What Texas Form 01-156 Is For
Texas Form 01-156 is the state's Use Tax Return designed for individuals and businesses who don't hold a Texas sales and use tax permit but need to pay tax on items they purchased without paying Texas sales tax. Use tax is the companion to sales tax—it ensures that Texas receives its tax revenue even when you buy something from an out-of-state seller who didn't collect the tax at the point of sale.
Think of use tax as the mirror image of sales tax. When you buy a laptop from a California online retailer who doesn't charge you Texas tax, or when you purchase furniture from a store in another state and bring it home to Texas, you're responsible for paying use tax directly to the Texas Comptroller of Public Accounts. The tax applies to tangible personal property and taxable services that you'll store, use, or consume within Texas borders. This includes purchases from other countries too—if you buy items in Mexico and bring them back to Texas for personal use, use tax applies to those purchases.
Form 01-156 is specifically for purchasers without a Texas sales and use tax permit. If you're a business that already holds a permit, you cannot use this form; instead, you must report use tax on your regular sales and use tax return using Item 3 (Taxable Purchases). The form helps Texas maintain tax fairness by ensuring that in-state and out-of-state purchases receive equal tax treatment.
When You’d Use Texas Form 01-156
Late and Amended Filings
Understanding when to file Form 01-156 depends on how much use tax you owe and when you reached certain thresholds during the calendar year. The Texas Comptroller sets clear deadlines based on annual accumulation rather than individual purchase dates.
If you owe less than $1,000 in total use tax for the entire calendar year, you have until January 20 of the following year to file and pay. For example, if you made several untaxed purchases throughout 2024 totaling $800 in use tax liability, you can file Form 01-156 any time through January 20, 2025. This annual reporting option provides flexibility for occasional purchasers who make infrequent out-of-state purchases.
However, once your cumulative use tax liability reaches or exceeds $1,000 during any calendar year, the rules change immediately. You must file and pay by the 20th of the month following the month when you crossed that threshold. If you owed $250 in February, another $300 in May, and then $500 in August (reaching $1,050 total), you would need to file and remit payment by September 20—the month after you hit the $1,000 mark.
For late filings, Texas imposes structured penalties. A $50 late filing penalty applies to any return filed after the due date, regardless of whether you owe tax. If you're paying tax 1-30 days late, add a 5 percent penalty on the tax amount. Beyond 30 days late, the penalty increases to 10 percent. If you still haven't paid after receiving a Notice of Tax Due, an additional 10 percent penalty applies, bringing total penalties to 20 percent of the tax owed. Interest begins accruing on the 61st day after the due date at a variable rate determined annually by the Comptroller.
Texas doesn't have a separate "amended" version of Form 01-156. If you discover errors on a previously filed return—whether you underpaid, overpaid, miscalculated local taxes, or forgot to claim credit for taxes paid to another state—you file a new Form 01-156 marked to indicate it's correcting a prior submission. Include an explanation of what you're correcting and any documentation supporting the change. If the correction shows you underpaid, include the additional tax plus applicable penalties and interest.
Key Rules or Details for 2019
Tax Rates Mirror Sales Tax Rates
The state use tax rate is 6.25 percent, but you may owe additional local use tax up to 2 percent depending on where you store, use, or consume the item in Texas. Total use tax can reach 8.25 percent when combining state and local rates. You can determine your local rate using the Texas Comptroller's Sales Tax Rate Locator on their website. If you buy an item from an out-of-state seller who only charged you the 6.25 percent state rate, you still owe the additional local use tax to match your city or county's rate.
Credit for Taxes Paid to Other States
Texas recognizes that requiring double taxation would be unfair. If you paid sales or use tax to another state, Puerto Rico, or a U.S. possession on the same purchase, you can credit that amount against your Texas use tax liability. However, the credit only covers the amount of tax actually paid elsewhere—if another state's rate was lower than Texas's combined rate, you still owe the difference. You must maintain documentation proving you paid tax to the other jurisdiction, such as receipts showing the tax collected.
Tax Base Rules
The tax base is the purchase price you actually paid. Calculate use tax on the original sales price of the item, which includes any delivery or shipping charges if they're part of the taxable transaction. Don't inflate or deflate this amount. If you bought a $1,500 desk from an Oregon retailer with $100 shipping, your tax base would typically be $1,600 (depending on how the shipping was billed), and you'd apply your applicable Texas use tax rate to that amount.
Exemptions
Exemptions that apply to sales tax also apply to use tax. If you purchased items that would be exempt from Texas sales tax—such as prescription medications, certain agricultural equipment, or items bought for resale—those same exemptions protect you from use tax liability.
Recordkeeping Requirements
You must keep detailed records. Maintain purchase receipts, invoices, shipping documents, and any records showing taxes paid to other states. The Comptroller may audit your use tax compliance, and having organized documentation makes the process smoother and protects you from penalties for underreporting.
Step-by-Step (High Level)
Gather Your Documentation
Before you start filling out the form, collect all receipts and invoices for purchases where no Texas sales tax was collected. Organize them by date and identify which items are subject to use tax. Calculate the local use tax rate for your specific Texas address using the Comptroller's online locator tool.
Complete the Identification Section
Enter your name or business name exactly as it should appear in state records. Individuals provide their Social Security number; businesses provide their Employer Identification Number (EIN) or other applicable tax identification number.
Specify the Reporting Period
Indicate the calendar year and specific time period covered by this return.
Calculate the State Use Tax
List your taxable purchases and their total cost. Multiply this amount by 6.25 percent (0.0625).
Calculate Local Use Tax
Determine the local use tax rate for your area and apply it to the same purchase price base.
Report Credits and Calculate Total Due
Subtract allowable credits from your gross tax liability.
Sign, Date, and Submit
Include payment and submit the form either online or by mail.
Common Mistakes and How to Avoid Them
Thinking Use Tax Doesn’t Apply
Many taxpayers assume that if an out-of-state seller didn't collect Texas tax, they don't owe anything. This is incorrect.
Using the Wrong Form
Permitted businesses must not use Form 01-156.
Forgetting Local Use Tax
Always include both state and local rates.
Not Claiming Credits
Failing to claim credits means overpaying.
Using Incorrect Tax Base
Use the actual purchase price, including applicable shipping.
Missing Filing Deadlines
Track your cumulative use tax liability throughout the year.
Poor Recordkeeping
Maintain records for at least four years.
What Happens After You File
Processing and Confirmation
The Comptroller processes your return and issues confirmation.
Account Reconciliation
Your return is reviewed against existing records.
Potential Correspondence
You may receive notices for clarification.
Use in Registration
Proof of payment may be required for vehicles or boats.
Audit Considerations
You may be selected for audit.
Compliance History
Your filing history affects your compliance profile.
Collection Actions
Failure to pay may result in liens, asset seizure, or penalties.
FAQs
Can I use Form 01-156 if I have a Texas sales tax permit?
No. If you hold a valid Texas sales and use tax permit, you cannot use Form 01-156. Instead, you must report any use tax liability on your regular Texas Sales and Use Tax Return.
What if I already paid Texas sales tax?
If the seller collected full tax, you don’t need to report that purchase. If only partial tax was collected, you owe the difference.
How do I determine local tax rates?
Use the Texas Comptroller’s Sales Tax Rate Locator based on where the item is used or stored.
What if I forgot to report purchases?
File a new Form 01-156 with corrections and include payment for any additional tax owed.
How does credit for other states work?
You subtract tax paid to another state from your Texas liability, but you still owe any difference.
Can I file electronically?
Yes. You can use the Comptroller’s Webfile system for faster processing.
Are there purchases that don’t require use tax?
Yes. Exempt items, resale purchases, and items used outside Texas generally don’t require use tax.
