Texas Seller’s Permit: How to Apply, Cost & Online Selling Rules

It’s important to understand how sales tax works in Texas, especially if you plan to sell goods or provide taxable services. A Texas Seller’s Permit, issued by the Texas Comptroller of Public Accounts, allows your business to legally collect and remit sales tax from customers.

So let’s take a closer look at what a Texas Seller’s Permit is, why it matters, and how you can apply for one quickly and efficiently.

What is a Texas Seller’s Permit, and Why Do You Need It for Tangible Personal Property

A Texas Seller’s Permit (also known as the sales and use tax permit) is a license issued by the Texas Comptroller that allows a business to collect sales tax on sales of tangible personal property and certain taxable services in Texas. It’s required for any individual, partnership, or corporation “engaged in business” in Texas if they sell, lease, or rent tangible personal property, or offer taxable services within the state. That includes both physical stores and online sellers who ship into Texas or deliver goods there.

Without a permit, a business cannot legally collect sales tax, which means it may also be liable for the tax it should have collected, plus penalties and interest. The term tangible personal property refers to items you can touch, weigh, measure, or see, for example, retail goods, furniture, equipment, and supplies. Sellers also need a permit if they lease or rent property. If you are selling intangible goods only, or services exempt from tax, you may not need one, but if you’re unsure, you should always contact the government for help.

How to Get a Seller’s Permit in Texas: Step-by-Step Guide to Applying

Confirm you need a permit

If you sell or lease tangible personal property, provide taxable services, or are otherwise “engaged in business” in Texas (including certain remote sales), you must register for a Sales tax permit / Texas Seller’s Permit.¹.

Decide your registration route

Texas offers an online registration system (recommended) and a mail-in form (AP-201). Online registration is faster and lets you manage filings through the Comptroller’s eSystems/Webfile.¹

Gather required information

Prepare: business legal name, trade name (DBA), physical & mailing addresses, owner/officer names, SSN or EIN (EIN not required to apply), NAICS code, estimated start date, and estimated monthly sales.¹

Complete the application (online or AP-201)

Use the Texas Online Sales Tax Registration Application to submit your information, or print/mail AP-201 to the Comptroller’s office. After processing, you’ll receive your permit/outlet number.¹

Know the costs and bond rules

How much is a seller’s permit in Texas? The permit itself has no state fee, but some businesses may be asked to post a security bond; third-party filing services charge fees if you use them.³

After approval: post permit, collect & remit

Post the permit at your place of business, start collecting sales tax on taxable sales, remit sales tax, and file returns on the schedule the Comptroller assigns (monthly, quarterly, or annually). File even when no tax is due.³

If you sell online or are out of state

Remote or marketplace sellers who meet Texas economic thresholds or otherwise have nexus must register and collect tax; non-resident sellers should review economic nexus rules and marketplace facilitator provisions.¹

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How Much Is a Seller’s Permit in Texas

One of the most common questions is: How much is a seller’s permit in Texas? The good news is: the cost to apply for the sales and use tax permit is zero. Texas does not charge a fee for obtaining the seller's permit itself. However, there may be other related costs. Depending on the business or nature of sales, the state may require a security bond in certain circumstances.¹

Also, third-party services (like filing services or expedited services) may charge fees if you use them instead of doing everything directly through the state.⁴ So while obtaining the permit has no direct fee from Texas, it could cost money depending on how you approach the process, and if you need to meet bond or ancillary obligations.¹ But for most small businesses acting directly, it's essentially free from the state’s side.¹

Do I Need a Seller’s Permit to Sell Online in Texas? Rules for Residents and Non-Residents

Yes: if you sell online and have customers in Texas, you likely need a seller’s permit. If your business is making taxable sales of tangible personal property or taxable services to Texas customers, you are “engaged in business” and must collect, remit sales tax, and have the permit.^1,Resident businesses are easily subject; non-resident sellers are also subject when they meet economic nexus thresholds (such as revenue amount from Texas customers over a certain threshold).¹

If you aren’t sure whether your product or service is “taxable,” or whether your online business counts as occasional sales vs. regular business, you should review Texas’s definitions on “tangible personal property,” “taxable services,” remote seller, and marketplace seller.¹

So with that being said, online or offline, if you sell taxable goods or services into Texas and you meet business thresholds, you need to apply for and hold a Texas seller’s permit.²

Non-Resident Seller’s Permit Texas: Special Considerations & Remitting Sales Tax

For a non-resident seller’s permit in Texas, there are extra factors to consider as well. A non-resident seller is someone whose business is physically based outside Texas but sells tangible personal property or taxable services into Texas. If that business has sufficient sales into Texas, meeting an economic threshold, or otherwise has nexus (for example, via shipping goods, having employees or agents or storing inventory), then Texas requires that seller to register for a seller’s permit, collect sales tax, and remit it accordingly.¹

Once the permit is obtained, the non-resident must file tax returns and remit sales tax collected. Even if sales are modest, if above Texas’s threshold, then permit and tax remittance obligations kick in.¹

Also, non-resident sellers should be aware of which taxable services are involved and whether they are providing taxable or exempt services. They need to understand how tangible personal property is defined, and how use-tax or out-of-state supplier rules might apply.¹

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Final Thoughts

Getting a Texas Seller’s Permit may feel like more paperwork to fill out, but it’s essential to running your business legally and smoothly. The good news is that it’s free to apply, so there’s no reason to delay getting compliant and protecting your business from penalties.

Sources:

1. Sales Tax Permit FAQ | Texas Comptroller
2. Sales Tax Permit in Texas: Everything You Need to Know | Tailor Brands
3. How to Register for a Texas Sales Tax Permit | TaxJar
4. Texas Sales Tax Permit | Tax ID Bureau