What Texas Form 01-156 Is For
Texas Form 01-156, the Texas Use Tax Return, is a specialized tax document designed for individuals and businesses that purchase taxable goods and services from sellers who don't collect Texas sales tax. Use tax is complementary to sales tax and applies when you store, use, or consume tangible personal property or taxable services in Texas, but no Texas tax was collected at the time of purchase. The 6.25 percent state rate applies statewide, with local jurisdictions adding up to 2 percent in additional use tax depending on where you use or store the item.
This form is exclusively for nonpermitted purchasers—people or businesses that don't hold a Texas Sales and Use Tax Permit. If you already have a permit, you must report use tax on your regular sales and use tax return instead (Item 3, Taxable Purchases), not on Form 01-156. Common scenarios requiring this form include buying items through online auctions or websites from out-of-state sellers who don't charge Texas tax, purchasing goods in Mexico or other countries and bringing them back to Texas, or receiving gifts of taxable items from out-of-state sources. The form helps Texas ensure tax fairness, preventing Texas-based businesses from being undercut by untaxed out-of-state purchases.
When You’d Use Texas Form 01-156
Filing Deadlines Based on Tax Amount
Filing deadlines for Form 01-156 depend on how much use tax you owe during the calendar year. If you owe less than $1,000 in use tax for all your untaxed purchases combined, you have until January 20 of the following year to file and pay.
However, once your cumulative use tax liability reaches $1,000 or more within a calendar year, you must file and pay by the 20th of the month following the month you crossed the threshold.
Late and Amended Returns
If you discover errors after filing, prepare a new Form 01-156, clearly mark it "AMENDED RETURN" at the top, include an explanation of the changes, and submit it to the Comptroller's office.
Late returns face penalties:
- 5 percent if 1–30 days late
- 10 percent if over 30 days late
- Up to 20 percent total after notice
Interest begins accruing on the 61st day after the due date.
Key Rules or Details for 2025
Who Can Use the Form
Only nonpermitted taxpayers can use Form 01-156. If you hold a Texas Sales and Use Tax Permit, you must report use tax on your regular return.
When You Owe Use Tax
You owe use tax only when Texas tax was not collected. If tax was already charged, no additional filing is required for that purchase.
Credit for Taxes Paid to Other States
Texas allows credits for legally paid taxes to other states, Puerto Rico, or U.S. possessions. This reduces your Texas liability.
Local Use Tax Rules
Local tax applies based on where the item is used or stored. Combined rates can reach 8.25 percent.
Filing and Documentation Requirements
- Electronic filing may be available in certain cases
- Maintain receipts, invoices, and tax payment proof
- Keep records for audit purposes
Step-by-Step (High Level)
1. Gather Documentation
Collect all records of untaxed purchases:
- Receipts
- Invoices
- Shipping records
- Proof of tax paid elsewhere
2. Calculate Total Use Tax
Multiply each taxable purchase by the applicable combined tax rate (state + local).
3. Obtain the Form
Download Form 01-156 from the Texas Comptroller’s website or request a copy.
4. Complete the Form
Provide:
- Name and address
- SSN or EIN
- Total taxable purchases
- Tax due
- Credits for taxes paid elsewhere
5. Review Calculations
Double-check all entries for accuracy and completeness.
6. Submit the Form and Payment
Mail to:
Texas Comptroller of Public Accounts
P.O. Box 13528
Austin, TX 78711-3528
Include payment and retain copies for at least four years.
Common Mistakes and How to Avoid Them
Using the Wrong Form
Permitted taxpayers should not use Form 01-156. Always confirm your filing status.
Assuming No Tax Is Owed
If a seller doesn’t collect tax, you are still responsible for reporting and paying use tax.
Miscalculating Local Tax
Use tax is based on where the item is used—not where it was purchased.
Missing Eligible Credits
Failing to claim credits for taxes paid to other states leads to overpayment.
Ignoring the $1,000 Threshold
Crossing this threshold changes your filing deadline. Track your total throughout the year.
Poor Recordkeeping
Lack of documentation can result in incorrect filings and audit issues.
What Happens After You File
Processing and Review
The Texas Comptroller reviews your return for:
- Accuracy
- Completeness
- Correct tax calculations
Audit Possibility
Returns may be audited within four years. You must provide supporting documentation if requested.
Underpayment Consequences
If errors are found:
- You’ll receive a billing notice
- Additional penalties and interest will apply
Collection Actions
Failure to pay may result in:
- Tax liens
- Asset seizure
- Legal action
Overpayment and Refunds
You may file a refund claim within four years. Approved refunds include applicable interest.
FAQs
What types of purchases require me to file Form 01-156?
You must file when you buy taxable items from sellers who don’t collect Texas sales tax and you use or store those items in Texas. This includes online purchases, out-of-state shopping, international purchases, and certain taxable services. Items originally bought for resale but later used personally also trigger use tax.
Do I owe use tax on all online purchases from out-of-state sellers?
Not always. Many online retailers already collect Texas tax. If tax was charged and shown on your receipt, no additional use tax is owed. However, if the seller did not collect tax, you are responsible for reporting and paying it.
Can I claim a credit for taxes paid to other states?
Yes. Texas allows credits for taxes legally paid to other states, Puerto Rico, or U.S. territories. This reduces your Texas use tax liability. Documentation is required to support the claim.
What happens if I don’t file Form 01-156?
You may face penalties, interest, and enforcement actions. Penalties range from 5–10 percent plus a $50 late fee. Continued noncompliance can lead to liens, asset seizure, or legal consequences.
How do I determine the correct local use tax rate?
Use the Texas Comptroller’s Sales Tax Rate Locator tool. The correct rate depends on where you use or store the item—not where it was purchased.
Can I file Form 01-156 electronically?
In some cases, yes—especially for specific purchases like off-highway vehicles. Otherwise, the form is typically filed by mail. Check the Comptroller’s website for available electronic options.
Do I owe use tax on gifts?
Generally, no. If you didn’t pay for the item, there’s no tax base. However, if you reimbursed the sender, it may be treated as a taxable purchase.
Additional Resources
- Texas Comptroller Use Tax Information
- Texas Sales and Use Tax Forms
- Sales Tax Rate Locator
- Contact Texas Comptroller
