Register. 

Learn more about how to collect the right amount of state plus local sales tax here.

How to File Sales Tax in Texas

WWhen your Texas sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate.

Learn more about handing off your sales tax filings to HOST here!

More about Texas Sales Tax

Learn more about Texas sales tax at the Texas Comptroller.