Texas Sales Tax Permit Guide | LaunchReady Texas

Do You Need a Sales Tax Permit?

You need a Texas Sales and Use Tax Permit if your business:

Sells tangible personal property in Texas
Sells taxable services in Texas
Leases or rents taxable items
Sells items online to Texas customers

Taxable services include: internet access, cable TV, data processing, certain repair services, and more. Not all services are taxable — check the Texas Comptroller's website for your specific industry.

You do not need a permit if you only provide non-taxable professional services (consulting, legal, accounting, most medical services).

What the Permit Gives You

Authority to collect Texas sales tax from customers
A Texas tax ID number (different from your EIN)
Access to purchase certain items tax-free for resale (resale certificate)

Operating without a permit when required can result in penalties, back taxes, and interest.

Before You Start

Have ready:

Your LLC name and address
Your EIN
Your NAICS code (industry classification — use the NAICS lookup to find yours)
Your Texas file number
Business bank account information
Date your business started (or will start) making sales

Step 1: Go to the Texas Comptroller eSystems Portal

Go to Texas Comptroller eSystems
Select "Apply for a Tax Permit"
Create an account or log in

Step 2: Select Your Permit Type

Choose "Sales and Use Tax" as your permit type.

If you also lease motor vehicles, have hotel/motel revenue, or sell mixed beverages, additional permits may apply.

Step 3: Complete the Application

You will enter:

Business legal name
DBA name (if any)
Business type (LLC)
EIN
Business start date
Business address
Owner/officer information
NAICS code
Description of what you sell

Step 4: Submit and Receive Your Permit

Processing typically takes 2–3 business days. You will receive:

A Texas Sales Tax Permit (permit number)
Instructions for filing your sales tax returns

Keep your permit number accessible. You will use it on returns and may be asked for it by suppliers.

Understanding Your Filing Frequency

After receiving your permit, the Comptroller assigns you a filing frequency:

Monthly — if you collect more than $1,500/month in sales tax
Quarterly — moderate collectors
Annually — if you collect $1,000 or less per year

Filing due dates are the 20th of the month following the close of your reporting period.

Collecting Sales Tax from Customers

Texas has a base state sales tax rate of 6.25%. Local jurisdictions (city, county, transit, special purpose districts) can add up to 2% more, for a maximum combined rate of 8.25%.

Use the Texas Comptroller Sales Tax Rate Locator to find the exact rate for your business address and customer locations.

Resale Certificates

If you purchase items that you will resell (not use yourself), you can provide your supplier a Texas Sales and Use Tax Resale Certificate to purchase those items tax-free.

Keep copies of all resale certificates you issue and receive for your records.

Common Mistakes

Not registering until you've already been making taxable sales
Collecting sales tax without a permit
Using the wrong tax rate
Missing filing deadlines (even zero-sales periods require a return if you're registered)
Confusing state EIN with Texas tax ID

What Comes Next

With your LLC, EIN, and sales tax permit in place, your business foundation is set. Next steps:

Open your business bank account
Set up bookkeeping
Build your 90-day action plan
If government contracts are your goal: SAM.gov Registration

Get this done right the first time. The Open for Business Workshop covers business formation, EIN, and sets you up with a complete action plan. See the workshop →