Remote sellers must get a Texas sales and use tax permit and collect tax once their total Texas revenue passes $500,000 in the previous 12 calendar months. Marketplace sales count toward that total even when the marketplace collects the tax, and SaaS is taxable in Texas on 80% of the price.
Texas at a glance
- Economic nexus threshold: $500,000
- Measured over: Preceding 12 calendar months
- Notes: Total Texas revenue, including marketplace and nontaxable sales
Checked against state guidance in October 2026. Compare every state
Free tool
Check your Texas sales tax nexus
Enter your sales and number of orders into each state for the period that state measures (usually the current or previous calendar year). The checker compares them with each state’s economic nexus threshold.
Thresholds last reviewed September 2026. States define includable sales differently (gross, retail or taxable), some count marketplace sales and some do not, and a physical presence such as inventory or staff creates nexus on its own. Results are estimates for general information only, not legal, tax or financial advice. Confirm them with your own CPA, tax adviser or attorney before making decisions. Using this tool does not create a client relationship with Catching Numbers Inc.
Do Amazon, Etsy and other marketplace sales count toward the Texas threshold?
Yes. The Texas Comptroller requires you to include marketplace sales in your Texas revenue, even when the marketplace provider is collecting and paying the tax. Texas also counts nontaxable sales, sales for resale and separately stated delivery and installation charges.
If you sell into Texas only through marketplaces that certify they will collect the tax, you don’t need your own permit, but you must keep records of those sales for at least four years.
When do I have to register and start collecting?
Once your Texas revenue for the previous 12 calendar months passes $500,000, apply for a permit and start collecting on your direct sales. Texas measures on a rolling 12 months, so check it monthly. You can stop collecting only after 12 consecutive months below the threshold.
How do I register for Texas sales tax?
Apply online with the Texas Comptroller for a sales and use tax permit. There is no fee. Remote sellers can also choose to use the single local use tax rate at the same time.
What rate do I charge Texas customers?
The state rate is 6.25%, and cities, counties and special districts add up to 2%, for a combined maximum of 8.25%. Remote sellers have a simpler option: elect the single local use tax rate (1.75% for 2026) with Form 01-799, and charge one combined rate of 8% on every Texas order instead of looking up local rates.
Is SaaS taxable in Texas?
Yes. Texas taxes SaaS and most cloud software as a data processing service, with a 20% exemption, so tax applies to 80% of the price. On a $1,000 subscription, tax is charged on $800.
Is shipping taxable in Texas?
Yes, when the item is taxable. Texas treats shipping, delivery and handling charges as part of the sales price of a taxable item, even if they are listed separately on the invoice. Delivery charges on a nontaxable item are not taxable.
Do I owe Texas franchise tax as a remote seller?
Texas has no corporate income tax, but it has a franchise (margin) tax. A company with $500,000 or more of Texas gross receipts has nexus, even with no presence there. No tax is due if total revenue is at or below $2.65 million for the 2026 and 2027 reports, but corporations and LLCs with nexus still file a Public Information Report (or an Ownership Information Report for some entity types) by May 15 each year.
Missing that report can lead to forfeiture of your right to do business in Texas. Check your position with our Texas income tax nexus guide.
What if I store inventory in Texas, including Amazon FBA?
Inventory in Texas, including in a marketplace warehouse, makes you a Texas seller with a physical presence. The Comptroller says a Texas seller needs a permit even if it sells only through a marketplace, whatever its sales total.
Frequently asked questions
What is the Texas economic nexus threshold for 2026 and 2027?
$500,000 of total Texas revenue in the previous 12 calendar months. It includes taxable and nontaxable sales, marketplace sales and separately stated delivery charges. There is no transaction count test. No change has been announced for 2027 as of October 2026.
What is the Texas single local use tax rate?
An optional local rate that remote sellers can elect instead of charging each local rate. It is 1.75% for 2026, which makes a combined rate of 8% with the 6.25% state rate. You elect it with Form 01-799.
Is digital or downloaded software taxable in Texas?
Yes. Texas taxes prewritten software however it is delivered, and SaaS is taxed as a data processing service on 80% of the price.
Do I need to file a Texas franchise tax report if I owe nothing?
Texas no longer requires a No Tax Due Report from entities at or below the $2.65 million threshold, but corporations and LLCs with nexus must still file a Public Information Report (or Ownership Information Report) by May 15.
Selling into Texas and other states?
We track your sales by state every month as part of your bookkeeping, so you see a threshold coming before you cross it, and your books show exactly what you collected and owe.
General information for remote sellers, checked against state guidance in October 2026. Texas rules change and depend on your facts, so confirm your situation with the state or a sales tax advisor before registering or filing. We don’t prepare sales or income tax returns.