NSNexus by State

Texas E-commerce Sales Tax Nexus Guide — 2026

Updated

If your E-commerce business sells $500,000 into Texas in a calendar year, you have economic nexus and must register, collect, and remit Texas sales tax.

E-commerce sales tax basics in Texas

For a direct-to-consumer store (Shopify, WooCommerce, BigCommerce, or custom) shipping to Texas buyers, the economic nexus trigger is $500,000 in TX-destination revenue (effective 2019-10-01). Crossing that bar obligates registration, collection, and periodic filing.

Once registered, charge 6.25% state tax plus the applicable local rate — averaging 1.94% across Texas but varying by the buyer's shipping ZIP on most tangible personal property. Digital products, subscriptions, and professional services have different treatment — see the Texas SaaS page if you sell software or digital goods.

Registration + collection checklist

  1. Register with the Texas Department of Revenue for a sales tax permit.
  2. Configure your cart platform to collect tax at the destination rate. Enable TX in your tax settings.
  3. Charge the combined state + local rate at the customer's delivery address (most states source to ship-to, not ship-from).
  4. File returns on the cadence your DOR assigns (monthly, quarterly, or annually).
  5. Track your Texas-sourced revenue monthly so you know when you're approaching or below threshold for the next period.

Common mistakes e-commerce sellers make in Texas

  • Using origin-based rates (your HQ state's rate) instead of destination rates. Texas sources to the buyer's ship-to address — charge the TX rate, not your home state's.
  • Counting marketplace sales toward the Texas threshold. Amazon, Etsy, and eBay sales are usually excluded in Texas; check the specific rule before adding them to your nexus-tracking spreadsheet.
  • Waiting until year-end to register. If you cross $500,000 mid-year, you must begin collecting on sales made after the threshold-crossing date — back-tax exposure grows until you register.
  • Forgetting to file zero returns once registered. Missing filings trigger penalties even when you owe no tax.

Texas nexus note

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.

What to do next

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.

Frequently asked questions

What is Texas's e-commerce sales tax in 2026?
Texas's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $500,000 in Texas-destination revenue. Charge the 6.25% state rate plus any applicable local rate at the buyer's ship-to address.
Do I collect sales tax on every Texas order?
You collect Texas sales tax once you cross the economic nexus threshold ($500,000). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in Texas).
What rate do I charge for Texas e-commerce sales?
6.25% state rate, plus any applicable local rate at the customer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable TX in tax settings.
Do I need to collect sales tax on shipping in Texas?
It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check Texas's specific policy or use a tax service that encodes the rule.

Sources

date_retrieved: 2026-05-25