Texas

Texas Sales Tax for LLCs

Complete 2026 guide to $Texas sales tax for LLC owners — rate, economic nexus threshold, registration, taxable items, and filing cadence.

Texas sales tax rate

6.25% state + up to 2% local (max 8.25%)

Economic nexus: $500,000 in annual sales

Texas-Specific Notes

Destination-based sourcing
Most services exempt (except taxable services list)
Monthly or quarterly filing

How to Register + File $Texas Sales Tax

1
Determine if you have nexus
Physical presence (office, inventory, employees) in Texas = automatic nexus. Economic nexus: $500,000 in annual sales. Crossing either triggers registration.
2
Register with ${state.name} Department of Revenue
Free online. Get a sales tax permit / seller's permit / tax ID. 1-3 week processing.
3
Determine taxability of your products/services
Texas taxability database shows specific items. Most tangible goods = taxable. Most services = exempt (varies).
4
Collect sales tax at point of sale
Configure POS/e-commerce (Shopify, Stripe, Square) to collect correct rate based on customer location.
5
File returns on assigned cadence
Monthly (high volume), quarterly, or annually. Most states require $0 returns even with no sales.
6
Remit collected tax with return
Sales tax is trust-fund tax — you collected on behalf of the state. Failing to remit triggers personal liability + penalties.
7
Keep records 4-7 years
Customer addresses, tax rates applied, exemption certificates, returns, payments. Audit-ready documentation.

FAQ

Does my Texas LLC need to collect sales tax?

If you sell taxable goods or services with Texas nexus (physical presence or economic nexus threshold met), yes. Texas rate: 6.25% state + up to 2% local (max 8.25%). Register for a sales tax permit with the Texas Department of Revenue.

What's the sales tax rate in Texas?

6.25% state + up to 2% local (max 8.25%)

When does my LLC trigger Texas economic nexus?

$500,000 in annual sales. Crossing the threshold requires you to register, collect, and remit Texas sales tax — even without physical presence (post-Wayfair, 2018).

How do I register for a Texas sales tax permit?

Online via the Texas Department of Revenue website. Application is free in most states, takes 1-3 weeks to process. You'll receive a seller's permit / sales tax ID. Display it in your business location if required.

How often do I file Texas sales tax returns?

Filing cadence depends on your tax liability: monthly (high volume, typically > $X/mo in tax), quarterly (medium), or annually (low volume). Texas assigns you a cadence when you register. Returns due on specific days — typically 20th of the month following the period.

What sales are taxable in Texas?

Generally: tangible personal property. Typically exempt: most services, prescription drugs, groceries (varies), manufacturing equipment. Specific taxable/exempt list varies by state. Consult the Texas Department of Revenue taxability database.

Form your Texas LLC first

Before registering for sales tax, you need an EIN and LLC. FormifyAI handles formation in minutes.

Form your LLC Texas tax structure

How to Register + File $Texas Sales Tax

Determine if you have nexus

Physical presence (office, inventory, employees) in Texas = automatic nexus. Economic nexus: $500,000 in annual sales. Crossing either triggers registration.

Register with ${state.name} Department of Revenue

Free online. Get a sales tax permit / seller's permit / tax ID. 1-3 week processing.

Determine taxability of your products/services

Texas taxability database shows specific items. Most tangible goods = taxable. Most services = exempt (varies).

Collect sales tax at point of sale

Configure POS/e-commerce (Shopify, Stripe, Square) to collect correct rate based on customer location.

File returns on assigned cadence

Monthly (high volume), quarterly, or annually. Most states require $0 returns even with no sales.

Remit collected tax with return

Sales tax is trust-fund tax — you collected on behalf of the state. Failing to remit triggers personal liability + penalties.

Keep records 4-7 years

Customer addresses, tax rates applied, exemption certificates, returns, payments. Audit-ready documentation.

FAQ

Does my Texas LLC need to collect sales tax?

What's the sales tax rate in Texas?

6.25% state + up to 2% local (max 8.25%)

When does my LLC trigger Texas economic nexus?

$500,000 in annual sales. Crossing the threshold requires you to register, collect, and remit Texas sales tax — even without physical presence (post-Wayfair, 2018).