Texas Dropshipping Sales Tax Guide — 2026

Dropshipping into Texas raises three distinct tax questions. First, you (the retailer) have to collect and remit Texas sales tax on your retail sales if you exceed $500,000. Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Texas nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Texas applies 6.25% as the base state rate; local add-ons average 1.94%.

• If you have a Texas sales tax permit, you can usually issue your dropshipper a TX resale certificate to avoid being charged sales tax on the wholesale invoice.
• Some states (notably California, Florida, Massachusetts, Tennessee, and a few others) require the buyer to hold an IN-STATE registration before issuing a resale certificate — a home-state certificate isn't enough.
• Streamlined Sales Tax (SST) states accept the uniform Multistate Certificate; others have their own forms.

• Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
• Forgetting that your retail revenue into Texas still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
• Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

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.

Read the full Texas overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

• Texas · E-commerce
  General e-commerce sales tax rules
• Texas · Thresholds
  Economic and transaction nexus thresholds
• Texas · Marketplace Facilitator
  Marketplace facilitator law for the state