What Form 01-156 Is For
Texas Form 01-156 is the Use Tax Return designed for individuals and businesses who don't hold a Texas Sales and Use Tax Permit but need to report and pay tax on taxable items they purchased without paying Texas sales tax. Use tax complements sales tax and applies when you store, use, or consume tangible personal property or taxable services in Texas.
Think of use tax as the flip side of sales tax. When you buy something from an out-of-state retailer who doesn't collect Texas tax—whether through an online marketplace, catalog, or while traveling—you're responsible for paying the equivalent tax directly to the Texas Comptroller of Public Accounts. This levels the playing field between Texas retailers who must collect sales tax and out-of-state sellers who may not.
Common scenarios requiring Form 01-156 include purchasing furniture from an out-of-state online retailer, buying taxable items during international travel (such as goods from Mexico), or acquiring equipment from another state for use in your Texas business. The form captures the purchase price, applicable tax rates, and any credits for taxes already paid to other jurisdictions. Texas Comptroller
If you already have a Texas sales and use tax permit, you cannot use Form 01-156. Instead, permitted businesses report use tax on their regular Texas Sales and Use Tax Return under "Taxable Purchases." Form 01-156 serves only nonpermitted purchasers—typically individuals, occasional buyers, and businesses without sales tax obligations.
When You’d Use Form 01-156
Filing Timing Based on Tax Amount
The timing for filing Form 01-156 depends on how much use tax you owe during the calendar year. According to Texas Comptroller guidance, if you owe less than one thousand dollars in use tax during a calendar year, you must file and pay by January 20 of the following year. This gives smaller purchasers a convenient annual filing window.
However, once you reach or exceed the one thousand dollar threshold in accumulated use tax owed within a single calendar year, the rules change. You must file Form 01-156 and pay the tax due by the 20th of the month following the month when you crossed that threshold.
Example Scenario
For example, if you purchased an untaxed item in March owing two hundred fifty dollars in use tax, you can wait until the following January to file. But if you buy another item in September owing an additional eight hundred dollars—bringing your year-to-date total to one thousand fifty dollars—you must file by October 20th.
Late Filing and Penalties
Late filings trigger statutory penalties. If you file and pay 1–30 days late, Texas assesses a 5 percent penalty on the tax due. After 30 days, the penalty jumps to 10 percent. If you fail to respond to a Notice of Tax Due, an additional 10 percent penalty applies, bringing total penalties to 20 percent. Interest begins accruing on the 61st day after the due date at a variable rate set annually. Texas Comptroller
Correcting Errors (No Official Amended Form)
Texas doesn't technically have an "amended" Form 01-156 for correcting errors on previously filed use tax returns. If you discover a mistake—such as underpaying tax or miscalculating the purchase amount—you should file a new Form 01-156 with the correct information and pay any additional tax owed immediately to minimize penalties and interest. Including a note explaining the correction can help the Comptroller's office properly credit your account.
Key Rules or Details for 2017
Use Tax Rates
Understanding use tax rates is essential. The state use tax rate is 6.25 percent, matching the state sales tax rate. However, depending on where you store, use, or consume the item in Texas, you may owe up to an additional 2 percent in local use taxes. The total combined maximum rate reaches 8.25 percent.
You can determine your exact local tax obligation using the Texas Comptroller's Sales Tax Rate Locator tool.
Credit for Taxes Paid to Other States
One of the most important provisions is the credit for taxes paid to other states. If you purchased an item and paid sales or use tax to another state, Puerto Rico, or a U.S. territory, Texas allows a credit against your use tax liability.
For example, if you bought equipment in Oklahoma and paid 4 percent sales tax there, but your Texas location has an 8 percent combined rate, you'd owe 4 percent to Texas. Texas Comptroller
Eligibility Restrictions
Form 01-156 cannot be used if you hold a Texas sales and use tax permit. Permitted taxpayers must report use tax on their regular returns.
Responsibility for Reporting
You're responsible for determining your use tax liability. Maintain records of out-of-state purchases, invoices showing no Texas tax collected, and documentation of taxes paid to other jurisdictions.
Step-by-Step (High Level)
Step 1: Access the Form
Start by downloading Form 01-156 or filing online through Webfile.
Step 2: Enter Identification Information
Enter your name, mailing address, and Social Security number or FEIN.
Step 3: Describe the Purchase
Be specific about items purchased, including date and seller details.
Step 4: Calculate Purchase Price
Determine the total purchase amount before taxes.
Step 5: Apply the Correct Tax Rate
Use the Sales Tax Rate Locator to find your combined rate.
Step 6: Calculate Use Tax Due
Multiply purchase price by tax rate to determine gross tax.
Step 7: Apply Credits
Subtract any tax paid to other jurisdictions.
Step 8: Complete Payment Section
Indicate payment method and finalize totals.
Step 9: Sign and Submit
Sign, date, and submit via mail or electronically. Texas Comptroller
Common Mistakes and How to Avoid Them
Not Reporting Use Tax
Many taxpayers don’t realize they owe use tax. Track purchases carefully.
Incorrect Tax Rate Calculation
Failing to include local tax rates leads to underpayment.
Missing Credits
Forgetting to claim taxes paid to other states results in overpayment.
Misunderstanding the Threshold Rule
The one thousand dollar rule is cumulative—not per transaction.
Using the Wrong Form
Permitted taxpayers should not use Form 01-156.
Poor Recordkeeping
Maintain receipts, invoices, and documentation for audit protection.
What Happens After You File
Processing Your Return
The Comptroller processes your return and posts payment. Electronic filings are faster.
Confirmation and Documentation
Electronic filers receive confirmation. Paper filers should allow several weeks.
Notices and Corrections
If issues arise, you may receive notices requesting clarification or payment.
Enforcement Actions
Failure to comply can lead to penalties, liens, or legal action. Texas Comptroller
Audits
The Comptroller may audit your use tax compliance.
Refund Requests
If you overpaid, you can request a refund within four years.
FAQs
Do I owe Texas use tax on every online purchase?
Not necessarily. You owe use tax only if the seller didn't collect Texas sales tax and the item is taxable in Texas. Many major online retailers now collect Texas tax at checkout. If your receipt shows tax collected, you’re done. If not, evaluate whether the item is taxable. Exempt items like groceries and prescription medicines do not trigger use tax.
What if I paid sales tax to another state?
Texas allows a credit for taxes paid to other jurisdictions. Calculate your Texas use tax and subtract the amount already paid. If you paid equal or higher tax elsewhere, you may owe nothing. Keep documentation as proof.
Can I file Form 01-156 online?
Yes. The Webfile system allows electronic filing and payment, offering faster processing and immediate confirmation.
What happens if I miss the January 20 deadline?
Late filing triggers penalties—5 percent within 30 days, 10 percent after. Interest begins on the 61st day. File as soon as possible to reduce penalties. Texas Comptroller
I have a Texas sales tax permit. Should I file this form?
No. Use Form 01-156 only if you do not have a permit. Permitted taxpayers report use tax on regular returns.
How do I calculate local tax rates?
Use the Sales Tax Rate Locator and enter your full address. Rates vary by location.
What items are exempt from use tax?
Common exemptions include groceries, prescription medications, manufacturing equipment, and resale items. Verify eligibility before claiming exemptions. Texas Comptroller
