Texas Sales Tax Permit: How to Get a Seller's Permit From the Comptroller
Texas Sales Tax Permit: How to Get a Seller's Permit From the Comptroller
If you sell taxable goods or services in Texas, you need a Texas sales and use tax permit before your first taxable sale. The permit is the registration that lets you collect sales tax from customers and report it to the state. Most people call it a seller's permit. If you are searching for a texas sales tax registration, a texas seller's permit, or how to get a sales tax permit in texas, you want the same document. The Texas Comptroller of Public Accounts issues it, there is no application fee, and processing typically takes two to three weeks.
This guide covers who needs the permit, how to apply, what it costs, how filing frequency is assigned, and how the permit differs from the other numbers and certificates you will run into, including the texas tax id number that people often search for. This is informational content, not legal or tax advice. For questions about your specific products, customers or filing history, confirm the details with the Comptroller or a qualified CPA.
Who Needs a Texas Sales and Use Tax Permit
Texas Tax Code 151.202 requires a seller to hold a permit for each place of business. In practice, that means if you sell taxable goods or services from a location in Texas, you need one. A few situations come up often:
- Retail stores and wholesalers that sell taxable goods to customers in Texas.
- Service businesses that sell taxable services. Confirm with the Comptroller whether your particular service is taxable before you assume it is not.
- Home-based businesses. A home counts as a place of business if you receive orders there. If you take orders from a spare room, a garage or your kitchen table, you need the permit even though you have no storefront.
- Businesses with more than one location. Each place of business needs its own permit, so a company with three locations should expect to hold three.
Texas does not issue a general state business license. The permit is a sales tax registration, not a license to operate. To find other licenses, permits or registrations that apply to your business activity at the federal, state and local level, use the Texas Business Licenses and Permits Guide published by the Business Permit Office within the Texas Economic Development and Tourism Office.
What the Permit Does (and What It Does Not Do)
The permit authorizes you to collect sales tax on taxable sales and to report and remit that tax to the Comptroller. It is the document that makes you responsible for the tax.
It is easy to confuse the permit with a resale certificate, but they do different jobs:
- Your sales and use tax permit is what you hold as a seller. It registers you to collect tax from your customers.
- A resale or exemption certificate is what a buyer gives you. A business buying inventory it plans to resell can give you a certificate so you do not charge tax on that purchase. We cover resale certificates on their own page.
You need your own permit to collect tax from customers. A buyer's resale certificate does not replace it, and your permit does not let you buy goods tax free for your own use.
Before You Apply: Four Things to Settle
Get these details straight before you start the application, because they determine what the Comptroller asks you for and how you will file.
- Confirm you need a permit at each location. List every place where you will receive orders or make taxable sales, including home offices.
- Confirm your business structure and legal name. An LLC, corporation, sole proprietorship and general partnership each carry their own registration path. Keep your legal name identical to what you filed with the Texas Secretary of State or your county clerk.
- Identify your federal EIN if you have one. Your federal Employer Identification Number from the IRS is separate from any number the Comptroller assigns to your sales tax account.
- Plan your first taxable sale date. You must apply before making taxable sales. If you are launching in a few weeks, start the application now, because processing is not instant.
How to Apply for a Texas Sales Tax Permit, Step by Step
- Go to the Comptroller's permit page. Start at comptroller.texas.gov/taxes/permit/. The Comptroller accepts applications online or on paper using Form AP-220, the Texas sales and use tax permit application. Read the form instructions before you fill it out.
- Enter your business and location details. Provide your legal name, entity type, ownership information and each place of business. Your home address counts if you receive orders there.
- Describe what you sell. Be specific about your goods or services, because taxability depends on what the product or service actually is.
- Answer the bond question carefully. The Comptroller may require a bond or other security before issuing the permit. If it does, it will send you instructions. Do not ignore that letter, because the permit can be delayed until you respond.
- Submit before your first taxable sale. Keep a copy of your submission and confirmation for your records.
- Wait for the permit and the filing letter. Processing typically takes two to three weeks, but that is an estimate, not a guaranteed turnaround. The Comptroller will notify you by letter whether you file monthly or quarterly.
- Begin collecting tax. Once you have the permit, charge the correct combined rate for each sale and keep your records so you can file on schedule.
Cost and Timing at a Glance
| Item | What to expect | Notes |
|---|---|---|
| Application fee | None listed in the AP-220 instructions | The permit is issued at no charge |
| Processing time | Typically two to three weeks | An estimate, not a guaranteed date |
| Bond or security | Only if the Comptroller requires it | Amount is set by the Comptroller; confirm with the agency |
| Filing frequency | Monthly or quarterly | Assigned by letter from the Comptroller |
Because the Comptroller sets the bond amount and the filing frequency for each account, do not plan your budget or your reporting calendar around a guess. Confirm both on the Comptroller's site or by phone once you apply.
Texas Sales Tax Rates You Will Collect
Texas has a 6.25 percent state sales tax rate. Cities, counties and some special districts can add local sales tax of up to 2 percent, so the maximum combined rate is 8.25 percent.
| Component | Rate |
|---|---|
| State sales and use tax | 6.25% |
| Local sales tax (cities, counties, special districts) | Up to 2% |
| Maximum combined rate | 8.25% |
Your actual rate depends on the address where the sale is made, so many sellers will charge less than 8.25 percent. Check the rate for each location with the Comptroller through comptroller.texas.gov/taxes/ before you set up your point of sale system.
The Texas Tax ID Number: What People Mean by It
Searches for a texas tax id number, a texas state tax id or a texas tax id usually mean the identifier the state uses for your tax account. The Comptroller assigns that number to your sales and use tax account. The exact label, format and location of the number on your permit or correspondence are set by the Comptroller, so confirm them on the agency's site before you use the number on a form, invoice or vendor application.
Keep three numbers separate in your records:
- Your Texas sales tax account number, assigned by the Comptroller when your permit is set up.
- Your federal EIN, issued by the IRS, if you have one.
- Your Texas entity filing number, which comes from the Texas Secretary of State if you formed an LLC, corporation or other registered entity. Your LLC Certificate of Formation costs $300 and does not by itself register you for sales tax.
Texas does not issue a separate state business license number, so a number from the Secretary of State or a county clerk is not a substitute for your sales tax account.
Other Texas Obligations That Often Come Up Alongside the Permit
A sales tax permit is one piece of the picture. Here is how the other main Texas obligations fit in:
- No state income tax. Texas has no personal income tax and no corporate income tax. Businesses instead pay the franchise tax.
- Franchise tax. The Comptroller administers this privilege tax. For the 2026 and 2027 report years, the no tax due revenue threshold is $2,650,000. Entities at or below that total revenue owe no tax, but they must still file a Public Information Report, which is due May 15 each year to the Comptroller. Above the threshold, the rate is 0.375 percent for retail and wholesale entities and 0.75 percent for all other entities, with a 0.331 percent EZ Computation rate for entities under $20 million in total revenue.
- Assumed name certificates. If you do business under a name other than your legal name, the filing depends on your structure. LLCs, corporations and other registered filing entities file a $25 Assumed Name Certificate with the Texas Secretary of State. Sole proprietors and general partnerships file with the county clerk in each county where they maintain a business office or conduct business, and county fees vary.
- Counties license nothing else. Apart from the assumed name filing by sole proprietors, counties do not issue general business licenses. Your city or county may still require a specific license or permit for certain trades or activities, so check with the local government where you operate.
Texas has no statewide general contractor or roofing license. If your business falls under a trade that requires a license, confirm the requirement with the agency that governs that trade.
Common Mistakes to Avoid
- Selling before the permit is in place. Apply before your first taxable sale. Waiting until you have revenue to apply creates a compliance gap.
- Assuming a home business is exempt. If you receive orders at home, that location is a place of business.
- Treating the LLC filing as the sales tax registration. Forming an LLC with the Texas Secretary of State does not register you to collect sales tax.
- Ignoring the Comptroller's letters. A bond request or a filing frequency notice needs a response or action on your part.
- Using one rate everywhere. Local rates vary, so charging a flat 8.25 percent without checking the location can over- or under-collect.
- Mixing up the permit and a resale certificate. Your permit lets you collect tax. A resale certificate is something a buyer gives you.
Getting Help
If your business has several locations, sells both taxable and exempt products, operates across state lines, or has an unusual structure, talk to a qualified CPA or tax attorney before you apply. The Comptroller can answer questions about your permit and filing requirements. For free, practical help with business planning, the Texas Small Business Development Center Network offers advising at sbdctexas.org.
For the official application and rules, start with the Texas Secretary of State at sos.state.tx.us for entity filings and the Comptroller at comptroller.texas.gov/taxes/ for everything related to sales tax and franchise tax.
Disclaimer: This article is informational only. It is not legal, tax or accounting advice, and reading it does not create an attorney-client or CPA-client relationship. Fees, processing times and rates can change. Confirm current requirements with the Texas Comptroller of Public Accounts and consult a qualified attorney or CPA before making decisions about your business.