Texas Economic Nexus for Remote Sellers

Texas economic nexus determines when an out-of-state seller is required to collect and remit Texas sales and use tax based on the seller’s economic activity in the state rather than physical presence.

Economic nexus rules in Texas are administered by the Texas Comptroller of Public Accounts.

When Does Economic Nexus Apply in Texas?

A remote seller generally establishes economic nexus in Texas when its sales into the state exceed the state’s economic nexus threshold.

Once economic nexus is established, the seller is required to:

• Register for a Texas sales and use tax permit
• Collect Texas sales and use tax on taxable transactions
• File Texas sales and use tax returns

Remote Sellers and Texas Sales Tax Collection

Remote sellers with economic nexus must collect:

• Texas state sales and use tax
• Applicable local sales or use tax

Texas provides qualifying remote sellers with an option to simplify local tax collection by electing a single local use tax rate.

For more details, see our guide on 
Texas remote sellers and the single local use tax rate.

Economic Nexus and Use Tax in Texas

Economic nexus affects not only sales tax collection but also use tax obligations. Businesses purchasing taxable items from out-of-state vendors may owe Texas use tax.

For a broader explanation, see our guide on Texas use tax.

Official Texas Guidance

Official economic nexus and remote seller guidance is published by the Texas Comptroller of Public Accounts.

Final Note

Texas economic nexus rules may evolve over time. Remote sellers should monitor official Comptroller guidance to ensure ongoing compliance.

M. Spik

Editor
25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
Read full bio →