Your obligation to collect sales tax in Texas hinges on the establishment of nexus, which can be physical or economic. Physical nexus relates to a physical presence, while economic nexus is determined by meeting specific revenue or transaction thresholds.

Is SaaS taxable in Texas?

SaaS is generally subject to sales tax in Texas, but certain exemptions may apply.

How to get a sales tax permit in Texas

Texas-based sellers should apply for a Sales Tax Permit with the Texas Comptroller of Public Accounts. Out-of-state sellers with nexus in Texas should also register for a Sales Tax Permit.

How to Collect Texas Sales Tax If You Have a Location in Texas

If you operate within Texas and make sales in the state, you are responsible for collecting the applicable sales tax rate based on your location.

How to Collect Texas Sales Tax If You Do NOT Have a Location in Texas

Out-of-state sellers with Texas nexus must collect and remit Texas’s use tax from Texas buyers.

Sales Tax Due Dates in Texas

Texas sales tax return due dates are determined by your assigned filing frequency, which may be monthly, quarterly, or annually.

Sales Tax on Shipping Charges in Texas

Shipping charges in Texas are generally taxable, but exceptions may apply.

This guide assists you in deciphering Texas sales tax regulations, simplifying your journey through the Lone Star State’s tax system. Ensure compliance and optimize your sales tax collection and remittance processes.