Filing your Texas sales tax return is simple with the state’s online system. You can file and pay directly through Webfile eSystems, as long as your business is registered to collect and remit sales tax.
This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Texas’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents you need to file a sales tax return in Texas.
- Texas Taxpayer Account Number (Sales and Use Tax Permit) – You’re required to provide your Texas sales and use tax account number to file your sales tax return. Once your registration with the Texas Comptroller is approved, you should receive this documentation electronically or via mail. This number can be found on your Texas Sales and Use Tax Permit.
- Texas Comptroller Account Log-in Details – The primary way to file your Texas sales tax return online is by logging onto your Texas Comptroller account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
- Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you still need to file a return.
- Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
- Taxable Purchases – Verify the total amount of taxable purchases your business made for its own use within the filing period, on which sales tax was not paid to the seller. This includes both in-state and out-of-state transactions.
- Local Sales Tax Report – Generally, Texas requires businesses to file a local sales tax report as well. This means you must list all your sales in each city, county, or other local jurisdiction in Texas.
- Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
- Filing Frequency Schedule – The state assigns a specific due date for every registered business. The Texas Comptroller of Public Accounts will notify you of your assigned filing frequency after you register. This schedule is based on your total amount of tax due.To find out your designated schedule, you can check your welcome letter from the Comptroller or log into your online Webfile account.
Step-by-Step: How to File Texas Sales Tax Online
Step 1. Go to the state sales tax portal website – eSystems Webfile. Step 2. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify). Step 3. Enter your Account Credentials: Log in using your username and password. Check your shared email or phone number, and input the OTP when applicable.
Step 4: Under the Assigned Tax/Fee section, click Sales and Use Tax.
Step 5: In the File and Pay Taxes section, select File Original Return, then click Continue.
Step 6: Choose the period you are filing, then click Continue.
Step 7: Enter the total sales made in Texas, including the taxable sales based on your ecommerce sales tax report.
Step 8: Review the summary of your return. After that, click Continue.
Step 9: Enter your bank information and select the payment date, then click Agree and Continue.
Step 10: After confirming the payment details, click “Submit Payment.”
Step 11: Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common practice.
Helpful Tip: You can always click on “Save and Submit Later” to avoid losing your progress. This tip helps if internet issues, website downtime, or other disruptions interrupt the filing process.
NOTE: Businesses must pay electronically if they owe over $500,000 in taxes.
Due Dates
In Texas, there are 3 filing schedules assigned to businesses.
| FREQUENCY | REPORTING PERIOD | DUE DATE |
| Monthly | Monthly | 20th day of the month following the reporting period |
| Quarterly |
|
|
| Annually | January 1 – December 31 | Reports for the previous year’s sales are due annually every January 20th |
Due Date Filing Extensions
In case your return could not be filed on time, there’s an option to request a filing extension. The Texas Comptroller may grant a reasonable extension period not exceeding 45 days. To qualify for an extension, you must request it in writing and remit at least 90 percent of the tax estimated to be due by the original due date. Penalties will not apply if the extension is granted, but interest will still accrue on any unpaid tax from the original due date. Victims of natural disasters are qualified for a maximum of 90 days extension period. As instructed in the Texas Tax Code § 111.057, you can request an extension by writing a formal letter. You must state the reason why you need an extension. Once the state grants an extension, it will begin to accumulate interest and penalties on the unpaid taxes after the extension period expires.Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Texas, you can claim a 0.5% discount on the amount of tax that you timely reported and paid. In addition to the general timely filing discount, Texas also offers further accommodation to early filers and specific qualified taxpayers.- Prepayment Discounts: Texas allows monthly or quarterly prepayments. You’re eligible for a 1.25% discount for prepaying, in addition to the 0.5% timely filing discount.To qualify, you must prepay a reasonable estimate of your sales tax liability by the 15th of the month (for monthly filers) or by the 15th of the second month of the quarter (for quarterly filers).A “reasonable estimate” is at least 90% of the tax due for the current period or 100% of the tax paid for the same period in the previous year.
- Timely Filing by Mail Delivery: As long as your report is sent by mail and is postmarked on or before the due date, the report is considered on time. If you postmark your report after the required filing date, the state will consider it late and may subject it to penalties.The Comptroller may, however, issue penalty credits or a refund if the late postmark was due to a delay by the postal service and not the taxpayer. This rule is declared in the Texas Tax Code § 111.054.
- Reasonable Diligence: While the Texas Tax Code § 111.055 provides a provision for ‘reasonable diligence,’ this is a very specific legal standard and does not automatically clear you from all penalties for a late return. In general, late-filed returns are subject to penalties and interest.For late filing, a $50 penalty is assessed for each late report, regardless of whether tax is due. Under specific circumstances, you may be able to request a penalty waiver from the Comptroller.
Filing Amended Returns
If you filed an inaccurate report (e.g., miscalculated taxes, missing information, etc.), you can amend your return. The process varies depending on whether you owe more tax or are due a refund. If you owe more tax, you can amend your return online by following these simple steps:- Step 1: Follow the same procedure as filing an original return. This means you must file the amended return through the eSystems Webfile page.
- Step 2: After reviewing credits, you can now update the details on your original sales tax return.
- Step 3: Enter the correct information in the required fields. After that, make sure the indicated total sales, taxable sales, and taxable purchases are now fully accurate. You can also change the previous data you entered for the local taxable sales.
- Step 4: Once you finish filling out everything, you can review the return one more time. You can edit each section in case you missed updating other information.
- Step 5: Now that you have applied the changes, you must pay the additional underpaid taxes on your amended return.
- Step 6: Submit your return and select your payment method. After that, once the state processes the payment, your amended return should be complete.
Refunds
If you overpaid your taxes on your sales tax return, the Texas Comptroller allows you to file a refund claim. This rule is declared in Texas Tax Code § 111.107. However, you must ensure that your claim falls within Texas’s 4-year statute of limitations from the date the tax was originally due and payable. Before claiming a refund, prepare the following supporting documents or information:- Invoice copies
- Dated transactions
- Item descriptions and the exact sale amount
- The taxpayer overpaid taxes (reason for the refund)
- Name of the buyer or seller involved in the transaction
- General ledgers, sales records, or journals, proof of payments
- Provide the names of all the local jurisdictions where you remitted the tax
- Resale exemption or other exemption certificates used in the transaction
Step-by-Step Guide to Filing a Claim
- Step 1: Understand the Statute of Limitations. Ensure your claim is within the defined 4-year period in Texas’s statute of limitations.
- An extension may be allowed through an Agreement to Extend Period of Limitation. The state typically issues this agreement during an audit.
- After a complete audit of your records, the Texas Comptroller may automatically extend the time allowed to claim a refund.
- The Texas Comptroller is temporarily suspending the limitation as long as they are undergoing a review of a refund claim.
- Step 2: Complete the Official Claim Form. Download the Form 00-957 – Texas Claim for Refund, official document. Complete the form and provide all the necessary details to support your refund claim.
- Step 3: Prepare Supporting Forms (If Applicable). If the person filing the claim is a representative (such as an accountant or attorney), they must submit an additional separate form, which is the Form 01-137, Limited Power of Attorney.
- Step 4: Indicate the Details of the Overpayment. Ensure you indicate the date and period from which the overpaid taxes occurred.
- Step 5: Submit the Claim. Submit the claim form by emailing it to refund.request@cpa.texas.gov. You also have the option to print and mail the form to the following address:Texas Comptroller of Public Accounts | Attn: Sales and Motor Vehicle Tax Refunds | 111 E. 17th Street | Austin TX 78774-0100
Filing Zero Returns in Texas
Texas requires taxpayers to file returns even if they have no taxable sales to report. To do so, filers have the option to utilize the following:- File through the eSystems Webfile – Follow the same steps as filing a normal return. The only difference is that you can indicate “0” (zero) on the fields asking for your sales records.
- Use TeleFile – This is Texas’s recommended option for any taxpayers with no records to report in the current filing period. You’ll file via phone call and provide the necessary details to complete the return. Typically, Telefile is available anytime throughout the week.
Other Filing Methods in Texas
If you’re having difficulties filing your Texas sales tax return online, you can try other options.- File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
- File by Mail – Electronic filing is required for most taxpayers, including those who have a prior year’s total tax liability of $50,000 or more.However, paper filing is permitted only for taxpayers who have not been notified by the Comptroller’s office that they are required to file electronically or under specific, limited circumstances.If you are permitted to file by mail, you will receive a pre-printed form from the Comptroller. Downloaded forms from the Texas Comptroller’s website are generally for reference or for specific situations like amended returns, but the official pre-printed form is what should be used for a regular return.
- File through Texas Electronic Data Interchange (EDI) – This software is designed for businesses that report a large variety of tax data. To set this up, you can download the application here and see the additional instructions.