Texas remains one of the most important states for online sellers. If you use marketplaces (Amazon, eBay, Etsy, Walmart) or sell direct (Shopify, WooCommerce), understanding who must collect Texas sales tax—and when—is crucial in 2025. This guide distills the official rules, thresholds, and “gotchas,” with clear action steps and examples tailored to resellers.
1) What counts as a “marketplace facilitator” in Texas
Texas calls them “marketplace providers.” If you operate a website/app/catalog that lists third-party items and processes payments for those sellers, you’re a marketplace provider and are treated as the seller for those sales. Marketplace providers must collect and remit Texas state and local sales and use tax on all sales made through the marketplace when engaged in business in Texas. Texas Comptroller+1
2) Economic nexus thresholds (2025)
Texas uses a $500,000 economic nexus threshold measured over the previous 12 calendar months. Exceeding it requires registration and collection—even with no physical presence. This applies to remote sellers and informs marketplace obligations as well. After you cross the threshold, Texas expects you to obtain a permit and begin collecting by the deadline specified by rule. Sales Tax Institute+2Texas Comptroller+2
Note: Many summaries confirm the figure in 2025; always anchor to the Comptroller’s pages when registering. Texas Comptroller
3) Who collects: marketplace vs. you
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Marketplace providers: Collect and remit on all marketplace sales (state + local). They must also certify to marketplace sellers that they are collecting on their behalf. Texas Comptroller
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Marketplace sellers:
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Generally do not collect on marketplace-facilitated sales once certification is received from the marketplace. Keep that certification in your records. Sales Tax Institute+1
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Do collect and remit on your direct sales (e.g., Shopify) if you exceed the nexus threshold. Sales Tax Institute
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4) Local tax sourcing & the single local use tax rate
Texas sourcing for remote and marketplace sales is destination-based; local tax depends on where the order is delivered. Texas offers a simplified single local use tax rate (1.75%) that remote sellers may elect instead of tracking 1,500+ local rates. Marketplace providers are not eligible to use the single local rate; they must collect the actual destination local rate. Avalara+2Sovos+2
Implication for sellers:
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Your direct remote sales can potentially use the single local rate if you elect it.
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Marketplace sales will be collected at actual local rates by the marketplace.
5) Certification letters, records, and audits
Texas requires the marketplace to certify in writing that it will collect and remit on your marketplace sales. Sellers should retain that certification and related sales records for at least four years (Texas record-retention guidance). This proof matters in audits to avoid duplicate assessments. Texas Comptroller+1
6) Inventory in Texas & franchise tax connections
If your inventory is temporarily stored in a marketplace’s Texas facility, special rules apply:
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Below $500,000 in Texas sales and holding only marketplace inventory with a certified marketplace: you generally don’t need a sales tax permit or collection obligation for those marketplace sales.
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Above $500,000 with inventory in Texas: you must obtain a sales tax permit and collect tax on your direct sales.
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Separate point: storing inventory may create Texas franchise tax responsibility for taxable entities. Texas Comptroller
7) Case study: Multi-channel apparel reseller
Profile: Sophia sells clothing on Amazon (70%), eBay (15%), and her Shopify store (15%). Her last 12-month Texas sales total $620,000.
What happens in 2025:
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Marketplace sales
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Amazon/eBay, as marketplace providers, collect and remit on those sales. They must supply certificationsto Sophia; she keeps them in her records. Texas Comptroller+1
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Direct sales (Shopify)
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Because her Texas volume exceeds $500,000, Sophia must register and collect on Shopify sales. She may elect the Texas single local use rate (1.75%) for those direct remote sales to simplify local tax. Marketplace sales are not eligible for the single local rate. Avalara+1
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Inventory consideration
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With FBA units stored in Texas, Sophia’s entity likely has franchise tax filing responsibility even though marketplaces collect the sales tax on those marketplace orders. Texas Comptroller
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Outcome: Sophia avoids duplicate collection on marketplace orders, remains compliant on direct sales, and simplifies local tax on Shopify by electing the single local rate.
8) Quick compliance checklist (2025)
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Calculate your last-12-months Texas sales (all channels). If ≥ $500,000, register for a Texas sales tax permit. Sales Tax Institute
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Get and retain marketplace certifications that they collect on your behalf. STAR
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Turn on tax for your direct channels; consider the single local use rate election if you’re a remote seller collecting on direct sales. Avalara
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Destination sourcing: ensure your systems calculate local tax by ship-to location for ineligible cases. SXSW
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Keep records 4+ years and reconcile marketplace reports vs. payouts. Texas Comptroller
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If inventory in TX: assess franchise tax obligations. Texas Comptroller
9) FAQs
Do I have to include marketplace sales when testing the $500,000 threshold?
Yes—Texas references total Texas revenue for nexus thresholds; check the Comptroller’s guidance when registering. Sales Tax Institute
Can I use the single local rate for marketplace sales?
No. Marketplace providers cannot use the single local rate; it’s available to remote sellers on their own direct sales if elected. SXSW
What if I don’t yet have the marketplace certification?
Texas guidance indicates you should collect until the marketplace certifies it will collect on your behalf—and then retainthat certification. Sales Tax Institute
Any 2025 changes I should watch?
Industry sources note evolving treatment of marketplace fees and related tech services in 2025; monitor Comptroller updates and trusted tax advisors for effective dates and scope.
