Texas Sales Tax Nexus & Economic Nexus Threshold (2026)
Reviewed by Nexus by State research team using official state tax sources. Last reviewed .
Guide content last reviewed: 2026-06-19; state source data last retrieved: 2026-05-25
Economic nexus triggers at $500,000 in sales delivered to Texas customers.
6.25% statewide sales tax rate, with an average combined state and local rate of 8.19%.
See how Texas’s numbers stack up against every other state in our sales tax rates and economic nexus thresholds by state reference table.
| Economic nexus threshold | $500,000 No transaction count threshold |
|---|---|
| State sales tax rate | 6.25% Average combined rate (state + local): 8.19% |
| Marketplace facilitator law | Yes Amazon, Etsy, eBay collect and remit on your behalf |
| Effective date | 2019-10-01 |
| Department of Revenue |
Check Texas nexus with your numbers
If your sales are close to the Texas threshold, run the sales tax nexus calculator with your revenue and transaction count before you register. The calculator applies the same state threshold data shown here and can compare Texas against every other state where you sell.
How Texas nexus works
Texas sales tax nexus and SaaS taxability: economic nexus applies to remote sellers with $500,000 or more in total Texas revenue during the preceding twelve calendar months. After crossing that safe harbor, Texas requires a permit and sales/use tax collection no later than the first day of the fourth month after the threshold-crossing month. Texas treats data processing as a taxable service and the Comptroller says data processing providers include software-as-a-service sellers and application service providers; 20% of a data-processing charge is exempt, so SaaS treated as data processing is generally taxed on 80% of the invoice amount. Marketplace-only sellers whose marketplace provider certifies Texas collection generally do not need a Texas tax permit, but sellers must keep marketplace-sales records for at least four years.
Filing frequency
Filing frequency in Texas depends on your sales tax liability. Higher-volume sellers file monthly; lower-volume sellers typically file quarterly or annually. The state will assign a frequency when you register.
Marketplace facilitator law
Yes, Texas has a marketplace facilitator law. Sales you make through Amazon, Etsy, eBay, Walmart, and other marketplaces are collected and remitted by the marketplace — you do not need to collect tax on those transactions yourself, though you may still need to register.
Texas sales tax by topic
- Texas · E-commerceGeneral e-commerce sales tax rules
- Texas · ShopifyShopify-specific sales tax guidance
- Texas · AmazonAmazon FBA and marketplace sales tax
- Texas · SaaSSoftware-as-a-service sales tax rules
- Texas · ThresholdsEconomic and transaction nexus thresholds
- Texas · FilingFiling frequency and procedures
- Texas · Marketplace FacilitatorMarketplace facilitator law for the state
- Texas · DropshippingDropshipping sales tax rules and resale certificates
- Texas · Digital ProductsSales tax on digital downloads, eBooks, courses, streaming
Industry-specific sales tax guides
Whether a sale is taxable in Texas often depends on what you sell, not just where. These national guides explain how sales tax applies to common business types — then check the Texas threshold and rules above to see where you must register and collect.
- Haircut, nail, and salon sales taxWhen haircuts, nail services, and salon retail product sales are taxable.
- Restaurant and food-service sales taxPrepared-food, dine-in, and takeout taxability for restaurants.
- Food delivery sales tax (DoorDash, Uber Eats)Who collects sales tax on DoorDash, Uber Eats, and Grubhub orders.
- Digital creator and online course sales taxSales tax for influencers, course sellers, and digital downloads.
- Construction and contractor sales taxHow contractors handle sales and use tax on materials and labor.
Related states to Texas
If you sell into Texas, you likely also sell into these nearby or economically similar states. Each has its own nexus threshold and rate.
Frequently asked questions
- Does Texas have sales tax?
- Yes. Texas has a 6.25% statewide sales tax rate, plus an average local rate of 1.94%. Check the exact rate at the customer's delivery address before charging. Source data last retrieved 2026-05-25.
- Do I have to collect sales tax in Texas?
- You must collect Texas sales tax if your economic nexus threshold is met: $500,000 in sales to Texas customers.
- What is Texas's sales tax rate?
- Texas's base state rate is 6.25% plus an average local rate of 1.94%. Always check the exact rate at the customer's delivery address before charging.
- Does Texas have a marketplace facilitator law?
- Yes. Marketplaces like Amazon, Etsy, and eBay collect and remit Texas sales tax on behalf of third-party sellers for transactions they facilitate. Direct-to-consumer sales outside a marketplace are still your responsibility.
- What is Texas's marketplace facilitator threshold for sales tax?
- Texas applies the same threshold to marketplace facilitators as to remote sellers: $500,000 in Texas sales over the lookback period. When a marketplace exceeds the threshold, it must register and collect Texas sales tax on every facilitated sale — sellers do not collect on those marketplace transactions. Direct-to-consumer sales you make outside any marketplace still count toward your own economic nexus and remain your collection responsibility once you cross the threshold.
- When did Texas's economic nexus law take effect?
- Texas's current economic nexus rule took effect on 2019-10-01.
Sources
date_retrieved: 2026-05-25. See how we verify source checks in our Methodology & Sources.