What is trailing nexus?

Most states make you keep filing for a while after you drop below their threshold. California runs through the next full calendar year. Texas uses a rolling twelve months. We track each state's rule so you cancel on the right date, not too early.

Will I get in trouble for canceling a permit?

Not if you do it in the right order. We file every outstanding and final return first, then guide the cancellation. The real risk is canceling early or skipping a final return, which is exactly what we prevent.

Which platforms do you support?

Amazon, Shopify and WooCommerce, with BigCommerce, Etsy, Walmart and eBay supported through manual entry. You can also enter your states by hand on any platform.

Do you file my returns?

Yes. During the wind-down we file the zero-dollar returns so nothing lapses, and once you're deregistered in a state there's nothing left to file.

How is this different from Avalara or TaxJar?

They help you register and file more. We help you deregister and file less. We only charge for the states you keep.

No. TrailingZero is software that flags deregistration opportunities and handles filings. For complex situations we tell you when to bring in your accountant.

Is TrailingZero live?

Yes. Free audits are live now — run yours in minutes. Connect a store read-only or enter your registered states by hand to see which you can cancel and what it saves.

Does Texas have a sales tax?

Yes. The statewide base rate is 6.25%. Remote sellers collect it once they have nexus.

When do I have to register for sales tax in Texas?

When you have physical presence there or cross $500,000 in sales over preceding 12 calendar months (rolling).

Can I cancel my Texas registration if I'm under the threshold?

Generally yes, after clearing Texas's trailing-nexus window and filing a final return.

No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

Seller's guide

Sales tax in Texas

Everything an online seller needs to know about sales tax in Texas: the rate, when you have to register, marketplace rules, filing, and when you can cancel — in plain English.

By John DoeReviewed by Jane Doe, CPAUpdated June 2026How we verify

Statewide base rate: 6.25%
Economic threshold: $500,000 in sales
Marketplace law: Yes
Trailing nexus: ≈ 12 mo
Tax authority: Texas Comptroller of Public Accounts

Source: Texas Comptroller of Public Accounts

Nexus & savings calculator

Estimate whether you still have nexus in Texas — and what canceling could save.

State

Annual sales into Texas

Transactions (orders) per year

Texas no longer counts transactions — only sales matter here.

I have physical presence hereFBA/3PL inventory, an employee, or an office in Texas

Filing frequency

Cost per return

Physical presence
Sales over $500,000
Transactions (not counted here)

Likely eligible to cancel

Based on these numbers you likely no longer have nexus in Texas. You can usually deregister after clearing the trailing-nexus window and filing your final return.

Trailing nexus: Texas applies trailing nexus — expect to keep filing for roughly 12 months after your nexus ends. Confirm the exact window before canceling.

You could stop paying

$600/ yr

How to cancel in Texas →

Estimate only — general education, not tax advice. Confirm with Texas's tax authority before you register or deregister.

Do you need to collect sales tax in Texas?

You have a duty to collect once you have nexus: physical presence (inventory, staff, an office) or economic nexus from crossing $500,000 in sales over preceding 12 calendar months (rolling). Texas has never used a transaction-count trigger — only the sales figure matters.

The Texas rate

State rate is 6.25%. Local taxing jurisdictions (cities, counties, special-purpose districts, transit authorities) may impose up to an additional 2%, for a maximum combined rate of 8.25%.

Marketplace and direct sales

Marketplaces like Amazon collect Texas tax for you, but those sales still count toward your threshold. Direct sales on your own store you collect yourself.

Filing and zero returns

Once registered, Texas requires a return every assigned period even when you owe $0 — miss one and you can face penalties. Filing frequency (monthly, quarterly, or annual) is assigned by the Texas Comptroller based on the amount of tax liability.

When you can cancel

If your Texas returns are mostly $0, you may be over-registered. Canceling your Texas sales tax permit makes sense once your Texas gross revenue has stayed below $500,000 for 12 consecutive months and you no longer have physical presence in the state. You should file a final sales tax return covering your last period of business activity, and be aware that use tax may be owed on any unsold inventory you divert to personal use or give away.

Where TrailingZero fits

TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and maps your real nexus in Texas and flags whether you should register, keep filing, or cancel. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.

Texas Sales tax guide FAQ

Does Texas have a sales tax?: Yes. The statewide base rate is 6.25%. Remote sellers collect it once they have nexus.
When do I have to register for sales tax in Texas?: When you have physical presence there or cross $500,000 in sales over preceding 12 calendar months (rolling).
Can I cancel my Texas registration if I'm under the threshold?: Generally yes, after clearing Texas's trailing-nexus window and filing a final return.
Is this tax advice?: No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

See what you can stop paying in Texas

Run a free audit and see which registrations you can drop — in minutes, no card required.

Start free →Free audit · no card required.

Other states

See all states →

Sources

Primary sources reviewed for this page. Data current as of June 2026.

TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.