Texas Remote Sellers and the Single Local Use Tax Rate

Texas allows qualifying remote sellers to simplify local tax collection by electing a single local use tax rate instead of collecting destination-based local sales and use taxes. This option is designed to reduce compliance complexity for sellers who do not have a physical presence in Texas.

The single local use tax rate is administered by the Texas Comptroller of Public Accounts and applies only to remote sellers that meet Texas nexus requirements.

Who Is Considered a Remote Seller in Texas?

A remote seller is generally a seller that does not have a physical location in Texas but has established economic nexus through sales into the state. Remote sellers may be required to collect Texas sales and use tax if they exceed the applicable sales threshold.

Remote sellers may also be required to collect Texas sales and use tax based on their economic activity in the state. For a broader explanation of how economic nexus applies to out-of-state sellers, see our guide on economic nexus and remote sellers.

Remote sellers may choose between:

• Collecting destination-based local sales and use tax rates, or
• Electing the single local use tax rate

What Is the Single Local Use Tax Rate?

The single local use tax rate is an optional, uniform local tax rate that remote sellers may collect instead of calculating and applying local tax rates based on the customer’s location.

This rate is:

• Calculated and published by the Texas Comptroller
• Applied uniformly to all Texas taxable sales made by the remote seller
• Used only for local use tax purposes

The single local use tax rate is determined annually by the Comptroller using statewide local tax data. Sellers should always confirm the current rate using official guidance.

The single local use tax rate applies only to local use tax. For a broader explanation of how Texas use tax works, including forms, rates, and reporting requirements, see our
Texas use tax guide.

Official guidance: Texas Comptroller – Remote Sellers and Sales Tax

Single Local Use Tax Rate vs. Destination-Based Local Rates

Remote sellers that do not elect the single local use tax rate must collect local tax based on the destination of the sale. This requires identifying the correct local tax jurisdictions for each transaction.

By contrast, the single local use tax rate:

• Uses one uniform local rate for all Texas sales
• Reduces the need to track individual city, county, and special district rates
• May simplify filing and reporting for remote sellers

The Texas state sales and use tax rate applies in addition to either local option.

Who Cannot Use the Single Local Use Tax Rate?

The single local use tax rate is available only to qualifying remote sellers. It is not available to:

• Sellers with a physical place of business in Texas
• Marketplace providers that are required to collect tax on behalf of sellers

How to Elect or Revoke the Single Local Use Tax Rate

Remote sellers must formally notify the Texas Comptroller if they wish to elect or revoke the single local use tax rate option.

Official election and revocation form:

Form 01-799 — Election or Revocation of Single Local Use Tax Rate (PDF)

Once elected, the single local use tax rate generally applies to all taxable Texas sales made by the remote seller until the election is revoked.

Reporting and Filing Requirements

Remote sellers report the single local use tax rate on their Texas Sales and Use Tax Return, along with the applicable state tax.

Official forms and filing information:

Texas Sales and Use Tax Forms and Instructions

Why Texas Offers a Single Local Use Tax Rate

Texas has hundreds of local taxing jurisdictions. The single local use tax rate option helps remote sellers comply with Texas tax law while reducing administrative burden and complexity.

Final Note

Texas sales and use tax rules for remote sellers may change over time. Remote sellers should regularly review official guidance issued by the Texas Comptroller of Public Accounts to ensure proper compliance.