What the Form Is For
Texas Form 01-156, officially titled "Texas Use Tax Return," is designed for individuals and businesses who purchase taxable items or services without paying Texas sales tax but then store, use, or consume those items in Texas. This form serves as the reporting mechanism for use tax, which is complementary to sales tax and ensures that Texas receives tax revenue on goods and services used within the state, regardless of where they were purchased.
Use tax applies in several common scenarios. If you buy something from an out-of-state retailer—whether through online shopping, mail-order catalogs, or while traveling—and the seller doesn't collect Texas sales tax, you owe use tax when you bring that item back to Texas or have it delivered here. This includes items purchased from another country and brought into Texas. The form also applies when you purchase goods using a resale or exemption certificate but then use those items for purposes that don't qualify for the exemption.
Form 01-156 is specifically for purchasers who do not hold a Texas Sales and Use Tax Permit. If you already have a sales tax permit, you would instead report use tax on your regular sales tax return using line 3, "Taxable Purchases." The use tax rate mirrors the sales tax rate: 6.25 percent for state tax, plus up to 2 percent in local taxes depending on where you use, store, or consume the item, for a maximum combined rate of 8.25 percent.
When You’d Use It (Late/Amended)
Texas requires timely filing of Form 01-156 based on how much use tax you owe during a calendar year.
Filing Threshold Rules
If you owe less than $1,000 in use tax for the entire year, you must file and pay by January 20 of the following year.
If your use tax liability reaches $1,000 or more at any point during the calendar year, you must file and pay by the 20th day of the month following the month when you crossed that threshold.
Example Scenario
For example, imagine you purchased an untaxed item in March owing $250 in use tax. You can wait until January 20 of the next year to file. But if you buy another untaxed item in September owing an additional $800, you’ve now reached $1,050. This triggers the requirement to file and pay by October 20.
Late Filing Penalties
Late filings face significant penalties:
- $50 late filing penalty applies even if no tax is due
- 5 percent penalty if payment is 1–30 days late
- 10 percent penalty if more than 30 days late
- Interest begins accruing after 61 days
Amended Returns
If you discover an error on a previously filed Form 01-156:
- Complete a corrected version of the form
- Write "Amended Return" clearly at the top
- Sign and date the form
- Mail to:
Comptroller's Office
111 E. 17th Street
Austin, Texas 78774-0100
Include additional tax, penalties, and interest if applicable. Overpayments follow the refund claim process.
Key Rules
Out-of-State Purchases
The most common situation involves out-of-state purchases. If a seller doesn’t collect Texas sales tax, you owe use tax when bringing the item into Texas.
Credit for Taxes Paid to Other States
Texas allows a credit for tax paid to another state. You only pay the difference if Texas rates are higher.
Local Use Tax
Local use tax depends on where the item is used, not where it was purchased. The combined rate can reach 8.25 percent.
Exemptions
Some items are exempt:
- Manufacturing equipment
- Agricultural items
- Other legally exempt goods
Form Limitations
- Not for permit holders (they use regular sales tax return)
- Not for off-highway vehicles (use Form 01-163 instead)
Step-by-Step (High Level)
Gather Documentation
Collect:
- Receipts
- Invoices
- Purchase records
Track purchase price, location, and usage.
Calculate Tax
- Apply 6.25 percent state tax
- Add local tax (up to 2 percent)
- Subtract credits from other states
Complete the Form
Include:
- Personal details
- Purchase descriptions
- Tax calculations
- Credits
Choose Filing Method
- Mail paper form
- File online via Webfile
Submit Payment
Mail to:
Comptroller of Public Accounts
111 E. 17th Street
Austin, Texas 78774-0100
Online options include EFT or credit card.
Common Mistakes and How to Avoid Them
Not Recognizing Use Tax Applies
Many overlook online purchases where tax wasn’t collected.
Miscalculating Local Tax
Always verify the correct local rate using the Comptroller’s tool.
Missing the $1,000 Threshold
Track your yearly use tax total to avoid missing early deadlines.
Ignoring Credits
Claim credits for taxes paid to other states to avoid overpaying.
Using the Wrong Form
- Permit holders should not use Form 01-156
- Use Form 01-163 for specific vehicle purchases
What Happens After You File
Processing Your Return
- Paper filings take several weeks
- Online filings are faster
- Keep records for at least four years
Audit Risk
Returns may be audited. Keep:
- Receipts
- Invoices
- Tax payment proof
Underpayment Consequences
You may receive a billing notice including:
- Additional tax
- Penalties
- Interest
Enforcement Actions
Non-compliance may lead to:
- Tax liens
- Asset seizure
- Legal action
Support and Contact
- Phone: 800-442-3453
- Website: comptroller.texas.gov
- Local field offices available
FAQs
Do I really owe use tax on items I buy online from major retailers?
Yes, if the retailer doesn't collect Texas sales tax, you owe use tax. While many large retailers now collect it, some smaller sellers still don’t. Always check receipts and track untaxed purchases.
What if I paid sales tax to another state on items I brought to Texas?
Texas allows a credit for tax paid elsewhere. You only owe the difference if Texas tax is higher.
Can I file Form 01-156 electronically instead of mailing a paper form?
Yes, through the Comptroller’s Webfile system. It offers faster processing and digital confirmation.
What happens if I forget to file until after January 20 and I owed less than $1,000?
You’ll face a $50 penalty plus additional late payment penalties and interest. File as soon as possible.
If I have a Texas Sales and Use Tax Permit, can I use Form 01-156 for business purchases?
No. Use your regular sales tax return instead.
Are any purchases exempt from use tax?
Yes. Exemptions include resale items, manufacturing equipment, and certain agricultural goods.
How long should I keep records after filing Form 01-156?
Keep records for at least four years, including receipts, filed returns, and payment confirmations.
