What the Form Is For
Texas Form 01-156 is the Use Tax Return designed for individuals and businesses who purchase taxable items from out-of-state sellers or bring goods into Texas without paying Texas sales tax. Use tax serves as the complementary partner to sales tax, ensuring that Texas collects the appropriate tax on items that will be stored, used, or consumed within the state, regardless of where they were originally purchased.
The form applies specifically to purchasers who do not hold a Texas sales and use tax permit. If you bought something online from an out-of-state retailer who didn't charge Texas tax, purchased items while traveling abroad and brought them back to Texas, or acquired taxable goods from any source that didn't collect Texas sales tax, Form 01-156 is your mechanism for reporting and paying that obligation directly to the Texas Comptroller's office.
Common Scenarios
- Buying furniture from an online retailer in another state
- Purchasing electronics through internet auctions from sellers without Texas permits
- Bringing back taxable items from Mexico or other countries
- Acquiring boats, aircraft, or off-highway vehicles from out-of-state dealers
The underlying principle remains simple: if you use it in Texas and didn't pay Texas tax at purchase, you likely owe use tax.
When You’d Use It (Late Filing and Amended Returns)
Filing Deadlines Based on Amount Owed
The timing requirements for Form 01-156 depend entirely on how much tax you owe.
- If you owe less than $1,000 in use tax during a calendar year, you have until January 20 of the following year to file and pay.
- If you reach or exceed $1,000, you must file and pay by the 20th day of the following month after crossing the threshold.
Example: If your cumulative purchases reach $1,100 in June, your deadline becomes July 20.
Late Filing Penalties
- 1–30 days late: 5% penalty
- Over 30 days late: 10% penalty
- After Notice of Tax/Fee Due: additional 10% (total 20%)
- Interest begins on the 61st day after the due date
Amended Returns
If you discover an error:
- Correct a copy of the original return or file a new one
- Mark “Amended Return” clearly at the top
- Sign, date, and submit
If You Underpaid
Include additional tax plus penalties and interest
If You Overpaid
Follow refund procedures from the Comptroller
Key Rules or Details for 2021
Tax Rates
- State use tax rate: 6.25%
- Local taxes: up to 2%
- Maximum combined rate: 8.25%
Location-Based Tax Rules
Tax is based on where the item is used, stored, or consumed, not where it was purchased.
Credit for Taxes Paid to Other States
- You can claim credit for legally paid taxes to other states
- Credit cannot exceed Texas tax liability
- Documentation is required
Who Cannot Use Form 01-156
- Businesses with a Texas sales and use tax permit
- These businesses must report use tax on regular sales tax returns
Resale and Exemption Rules
- Using resale certificate but not reselling → use tax applies
- Using exemption improperly → use tax applies
Step-by-Step (High Level)
1. Gather Documentation
- Receipts
- Invoices
- Bills of lading
- Customs paperwork
2. Enter Taxpayer Information
- Individuals: Social Security number
- Businesses: Tax ID
3. Calculate Total Taxable Purchases
Use purchase price excluding exempt shipping
4. Determine Tax Rate
Use Comptroller’s Sales Tax Rate Locator
5. Calculate Use Tax
Multiply total purchases by applicable tax rate
6. Apply Credits
Subtract tax paid to other states
7. Complete the Form
- Fill all fields
- Enter zero if not applicable
- Sign and date
8. Submit the Form
Mail to:
Comptroller of Public Accounts
111 E. 17th Street
Austin, TX 78774-0100
Or file online for eligible cases
Common Mistakes and How to Avoid Them
Not Knowing You Owe Use Tax
Many assume no tax applies if none was charged. That’s incorrect.
Missing the $1,000 Threshold Rule
Track purchases throughout the year to avoid surprise deadlines
Using Incorrect Tax Rates
Always verify rates using the official tool
Forgetting Credits
Claim tax paid to other states to avoid overpaying
Leaving Fields Blank
Always enter a value (even zero)
Using the Wrong Form
- Permitted businesses → use sales tax return
- Off-highway vehicles → use Form 01-163
What Happens After You File
Processing and Confirmation
- Paper filings: several weeks
- Online filings: faster with confirmation
If Filed Correctly
- Obligation is satisfied
- No further action required
If Errors Exist
- Comptroller may request clarification
- Adjustments may be issued
If You Fail to File
Possible consequences include:
- Estimated billings
- Tax liens
- Asset seizure
- License suspension
- Criminal charges
Underpayment Consequences
- Billing notices
- Accruing penalties and interest
Payment Plans
- Available case-by-case
- Account remains delinquent during repayment
Audit Risk
Frequent out-of-state purchases increase audit likelihood
FAQs
What Is Texas Form 01-156 Used For?
Texas Form 01-156 is used to report and pay use tax on taxable items purchased without Texas sales tax. This typically applies to out-of-state or online purchases where the seller did not collect tax. Individuals and businesses without a Texas sales tax permit must use this form to remain compliant.
Do I Owe Use Tax on Online Purchases?
Yes. If sales tax was not collected at checkout, you are responsible for reporting and paying use tax. This applies to purchases from out-of-state sellers, online marketplaces, and foreign retailers, unless the item is tax-exempt.
Can Businesses Use Form 01-156?
No. Businesses with a Texas sales tax permit must report use tax on their regular sales tax returns. Form 01-156 is only for individuals or entities without a permit.
How Do I Find the Correct Tax Rate?
Use the Texas Comptroller’s Sales Tax Rate Locator. The correct rate depends on where the item is used or stored, not where it was purchased.
Can I Claim Credit for Taxes Paid to Another State?
Yes. You can subtract taxes paid to another state from your Texas use tax liability. However, the credit cannot exceed the amount owed to Texas, and documentation is required.
What Happens If I Miss the Deadline?
You will face penalties starting at 5% and increasing to 20%, plus interest after 60 days. Continued failure to file may result in liens, asset seizures, or legal action.
Do Foreign Purchases Count for Use Tax?
Yes. Items purchased abroad and brought into Texas are subject to use tax. This includes goods from Mexico, Canada, and other countries, unless they qualify for exemption.
