What Form 01-156 Is For
Form 01-156, the Texas Use Tax Return, is a specialized tax form designed for individual purchasers and businesses without a Texas sales and use tax permit who need to report and pay use tax directly to the Texas Comptroller of Public Accounts. Use tax is a nonrecurring tax complementary to sales tax that applies when you buy taxable items from sellers who don't collect Texas sales tax, but you store, use, or consume those items in Texas.
Think of use tax as the companion to sales tax—it ensures that Texas receives its tax revenue even when purchases are made from out-of-state retailers, online vendors, or other situations where Texas sales tax wasn't collected at the point of sale. The most common scenario involves buying something online or from an out-of-state seller who doesn't charge Texas tax, then bringing that item into Texas for use.
The form applies to a wide range of purchases, from everyday items bought through online auctions and internet retailers to more substantial purchases like boats, aircraft, or off-highway vehicles purchased from out-of-state sellers. If you're a Texas resident who purchased a taxable item without paying Texas sales tax, and you use that item in Texas, Form 01-156 is how you fulfill your tax obligation to the state.
When You’d Use Form 01-156
Including Late and Amended Returns
You'll use Form 01-156 whenever you owe use tax but don't have a Texas sales and use tax permit. The filing deadline depends on how much use tax you owe during the calendar year.
- If you owe less than one thousand dollars in use tax for the year, you must file and pay no later than January 20 of the following year.
- If your cumulative use tax liability reaches or exceeds one thousand dollars at any point during the calendar year, you must file and pay by the 20th of the month following the month when you crossed that threshold.
For example, imagine you bought an untaxed camera online in March for which you owe two hundred fifty dollars in Texas use tax. You can wait and file by January 20 of the next year. But if you purchase another untaxed item in September that adds seven hundred fifty dollars more in use tax liability, you've now reached the one thousand dollar threshold. At that point, you must file Form 01-156 and pay the full amount due by October 20th.
Late Returns
If you need to file a late return because you missed the deadline, you should file as soon as possible and include applicable penalties and interest.
- 5 percent penalty: 1–30 days late
- 10 percent penalty: more than 30 days late
- Additional 10 percent penalty possible after notice (up to 20 percent total)
Interest begins accruing on the 61st day after the due date.
Amended Returns
If you discover an error on a previously filed Form 01-156:
- Write “AMENDED RETURN” at the top
- Complete the corrected form
- Submit it with any additional payment or explanation for refund
Key Rules or Details for This Tax Year
Who Should Use This Form
Form 01-156 is exclusively for nonpermitted purchasers. If you have a Texas sales and use tax permit, report use tax on your regular return instead.
Tax Rates
- State rate: 6.25 percent
- Local tax: up to 2 percent
- Maximum combined rate: 8.25 percent
Use the Texas Comptroller’s rate locator to determine your exact rate.
Credit for Taxes Paid to Other States
If you paid tax to another state:
- You can claim a credit
- You only owe the difference if Texas tax is higher
Common Taxable Situations
- Purchases from out-of-state or foreign sellers
- Items bought with resale certificates but used personally
- Items bought tax-exempt but used for taxable purposes
- Goods brought into Texas from other locations
Special Filing Situations
- Off-highway vehicles may use Form 01-163 or Webfile
- Online filing may be required for certain purchases
Step-by-Step (High Level)
Step 1: Gather Documentation
Collect:
- Receipts
- Invoices
- Proof of payment
- Documentation of taxes paid to other states
Step 2: Calculate Total Use Tax
- Apply 6.25 percent state tax
- Add local tax based on your location
- Subtract eligible credits
Step 3: Complete the Form
Include:
- Name and address
- Total purchase price
- Total tax due
- Credit documentation (if applicable)
Step 4: Choose Filing Method
- Mail paper form
- File online (for certain purchases)
- Visit a Comptroller field office
Step 5: Make Payment
- Check or money order (paper filing)
- Electronic payment or credit card (online)
Keep copies of all records.
Common Mistakes and How to Avoid Them
Not Knowing You Owe Use Tax
Many people assume online purchases are tax-free. They’re not.
Using the Wrong Form
- Do not use Form 01-156 if you have a permit
- Do not use it if you're collecting tax from customers
Miscalculating Local Tax
Local rates vary. Always verify using the official rate locator.
Not Claiming Credits
Failing to claim out-of-state tax credits means overpaying.
Missing Deadlines
Track the one thousand dollar threshold carefully.
Poor Documentation
Always include clear, legible proof of:
- Purchases
- Tax payments
- Credits claimed
What Happens After You File
Processing Timeline
- Paper filings: several weeks
- Online filings: immediate receipt (for certain purchases)
Review Process
The Comptroller may:
- Check calculations
- Request additional documents
- Contact you for clarification
If You Underpay
You’ll receive a notice including:
- Remaining balance
- Penalties and interest
- Payment instructions
If You Overpay
You can:
- File an amended return
- Request a refund with documentation
Long-Term Impact
- Each filing stands alone
- No ongoing account is created
Enforcement Risks
Failure to pay may result in:
- Tax liens
- Asset seizure
- Collection actions
- Possible legal consequences
FAQs
What’s the difference between sales tax and use tax?
Sales tax is collected by the seller at purchase, while use tax is paid directly by the buyer when the seller didn’t collect tax. Both apply at the same rate and ensure Texas receives proper tax revenue.
Do I really have to report online purchases?
Yes. If no Texas tax was charged at checkout, you are required to report and pay use tax for items used in Texas.
Can I report all purchases once a year?
Only if your total use tax liability stays below one thousand dollars. Once you exceed that amount, you must file the following month.
What if I already paid tax in another state?
You may claim a credit. If that state’s rate is lower, you’ll owe the difference to Texas.
Do I need to pay local use tax too?
Yes. Local tax depends on where the item is used, not where it was purchased.
What happens if I’m audited?
You may need to provide receipts and documentation. If underpayment is found, you’ll owe additional tax plus penalties and interest.
I missed the deadline—what should I do?
File immediately and include penalties and interest. Delays increase costs and risk enforcement actions.
Sources
All information in this guide comes from official Texas Comptroller publications and web pages, including:
- Use Tax page
- Sales and Use Tax Forms
- Filing Requirements
- Penalties for Past Due Taxes
- Sales and Use Tax FAQs
Available at comptroller.texas.gov.
