Texas Use Tax: Forms, Rates, and Filing Requirements

Texas use tax applies when taxable goods or services are purchased without Texas sales tax being collected at the time of sale. This commonly happens with out-of-state purchases, online transactions, or items bought from sellers who are not required to collect Texas tax.

Use tax is administered by the Texas Comptroller of Public Accounts, and it is generally owed by the purchaser when sales tax was not properly collected.

What Is Texas Use Tax?

Texas use tax complements the state sales tax system. In general, it applies when taxable items are used, stored, or consumed in Texas and Texas sales tax was not paid at purchase.

Use tax may apply when:

• Sales tax was not charged at checkout (often with online or out-of-state purchases).
• Sales tax was charged at a lower rate than Texas would require.
• A business buys taxable items for resale but later withdraws items from inventory for its own use.

Official guidance: Texas Comptroller – Use Tax

Texas Use Tax Rates

The use tax rate is the same as the sales tax rate in Texas:

• State sales and use tax: 6.25%
• Local sales and use tax: local jurisdictions may impose up to 2% combined, for a maximum combined rate of 8.25%

Local use tax may apply depending on where the item is first used in Texas.

Official rate explanation: Texas Comptroller – Use Tax FAQ (Rates and Common Questions)

When Do You Owe Texas Use Tax?

You may owe Texas use tax if you purchase a taxable item and Texas sales tax is not collected. Common examples include:

• Taxable online purchases where the seller did not collect Texas tax
• Equipment, supplies, or materials purchased from out-of-state vendors
• Purchases where another state’s tax was collected, but Texas tax would be higher (a credit may apply up to the Texas amount due)

Use Tax and Remote Sellers

Remote sellers that are required to collect Texas sales and use tax may also have specific options for handling local use tax. Texas allows qualifying remote sellers to elect a single local use tax rate instead of collecting destination-based local taxes.

For a detailed explanation of this option, including eligibility and reporting rules, see our guide on Texas remote sellers and the single local use tax rate.

Texas Use Tax Forms and Where to Find Them

The right form (or filing method) depends on whether you are filing as an individual consumer or a permitted business.

Businesses: Texas Sales and Use Tax Return

Businesses that hold a Texas sales and use tax permit generally report taxable purchases (use tax due) on their regular Texas Sales and Use Tax Return.

• Forms and instructions page: Texas Sales and Use Tax Forms
• Return PDF (paper form): Form 01-114 — Texas Sales and Use Tax Return (PDF)

Individuals: Consumer Use Tax Reporting

Individuals who owe use tax (for example, from a one-time online purchase where no Texas tax was collected) can review the Comptroller’s consumer use tax guidance and reporting options.

Official consumer use tax resource: How to Report and Pay Texas Use Tax

Sales and Use Tax Permit (If You Need to Register)

Some businesses may need to register for a Texas sales and use tax permit before collecting or reporting tax. The Comptroller provides online registration and downloadable application forms.

• Online registration and permit info: Texas Online Tax Registration Application
• Permit application PDF: Form AP-201 — Texas Application for Sales Tax Permit and/or Use Tax Permit (PDF)

Filing and Payment Options

Texas encourages electronic filing and payment, and certain taxpayers may be required to file and/or pay electronically depending on amounts reported.

Official filing and payment guidance: Texas Comptroller – File and Pay

Penalties and Audit Risk

Failure to report and pay use tax can result in penalties and interest. For businesses, use tax compliance is also a common focus during Texas sales and use tax audits—especially for purchases from out-of-state vendors and items used internally.

Final Note

Texas use tax rules and rates can change, and local tax application may depend on where an item is used. For the most accurate and current information, refer to the official Texas Comptroller resources linked above.