Texas: Sales Tax Handbook
How to file your sales taxes in Texas
Once your business has a Texas sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Texas government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Texas
If the seller has an in state location in the state of Texas, they are legally required to collect sales tax at the rate of the their own location, where the sale was made, as Texas is an origin based sales tax state.
If the seller's location is out of state, and the seller has tax nexus, then the state of Texas becomes an destination based state, and must collect sales tax at the local rate of the buyer.
Sales Tax Collection Discounts In Texas
Texas allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Texas sales tax regulations
The collection discount is 0.5% of the tax that is due, in addition to 1.25% of any prepaid tax, although this does not apply to any permit holders.
Your Texas Sales Tax Filing Requirements
To file sales tax in Texas, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of Texas provides all taxpayers with two choices for filing their taxes. One option is to file online by using the TxComptroller eSystems online service, which can also remit your payment. The other option is filing manually, through the mail.
The state of Texas requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your Texas Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period. For a list of this year's actual due dates, see our calendar of Texas sales tax filing due dates.
Where To File Your Texas Sales Tax Return:
Filing Your Texas Sales Tax Returns Online
Texas supports electronic filing of sales tax returns, which is often much faster than filing via mail.E-filing is required for taxpayers who are required to pay by EFT, and is optional for other taxpayers.
Texas allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for taxpayers who have paid a total of at least ten thousand dollars in a single category of payments or taxes over the course of the prior state fiscal year, if the Comptroller can reasonably anticipate that the taxpayer will pay this amount or greater in the current fiscal year.
You can process your required sales tax filings and payments online using the official Texas WebFile website, which can be found here . You should have received credentials to access your Texas WebFile account when you applied for your Texas sales tax license.
Filing Your Texas Sales Tax Returns Offline
While it is highly recommended that you file online using the Texas WebFile website, it is possible to file your required sales tax reportings offline using Texas filing frequency, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Texas Sales Tax Filing Address: Comptroller of Public Accounts
PO Box 149354
TX 78714-9354Taxpayers may also file Texas sales tax returns by completing and mailing Form 01-114: Sales and Use Tax Return to the following address: Comptroller of Public Accounts
PO Box 149354
Please note that if you file your Texas sales taxes by mail, it may take significantly longer to process your returns and payments.
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