How To Get a Texas Sales Tax Permit
Learn how to get a Texas sales tax permit step by step. Apply online through the Texas Comptroller using Form AP-201, or submit by mail, email, or fax. The permit is free.
Bizee Editorial Staff
Editorial Team
Introduction
Most Texas businesses that sell taxable goods or services need a sales tax permit before they can legally collect sales tax from customers. You apply through the Texas Comptroller of Public Accounts — online if you have a Social Security number, or by submitting Form AP-201 by mail, email, or fax. The permit is free.
What is a Texas sales tax permit?
A Texas sales tax permit — also called a sales and use tax permit or seller's permit — is the state authorization that allows your business to collect sales tax on taxable goods and services sold in Texas. The Texas Comptroller of Public Accounts issues the permit, and it's free to get.
Once you have the permit, you're required to collect the applicable sales tax rate from customers, report it, and send it to the state on a regular filing schedule. The permit doesn't expire as long as your business is still operating and collecting sales tax — you won't need to renew it annually.
One thing worth knowing: a sales tax permit is not the same as a resale certificate. A resale certificate lets you buy goods tax-free for resale. A sales tax permit lets you collect tax from your customers. They serve different purposes and are separate documents.
Who needs a Texas sales tax permit?
You need a Texas sales tax permit if your business is engaged in Texas and sells, leases, or rents taxable goods, provides taxable services, or acquires taxable goods or services for resale. This applies to sole proprietorships, LLCs, and corporations alike.
Taxable items include physical products like clothing, furniture, computer equipment, and software downloads, as well as services like auto repair and house cleaning. Groceries, most medications, utilities, and fuel are generally exempt. The Texas Comptroller's website has the full list of taxable and exempt items.
Out-of-state businesses aren't automatically off the hook. If you're a remote seller with $500,000 or more in Texas revenue over the past 12 months, you're also required to register for a Texas sales tax permit — even without a physical presence in the state.
Running a business without a permit when one is required can mean fees and penalties. Getting registered before you open your doors is the straightforward way to avoid that.
How to apply for a Texas sales tax permit
You apply for a Texas sales and use tax permit through the Texas Comptroller of Public Accounts. There are 2 paths: online registration or a paper application using Form AP-201. Online is faster and the Comptroller's preferred method.
Apply online
If you have a Social Security number, you can complete the entire registration online through the Texas Comptroller's eSystems portal. The online application walks you through the same fields as Form AP-201 and submits directly to the Comptroller. This is the fastest way to get your permit.
What you'll need to have ready depends on your business structure. Sole owners need their Social Security number. Partnerships need the Social Security numbers or Employer Identification Numbers (EINs) for each partner. Corporations need the Social Security numbers of each officer or director, plus the Texas corporation file number issued by the Texas Secretary of State.
Apply by mail, email, or fax
If you don't have a Social Security number, you'll need to download Form AP-201 — the Texas Application for Sales and Use Tax Permit — from the Texas Comptroller's website, complete it, and submit it by one of these methods:
Mail: Comptroller of Public Accounts, 111 E. 17th St., Austin, TX 78774-0100. Email: sales.applications@cpa.texas.gov. Fax: 512-936-0010. The form and its instructions are available as a PDF download from the Comptroller's Sales and Use Tax Forms page.
FAQ
Nothing. A Texas sales and use tax permit is free. The Texas Comptroller of Public Accounts does not charge an application fee, which makes Texas one of the more straightforward states for sales tax registration.
No. A Texas sales tax permit doesn't expire and doesn't require annual renewal. As long as your business is still operating and collecting sales tax, the permit stays valid. You only need a new permit if you sell the business — the buyer can't use your existing permit.
No. If you operate in more than 1 location or run multiple businesses, you need a separate permit for each business address. Each permit is tied to a specific location, so you'll need to apply for additional permits linked to each address where you conduct business.
Your permit doesn't transfer. When you sell your business, the buyer needs to apply for a new Texas sales tax permit in their own name. Your permit is tied to you as the permit holder, not to the business location or name.
It depends. If you're a remote seller with $500,000 or more in Texas sales revenue over the past 12 months, you're required to register for a Texas sales tax permit even without a physical presence in the state. Below that threshold, you generally don't need to register. A tax professional can help you figure out where you stand.
No. These are 2 different documents. A sales tax permit authorizes your business to collect sales tax from customers. A resale certificate lets you buy goods tax-free when you intend to resell them. You may need both, but they serve different purposes and are issued separately.
No. An Employer Identification Number (EIN) is a federal tax ID issued by the IRS to identify your business for federal tax purposes. A Texas sales tax permit is a state-level authorization issued by the Texas Comptroller that allows you to collect sales tax. You may need both, but they come from different agencies and serve different functions.
Go to the Texas Comptroller's online registration portal at comptroller.texas.gov/taxes/permit and complete the Texas Sales and Use Tax Permit Application through the eSystems portal. You'll need a Social Security number to use the online option. If you don't have one, download Form AP-201 and submit it by mail, email, or fax instead.
