Texas sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
Texas: rate, nexus & administration.
- State rate
- 6.25%
- Local rates
- Local rates add up to 2%, capping combined rates at 8.25%
- Economic nexus
- $500,000 in sales · effective October 1, 2019Preceding 12 calendar months, gross revenue.Controlling authority: 34 Tex. Admin. Code § 3.286(b)(2)(B)(i) (Tex. Tax Code § 151.107) ↗
- Marketplace facilitator
- Yes — effective October 1, 2019
- Streamlined (SST)
- Not a member
- Administered by
- Texas Comptroller of Public Accounts ↗
What to watch in Texas
- SaaS is taxable as data processing — with 20% of the charge exempt; Comptroller rule changes in 2025 tightened sourcing and classification.
- Remote sellers can elect a single local use tax rate (published annually) instead of tracking every local jurisdiction.
- Groceries are exempt; the $500,000 threshold is one of the two highest in the country.
Rates, thresholds, and taxability change mid-year — verify against the Texas Comptroller of Public Accounts before advising. In L3i, every determination is cited to the controlling authority.
The Texas voluntary disclosure agreement.
Behind in Texas? There’s a front door. The voluntary disclosure agreement lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Texas Comptroller of Public Accounts ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Texas, in brief.
What is the economic nexus threshold in Texas?
$500,000 in sales, effective October 1, 2019. Preceding 12 calendar months, gross revenue. Once the threshold is crossed, remote sellers must register with the Texas Comptroller of Public Accounts and begin collecting.
What is the sales tax rate in Texas?
The state sales tax rate is 6.25%. Local rates add up to 2%, capping combined rates at 8.25%.
Do marketplace facilitators collect Texas sales tax?
Yes — marketplace facilitators have been required to collect since October 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Texas sales tax?
Register with the Texas Comptroller of Public Accounts before collecting — a remote seller must register once it crosses the economic nexus threshold ($500,000 in sales).
Does Texas offer a voluntary disclosure agreement (VDA)?
Yes — the Texas Comptroller of Public Accounts administers a voluntary disclosure agreement with a lookback of 48 months (4 years). Penalties are generally waived, and interest is waived as well. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Texas determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Texas question starts further ahead.
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