What Form 01-156 Is For
Form 01-156, the Texas Use Tax Return, is specifically designed for purchasers who don't hold a Texas Sales and Use Tax Permit but owe tax on items they've bought. Use tax is the complementary partner to sales tax—it ensures that Texas collects revenue on taxable goods and services consumed in the state, even when the seller isn't required to collect it.
Think of use tax as the flip side of sales tax. When you buy a laptop from a local Texas retailer, they collect sales tax from you. But if you order that same laptop from an online seller in California who doesn't collect Texas tax, you owe use tax directly to the Texas Comptroller. Form 01-156 is how you report and pay that obligation.
The form covers taxable items brought into Texas from outside the state, whether you purchased them online, through mail-order catalogs, from out-of-country vendors, or during out-of-state trips. This includes tangible personal property like furniture, electronics, clothing, equipment, and vehicles, as well as taxable services. Even shipping and handling charges are considered part of the purchase price subject to tax.
Importantly, this form is only for individuals and businesses that don't have a Texas sales tax permit. If you already have a permit, you report your use tax liability on your regular sales tax return under "taxable purchases" (Item 3)—not on Form 01-156.
When You’d Use Form 01-156
Regular Filing Timeline
If you owe less than $1,000 in 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 online purchases throughout 2026 totaling $800 in tax owed, you can file anytime through January 20, 2027.
However, once you reach $1,000 or more in use tax owed during a single calendar year, the rules change. You must file and pay by the 20th of the month following the month when you crossed that threshold.
Example Threshold Scenario
You buy an untaxed item in March 2026 and owe $250 in Texas use tax. In June, you purchase another untaxed item and owe an additional $750. Since your combined tax liability now exceeds $1,000, you must file Form 01-156 and pay the full $1,000 by July 20, 2026.
Late Returns
If you miss your filing deadline, you'll face penalties:
- $50 late filing penalty (even if no tax is owed)
- 5% penalty if paid 1–30 days late
- 10% penalty if over 30 days late
- Interest begins on the 61st day after the due date
Amended Returns
If you discover an error on a previously filed Form 01-156:
- Submit an amended return via Webfile or paper form
- Write “Amended Return” clearly at the top
- Include additional tax, penalties, and interest if underpaid
- Request a refund if overpaid (documentation may be required)
Key Rules or Details for 2017
Tax Rates
- State rate: 6.25%
- Local rate: up to 2%
- Maximum combined rate: 8.25%
The applicable rate depends on where the item is used—not where it was purchased.
Credit for Tax Paid to Other States
You can claim a credit for sales or use tax paid to another state to avoid double taxation. If the other state's rate is lower, you pay the difference.
Remote Sellers and Single Local Use Tax Rate
Some sellers collect a flat 1.75% local use tax:
- If over-collected → you may request a refund
- If under-collected → you do NOT owe additional tax
What’s Taxable
- Tangible personal property
- Taxable services
- Shipping and handling
Includes items purchased online, out-of-state, or internationally.
Exemptions and Credits
Common exemptions include:
- Items for resale
- Manufacturing equipment
- Agricultural items
If an exempt item is later used for a taxable purpose, use tax applies.
Step-by-Step (High Level)
Step 1: Gather Your Records
Collect:
- Receipts
- Invoices
- Shipping confirmations
- Bills of lading
Include purchase price, date, and usage location.
Step 2: Determine Your Tax Rate
Use the Texas Comptroller’s Sales Tax Rate Locator to find the correct rate.
Step 3: Calculate Tax Owed
- Multiply purchase total (including shipping) by tax rate
- Subtract credits for taxes paid to other states
Step 4: Complete the Form
Provide:
- Name and address
- SSN or EIN
- Total taxable purchases
- Tax due (state and local)
Step 5: Submit Payment
Options:
- File online via Webfile
- Mail paper form with check
Keep copies for your records.
Step 6: Track Your Filing
- Online filing = instant confirmation
- Paper filing = longer processing
- Receipt issued if required
Common Mistakes and How to Avoid Them
Mistake #1: Forgetting Use Tax
Solution: Track untaxed purchases year-round.
Mistake #2: Missing the $1,000 Threshold
Solution: Maintain a running total and file early if needed.
Mistake #3: Incorrect Tax Base
Solution: Include shipping and handling in calculations.
Mistake #4: Not Claiming Credits
Solution: Check receipts for out-of-state tax paid.
Mistake #5: Using the Wrong Form
Solution: Only use Form 01-156 if you do NOT have a sales tax permit.
Mistake #6: Incomplete Forms
Solution: Double-check all entries before submitting.
Mistake #7: Ignoring Local Tax
Solution: Always calculate the full combined rate.
What Happens After You File
Processing Timeline
- Online: Immediate
- Paper: Several weeks
Payment Application
Your payment is applied to the reported period. Full payment = obligation satisfied.
Receipt of Payment
- Confirmation acts as receipt
- Formal receipt issued for specific cases (e.g., vehicle registration)
If You Underpaid
- Receive billing notice
- Includes penalties and interest
- Options: pay, dispute, or request payment plan
If You Overpaid
- File refund claim (Form 00-957 or amended return)
- May require supporting documents
Audit Possibility
Keep records for at least 4 years. Missing documentation may result in additional tax assessments.
Compliance and Future Filings
You may need to file again if you continue making untaxed purchases.
FAQs
If I buy something on Amazon and don’t pay Texas tax, do I need to file Form 01-156?
Yes, if no tax was collected. However, most major platforms now collect Texas tax. Always check your receipt.
What if I purchase items both in Texas and out-of-state?
Only report purchases where Texas tax was NOT collected.
Can I file Form 01-156 online?
Yes. Webfile allows fast filing and payment with immediate confirmation.
I bought a car out-of-state. Does Form 01-156 apply?
No. Motor vehicles are handled separately through your local tax office.
What if I forgot to file?
File immediately. You may face penalties, but delaying increases costs.
Do I need to keep records?
Yes. Keep all documentation for at least four years.
How does the credit for tax paid to other states work?
Subtract the tax paid to another state from your Texas obligation. Pay only the difference if Texas tax is higher.
