What the Form Is For
Texas Form 01-156, the Texas Use Tax Return, is a specialized form for individuals and businesses that need to report and pay use tax directly to the Texas Comptroller's office. Use tax is complementary to sales tax and applies when you purchase taxable goods or services for storage, use, or consumption in Texas but the seller did not collect Texas sales tax at the time of purchase.
This form is specifically designed for purchasers who do not hold a Texas sales and use tax permit. If you already have a Texas sales and use tax permit, you cannot use Form 01-156; instead, you must report any use tax obligations on your regular sales and use tax return under ""taxable purchases.""
The most common situations requiring Form 01-156 include:
- Purchasing items online from out-of-state retailers who don't charge Texas tax
- Buying goods while traveling in another state and bringing them back to Texas
- Purchasing items from international sellers (including Mexico)
- Acquiring taxable goods from sellers who failed to collect the required tax
Texas use tax ensures fairness between in-state retailers who must collect sales tax and out-of-state sellers who might not.
When You’d Use This Form
Filing Threshold Rules
The filing deadline for Form 01-156 depends on how much use tax you owe during a calendar year.
- If you owe less than $1,000, file by January 20 of the following year
- If you reach $1,000 or more, file by the 20th of the following month
Example Scenario
If you purchased:
- March: $250 use tax
- July: $800 use tax (total = $1,050)
You must file and pay by August 20.
Late Filing Penalties
- $50 penalty for late filing (even if no tax is owed)
- 5% penalty if paid 1–30 days late
- 10% penalty if paid after 30 days
- Interest starts on the 61st day
Amended Returns
Form 01-156 does not include an amended return checkbox.
What to Do Instead
- Contact the Comptroller
- Provide documentation explaining corrections
Key Rules or Details for 2024
Tax Rate Structure
- State rate: 6.25%
- Local tax: up to 2%
- Maximum combined rate: 8.25%
Credit for Taxes Paid to Other States
You can claim a credit for taxes paid elsewhere.
Example
- Paid 5% in another state
- Texas rate: 8.25%
- You owe: 3.25% difference
What Is Taxable
Use tax applies to:
- Total purchase price
- Shipping and handling charges
Interstate Agreements
Texas recognizes taxes paid to:
- Other states
- U.S. territories (including Puerto Rico)
- U.S. possessions
Keep receipts to document credits.
Step-by-Step (High Level)
Step 1: Gather Documentation
Collect:
- Receipts
- Invoices
- Online confirmations
- Proof of tax paid elsewhere
Step 2: Determine Filing Period
- Full year if under $1,000
- Partial year if threshold exceeded
Step 3: Calculate Taxable Amount
Include:
- Item price
- Shipping and handling
Step 4: Identify Correct Tax Rate
Use the location where the item was:
- First received
- Stored
- Used
Step 5: Apply Credits
Subtract taxes paid to other states.
Step 6: Complete the Form
Include:
- Personal information
- Purchase totals
- Tax calculations
- Credits
Step 7: File and Pay
Options:
- Online (recommended)
- Mail (check or money order)
Common Mistakes and How to Avoid Them
Using the Wrong Form
If you have a sales tax permit:
- Do NOT use Form 01-156
- Report on your regular sales tax return
Excluding Shipping Costs
Always include shipping in taxable amount.
Example
- Item: $500
- Shipping: $50
- Taxable amount: $550
Missing the Filing Deadline
Track cumulative tax to avoid crossing the threshold unnoticed.
Not Claiming Credits
Keep receipts for out-of-state taxes.
Using Incorrect Tax Rates
Always verify local rates.
What Happens After You File
Processing Timeline
- Online: Immediate confirmation
- Paper: Several weeks
Recordkeeping
Keep documents for at least 4 years.
If You Underpay
You may receive:
- Billing notice
- Penalties and interest
If You Don’t File
The Comptroller may issue:
- Estimated billings
- Higher-than-actual assessments
Why Compliance Matters
Use tax supports:
- Education
- Infrastructure
- Public safety
FAQs
If I buy something online from a major retailer like Amazon, do I still need to file Form 01-156?
Generally no, because most major online retailers with marketplace platforms now collect and remit Texas use tax directly. When you check out, if you see ""Texas Tax"" collected, the seller has handled the tax obligation and you don't need to report that purchase. However, if you buy from a seller—even through a major platform—that doesn't collect Texas tax, and the item ships to or is used in Texas, you owe use tax on that purchase. Check your receipts; if no Texas tax appears, the transaction likely requires reporting on Form 01-156.
Can I claim a credit if I paid sales tax to another state on something I later brought to Texas?
Yes, Texas law specifically allows this credit to prevent double taxation. When completing Form 01-156, you can subtract the amount of legally imposed sales or use tax you paid to another state, Puerto Rico, or any U.S. possession from your Texas use tax liability. However, if the other state's tax rate was lower than Texas's combined state and local rate, you'll still owe the difference. Always keep receipts showing the tax you paid elsewhere as documentation for this credit.
What exactly counts as a taxable purchase subject to use tax?
Use tax applies to tangible personal property and taxable services purchased for storage, use, or consumption in Texas when the seller didn't collect Texas sales tax. Common examples include furniture bought from an out-of-state furniture store and delivered to your Texas home, electronic equipment purchased online from retailers without a Texas presence, clothing bought while traveling in another state and brought back to Texas, vehicles purchased from out-of-state dealers, and even items purchased internationally and imported for use in Texas. Essentially, if it would have been taxable had you bought it from a Texas retailer, it's subject to use tax when purchased elsewhere untaxed.
Do I need Form 01-156 if I have a Texas sales tax permit for my business?
No, you cannot use Form 01-156 if you hold a Texas sales and use tax permit. The form explicitly states this restriction. Instead, report your taxable purchases on your regular sales and use tax return, specifically on Line 3 labeled ""Taxable Purchases."" This includes any business items you bought without paying Texas tax, whether from out-of-state suppliers or through exempt purchase certificates later used for taxable purposes. Mixing Form 01-156 with permitted business reporting creates compliance problems and potential penalties.
What if I don't file or pay my use tax—will anyone really know?
The Comptroller's office has multiple methods for identifying unreported use tax liabilities, including data sharing with other states, information from marketplace providers, transaction records from payment processors, and audits of business records. Failing to file and pay use tax when required can result in the original tax owed plus a $50 late filing penalty, percentage-based penalties up to 20 percent, interest charges, potential liens against your property, and even criminal charges in cases of intentional tax evasion. The risk and consequences far outweigh any temporary savings from not reporting.
I discovered purchases from several months ago that I forgot to report. What should I do?
Contact the Comptroller's office promptly to file a return covering those purchases. While you'll likely face late filing penalties and possibly interest charges depending on timing, voluntary disclosure before the state discovers the omission generally results in better outcomes than waiting for an audit or billing notice. Gather your documentation, calculate the tax owed including any applicable credits, and file Form 01-156 with a letter explaining the situation. You may also wish to request a penalty waiver if you have reasonable cause for the late filing, though such waivers are granted on a case-by-case basis.
How do I determine the correct local tax rate for my use tax calculation?
Use the Texas Comptroller's Sales Tax Rate Locator tool available on their website. Enter the specific Texas address where you first received, stored, or used the purchased item. The tool returns the exact combined state and local tax rate applicable to that location. This is important because local rates vary significantly across Texas—some areas have only the 6.25 percent state rate, while others reach the maximum 8.25 percent with local additions. Using the wrong rate leads to either underpayment (triggering penalties) or overpayment (losing money unnecessarily).
