Texas Sales Tax for Amazon Sellers

Texas sales tax for Amazon sellers: the short answer

Marketplace facilitator status: Texas has had marketplace facilitator (MF) law in effect since 2019. Texas implemented marketplace facilitator law on October 1, 2019. Amazon collects Texas state + local sales tax automatically for all third-party seller orders shipped to Texas addresses.

What this means for you as an Indian FBA seller: for all your Amazon US sales delivered to Texas customers, Amazon collects the appropriate Texas sales tax (state + applicable local) and remits to the state directly. You see the line items in your Seller Central report. You do not need to register, collect, or remit Texas sales tax on Amazon sales.

Texas sales tax rates

Texas has a 6.25% state base rate. Local jurisdictions can add up to 2%, capping the maximum rate at 8.25%. Major metros (Houston, Dallas, Austin, San Antonio) typically charge the full 8.25%. Amazon handles the local calculation per ZIP code.

FBA fulfillment centers in Texas

Texas has 8+ Amazon FBA fulfillment centers, primarily in the Dallas-Fort Worth area (DFW6, DFW7, DFW8, DFW9, FTW1, FTW3) and Houston metro (IAH3, HOU2). Our Austin, TX warehouse sits near the San Marcos/Austin FBA corridor with fast access to the DFW and Houston center clusters. One of the highest-density FC concentrations in the US.

Marketplace facilitator rules: when you DO have Texas obligations

Three scenarios where Amazon\'s MF coverage doesn\'t apply to you:

1. Selling outside Amazon: if you sell on your own Shopify store, eBay (not always MF), or wholesale to Texas-based B2B buyers, you may have direct obligations once you cross the economic nexus threshold of $500K.
2. Physical presence: if your LLC has a Texas-based employee, office, or owned warehouse, that triggers physical nexus. Texas sales tax registration is required regardless of channel.
3. Owned property & income tax: physical presence may also trigger Texas state income tax obligations on the portion of profit attributable to the state.

If you do need to register

If one of the above applies, registration is via Texas Comptroller of Public Accounts at comptroller.texas.gov. The process typically takes 2-3 business days (faster than most states) and requires your EIN, LLC details, and operating-history information. Filing frequency depends on volume - monthly, quarterly, or annually.

Texas-specific FBA notes

• Texas-domiciled LLCs (most of our clients) have additional annual filings beyond sales tax: the Texas Franchise Tax / Public Information Report, due May 15 annually. Most Indian-founder LLCs under $1.23M revenue owe $0 franchise tax but must still file the No-Tax-Due Report.
• Texas franchise tax is technically a gross-receipts tax on revenue over $1.23M, not income - so deductions are limited. We have clients exceeding the threshold; rate is 0.375% retail or 0.75% other.
• Texas has no state income tax. Federal Form 5472 + 1120 still apply.
• Austin TX warehouse address can serve as your LLC registered address (we offer this for our clients).

Common questions

Does inventory at a Texas FBA center create nexus?

Historically yes (physical presence). Post-MF laws, this distinction is largely moot for sales tax - Amazon collects regardless. For state income tax, inventory presence creates a weak nexus that Texas generally does not pursue aggressively against foreign-owned LLCs whose only state contact is FBA inventory.

Do I need a Texas seller\'s permit for Amazon FBA only?

No, for Amazon FBA-only operations. Texas\'s MF law has Amazon as the registered remitter. You don\'t need your own permit unless you sell directly via other channels above threshold.

What about returns processed in Texas?

Amazon\'s MF remittance covers full refund flows. The sales tax originally collected gets refunded automatically when the order refunds. No separate filing required on your part.

Other state guides

• All states overview
• California sales tax
• Texas sales tax
• New York sales tax
• Complete US sales tax blog post