Texas sales tax permit and filing for a new restaurant

A new Texas restaurant applies for a sales tax permit with the Comptroller before it makes its first sale, then files a return by the 20th of the month after each reporting period. The Comptroller tells you by letter whether you file monthly or quarterly. Once you pay $10,000 or more in a state fiscal year, the rules on paying electronically tighten, and a late return carries a $50 penalty.

How do you get a Texas sales tax permit?

The Comptroller's sales tax page directs new sellers to the Apply for a Sales Tax Permit page on its website. After approval, you are notified by letter whether you file monthly or quarterly. Have the owner details, the legal name and address, the federal employer identification number and an estimate of monthly sales ready. If you buy an existing restaurant, ask the Comptroller what you need to do about the previous owner's permit.

When is the return due?

Sales and use tax returns are due on the 20th of each month, and when the 20th falls on a Saturday, Sunday or federal holiday, the due date becomes the next business day. The Comptroller's 2026 page lists adjusted dates for June 22, September 21 and December 21. Quarterly filers report in April, July, October and January. Webfile payments must be submitted by 11:59 p.m. Central time on the due date, and paper checks must be postmarked on or before it.

What are prepayments?

Larger taxpayers must make prepayments, due around the 15th of the month. For 2026, the Comptroller's page shows February 17, August 17, March 16 and November 16 as adjusted dates because the 15th fell on a weekend or holiday. Whether you are a prepayment filer depends on your tax history, and the Comptroller notifies you. If you are told to prepay, treat the 15th as a second deadline.

How do you file and pay?

The method depends on what you paid in the previous state fiscal year, from September 1 through August 31:

• Under $10,000: paper forms, Webfile, EDI or Telefile for reports; Webfile EFT or credit card, EDI, TEXNET or check for payment.
• $10,000 to $49,999: the same reporting options, but check is no longer a payment option.
• $50,000 to $499,999: no paper reporting; use Webfile, EDI or Telefile.
• $500,000 or more: no paper reporting, and credit card payment is not offered.

The Comptroller states that filers who paid $50,000 or more must file electronically, and those who paid $10,000 or more must pay electronically.

What are the penalties?

Late returns may be assessed a $50 late filing penalty. Failing to report or pay electronically when required adds a 5 percent penalty. Late payments carry further penalties described on a separate Comptroller page. Late payments can also mean losing the timely filing discount and any prepayment discount.

What should your monthly routine be?

1. Run the sales report by tax category for the full period.
2. Reconcile the tax collected to the amount on the return.
3. Add the mixed beverage tax separately if you serve alcohol, since it has its own report.
4. File and pay at least two days before the due date.
5. Save the confirmation.

What if you close or sell?

File a final return, tell the Comptroller and ask what else you must do. Keep your records. The Comptroller can audit past periods, so do not discard sales reports and tax records when the restaurant closes.

What mistakes should you avoid?

• Selling before the permit is issued.
• Missing the move to electronic payment as your volume grows.
• Treating the 20th as the day to start rather than finish.
• Forgetting to file a return when no tax is due.
• Using the wrong local rate, which the guide on local rates covers.

A first-quarter timeline

Weeks before opening, apply for the permit and wait for the letter that says whether you file monthly or quarterly. In the last week, set the tax rate in the point of sale and run test checks. In the first month, run a daily sales report and reconcile it weekly. In the month after the period ends, run the totals, prepare the return a few days early and pay by the 20th, or the next business day if the 20th is a weekend. Save the confirmation number and file the report. If your first period shows more tax than you planned for, put the money aside in a separate account so it is there when the return is due.

How do you keep tax money separate?

Sales tax you collect is held for the state. Many owners move the tax collected each week into a separate savings account and pay the return from it. That habit protects the business in a slow month, when rent and payroll compete with the return. A business that spends its tax collections on payroll and then cannot pay in full has a debt with penalties, and the interest runs from the due date.

More guides for your business:

• Texas local sales tax rates for restaurants in Houston, Dallas and Austin
• Texas restaurant purchases, resale certificates and taxable items
• Texas mandatory gratuity and sales tax: the 20 percent line

More in the US guides for food businesses.