How to register for a sales tax permit in Texas

Create a Texas Webfile Login

After Sidr Tax applies for a sales tax permit on your behalf, you will find your sales tax ID and filing frequency in the registration details. You will also receive your Texas Sales Tax ID, filing frequency, and WebFile number in the mail.

Once you receive your sales tax ID, filing frequency, and WebFile number in the mail, you can create a login at the Texas Webfile to access your sales tax account.

Franchise Tax

The Texas franchise tax is a privilege tax imposed on each taxable entity formed, organized or doing business in Texas.

According to the Texas Comptroller website: A foreign (i.e., out-of-state) taxable entity with annual gross receipts of $500,000 or more from business in Texas has an Economic Nexus even if the entity has no physical presence in this state. This economic nexus provision applies to reports due on or after January 1, 2020. So if you are a remote seller with a sales tax nexus, chances are you also have Nexus for Franchise Tax.

The Texas franchise "margin" tax exemption (the no-tax-due threshold) has increased to $2.47 million for reports originally due on or after January 1, 2024. Taxable entities with annualized total revenue at or below the no-tax-due threshold will no longer be required to file a no-tax-due report (Form 05-163), but must still file Form 05-102, "Public Information Report," or Form 05-167, "Ownership Information Report".

Since Franchise Tax is a form of corporation tax, please work with your accountant/CPA to set up the filing plan. You can find relevant tax forms on this page. You will receive the Texas Franchise Tax ID and WebFile number in the mail. You can use this information to set up online access on Texas Webfile.

Want to setup Autofile?

Learn more about the Autofile feature here.
Learn more about the Texas-specific Autofile requirements here.

Updated on: 07/31/2024