What the Form Is For
Texas Form 01-156 is designed for individuals and businesses who need to report and pay use tax directly to the Texas Comptroller of Public Accounts when they purchase taxable items without paying Texas sales tax. Use tax is complementary to sales tax and applies when you buy goods or services for storage, use, or consumption in Texas from sellers who don't collect Texas tax.
This form specifically serves nonpermitted purchasers—those who don't hold a Texas Sales and Use Tax Permit. Common scenarios include buying items through online retailers, mail-order companies, or out-of-state sellers who don't charge Texas tax; purchasing taxable goods during international travel (such as items bought in Mexico) that you bring into Texas; or acquiring taxable property from another state that you'll use in Texas, including vehicles, equipment, boats, or aircraft.
The Texas state use tax rate is 6.25 percent, with local jurisdictions potentially adding up to 2 percent more, depending on where you store or use the item, for a maximum combined rate of 8.25 percent. The form cannot be used by businesses or individuals with a Texas sales tax permit—they must report use tax on their regular sales tax returns under "Taxable Purchases."
When You'd Use It
You'll file Form 01-156 when you owe use tax on purchases where the seller didn't collect Texas sales or use tax. The filing deadline depends on how much use tax you owe during a calendar year. If you owe less than $1,000 in total use tax for the year, you must file and pay no later than January 20 of the following year. However, if you reach or exceed $1,000 in use tax owed during any calendar year, you must file and pay by the 20th of the month following the month when you crossed that threshold.
For example, if you purchase an untaxed item in March and owe $250 in use tax, you can wait until January 20 of the next year to file. But if you make another untaxed purchase in September that adds $800 in use tax, bringing your annual total to $1,050, you must file and pay by October 20—the 20th of the month after reaching the $1,000 threshold.
While Texas doesn't have a specific "amended" version of Form 01-156, you should file an additional return if you discover you underreported use tax. Late filings trigger penalties: a 5 percent penalty if you pay 1-30 days late, and 10 percent if you pay more than 30 days late. Interest also accrues on unpaid taxes beginning 61 days after the due date, calculated at a variable rate set annually (currently the prime rate plus 1 percent).
Key Rules
Several important rules govern Form 01-156 filing. First, you cannot use this form if you hold a Texas sales and use tax permit—permit holders must report all use tax on their regular sales and use tax returns in the "Taxable Purchases" section (Item 3).
You're responsible for calculating and paying the appropriate tax rate based on where you'll use, store, or consume the item. The statewide rate is always 6.25 percent, but you must also add any applicable local taxes. Use the Texas Comptroller's Sales Tax Rate Locator tool to determine your complete tax rate by entering your address.
Texas allows a credit for sales or use tax you've already paid to another state on the same purchase. This prevents double taxation. For instance, if you paid 4 percent sales tax to Louisiana on a purchase, you would only owe Texas the difference between Texas's rate and what you already paid. This credit is outlined in Texas Administrative Code Rule 3.346.
Payment methods include electronic filing through Webfile, Electronic Data Interchange (EDI), or paper forms submitted by mail with check payment. The Comptroller's office encourages electronic filing for faster processing. Keep thorough documentation of all purchases, including receipts showing purchase price, any taxes paid to other states, and where you'll use the items.
Step-by-Step (High Level)
Filing Form 01-156 follows a straightforward process. Begin by gathering all necessary purchase documentation, including invoices, receipts, and proof of any sales or use tax paid to other jurisdictions. You'll need the seller's name and address, detailed descriptions of items purchased, purchase dates, purchase prices, and the delivery or use location in Texas.
Next, calculate your use tax liability. Determine the total purchase price for each taxable item, identify the appropriate Texas tax rate for where you'll use the item (state plus local), subtract any credit for taxes paid to other states, and multiply the remaining taxable amount by the combined Texas rate.
Complete Form 01-156 by entering your personal or business information, listing all taxable purchases during the reporting period, calculating the total use tax due, and showing any credits for taxes paid elsewhere. Double-check all calculations and ensure you've included all required information.
Submit the form and payment by your applicable deadline—either January 20 of the following year if you owe less than $1,000 annually, or by the 20th of the month following when you reach the $1,000 threshold. You can file electronically through the Texas Comptroller's Webfile system or mail a paper form with your check payable to the Texas Comptroller of Public Accounts. Keep copies of everything you submit along with supporting documentation for at least four years.
Common Mistakes and How to Avoid Them
Several recurring errors can complicate your Form 01-156 filing. The most frequent mistake is permit holders using this form when they should report use tax on their regular sales and use tax returns. If you have a Texas sales tax permit, always report use tax under Item 3 (Taxable Purchases) on your standard return, never on Form 01-156.
Many filers forget to claim credits for taxes paid to other states, resulting in overpayment. Always document any sales or use tax paid to other jurisdictions and claim the allowable credit to avoid paying twice on the same purchase. Keep receipts showing what you paid elsewhere.
Calculating the wrong tax rate is another common pitfall. Using only the 6.25 percent state rate without adding applicable local taxes leads to underpayment. Always use the Sales Tax Rate Locator on the Comptroller's website to determine your complete rate, which varies by location and can reach up to 8.25 percent.
Missing filing deadlines causes unnecessary penalties and interest. Track your cumulative use tax liability throughout the year and set reminders for the appropriate deadline. If you're approaching the $1,000 threshold, be prepared to file quickly once you cross it. Finally, inadequate recordkeeping creates problems if the Comptroller has questions about your return. Maintain detailed purchase records, including seller information, purchase prices, tax calculations, and any exemption claims, for at least four years.
What Happens After You File
Once you submit Form 01-156 with payment, the Texas Comptroller's office processes your return and applies the payment to your account. Processing times vary depending on whether you filed electronically or by mail—electronic submissions typically process faster. You should receive confirmation of receipt, though processing doesn't necessarily mean acceptance of all reported amounts.
The Comptroller's office may review your return and contact you if additional information is needed or if they identify discrepancies. Respond promptly to any correspondence to avoid complications. If you've overpaid, you can request a refund by filing directly with the Comptroller using the procedures outlined on their website under sales tax refunds.
If you underpaid or failed to pay, expect a billing notice detailing the remaining balance due, additional penalties and interest, and instructions for payment or disputing the assessment. Failing to pay use tax can result in serious consequences, including a $50 late filing penalty, 5-10 percent late payment penalties, interest accruing after 60 days, potential tax liens filed against your property, and possible collection actions.
The Comptroller has four years from the filing date to audit your return, so maintain all documentation during this period. If you discover errors after filing, submit an additional Form 01-156 to report any underreported tax, or contact the Comptroller's office for guidance on correcting overpayments. For payment plans on past-due liabilities, contact your local Comptroller field office or call the main helpline at 800-252-8880.
FAQs
If I already have a Texas sales tax permit, can I use Form 01-156?
No. Businesses and individuals with Texas sales and use tax permits cannot use Form 01-156. You must report all use tax on your regular Texas Sales and Use Tax Return under Item 3, "Taxable Purchases," on your next scheduled filing date. Form 01-156 is exclusively for nonpermitted purchasers.
Do I owe Texas use tax on items I bought online from retailers like Amazon?
It depends on whether the seller collected Texas tax. Many major online retailers now collect and remit Texas sales tax directly, which you'll see on your receipt. If Texas tax wasn't collected and you're using the item in Texas, you owe use tax and must report it. Check your receipts carefully—if Texas tax was already collected, you don't need to report it again.
I paid sales tax to another state on an item I'm now using in Texas. Do I still owe use tax?
You may owe the difference. Texas provides a credit for sales or use tax legally paid to other states. If you paid 4 percent to another state but your Texas rate is 8.25 percent, you owe Texas 4.25 percent. If you paid the same or more than the Texas rate, you owe nothing additional. Always document the tax you paid elsewhere and claim this credit on Form 01-156.
What items are typically subject to use tax?
Most tangible personal property and taxable services used in Texas are subject to use tax if Texas sales tax wasn't collected. Common examples include furniture, electronics, clothing, jewelry, equipment, vehicles, boats, aircraft, and taxable services purchased from out-of-state or international sellers. Some items qualify for exemptions, such as certain agricultural equipment or items purchased for resale.
How do I know what tax rate to use when calculating my use tax?
Use the combined state and local rate for the location where you'll store, use, or consume the item. The state rate is always 6.25 percent, but local jurisdictions (cities, counties, transit authorities, and special purpose districts) can add up to 2 percent more. Use the Sales Tax Rate Locator tool on the Texas Comptroller's website by entering your address to find your exact combined rate.
Can I file and pay Form 01-156 electronically?
Yes. The Texas Comptroller encourages electronic filing through their Webfile system at the Comptroller's secure online portal. You can file the return and pay via electronic funds transfer or credit card (American Express, Discover, Mastercard, or Visa). Electronic filing is faster and provides immediate confirmation. You can also file paper forms by mail with check payment.
What should I do if I can't pay the full amount of use tax I owe?
Contact the Texas Comptroller's Enforcement Division immediately at 800-252-8880 or visit your local field office. While taxes are always due on the due date, the Comptroller considers payment plans on a case-by-case basis to avoid undue hardship. Be aware that even with a payment plan, your account remains delinquent, and some collection actions may continue, including billing notices and potential liens.
Sources: All information derived from official Texas Comptroller of Public Accounts publications and web pages, including the Use Tax page, Sales and Use Tax information, Filing Requirements, Penalties page, and related frequently asked questions sections.
