Yes—Texas has proposed ending sales tax on qualifying fees that a platform provider charges a seller for listing, offering, or facilitating sales. The proposal would cover fees, commissions, and other charges whether calculated per sale or another way, charged when no sale occurs, or deducted from seller proceeds. But a proposal is not the same as an adopted rule: until the Texas Comptroller adopts a final amendment and its effective date arrives, sellers should follow the current rules and invoices for their own fees.
The proposal was published in the Texas Register on October 16, 2026, and the official proposed text says the change would remove the existing marketplace-services provision and add an exclusion for qualifying platform fees. The available official information does not establish a final adoption or effective date. It would not exempt the goods or taxable services sold through a marketplace, or change the marketplace provider’s responsibility to collect and remit tax on marketplace sales. Keep records of fee invoices and tax charged, and confirm the current status with the Comptroller before changing treatment or seeking a refund.
Key takeaways
- Texas proposed excluding qualifying platform fees, but a proposal is not yet a final rule.
- Keep following current fee-tax treatment until an adopted amendment applies.
- The proposal does not change tax on goods sold through marketplaces.
- Marketplace providers collect and remit tax on covered Texas marketplace sales; sellers may still have separate permit or filing duties.
- Save fee invoices and marketplace reports; prior tax payments are not automatically refundable.
Where the Texas proposal stands—and when it could take effect
The Texas Comptroller proposed amendments to Rule 3.330, the rule addressing data processing services. The proposed text was published in the Texas Register on October 16, 2026. It would remove the provision addressing marketplace-provider services and add a rule stating that qualifying platform-provider fees are not taxable data processing or information services.
Publication begins a rulemaking process; it does not itself make the proposed treatment current law. The official proposed text is the best place to check what was proposed, but the available official information does not confirm that a final amendment has been adopted or give a final effective date. Do not change how you handle a fee solely because the proposal exists. Check the Comptroller’s current guidance or ask us to verify the rule’s status and how it applies to your invoices.
Are marketplace-provider fees taxable in Texas right now?
Under the current rule described in the Comptroller’s proposed amendment, certain marketplace-provider services may be treated as taxable data processing services. The Comptroller’s proposal explains that the existing rule identifies services such as storing product listings or photographs, maintaining transaction records, and compiling seller analytics. That does not mean every charge on every marketplace invoice is automatically taxable; the service and the way the charge is characterized matter.
Review the fee description and tax line on each platform statement rather than assuming all commissions, advertising, fulfillment, subscription, or payment charges have the same treatment. If Texas tax is being charged, retain the invoice and supporting records while the proposal is pending. For background, see Is Texas changing sales tax on marketplace and platform fees? and Does Texas tax marketplace commissions—and when could that change?.
Which marketplace and platform fees could be exempt?
The proposed exclusion covers a fee, commission, or other charge imposed by a platform provider on a platform seller for listing, offering, or facilitating sales through the platform. The proposed language says the treatment would not depend on how the charge is calculated, whether a sale occurs, or whether the platform collects the charge directly or nets it against money owed to the seller.
The proposal is broader than online retail alone. The Comptroller’s announcement describes platform fees associated with online marketplaces, prepared-food and grocery delivery, short-term lodging, transportation and ride-hailing, vehicle rental or sharing, pet care, and household, personal, and errand services. The proposed rule—not a platform’s marketing label—would determine whether a particular charge qualifies. Separate services that do not meet the proposed description should not be assumed exempt.
What the proposal does—and does not—change about marketplace sales
The proposal concerns tax on fees charged to sellers for platform services. It does not propose to make the seller’s products tax-free, change whether a product or service is taxable, or eliminate sales tax on a taxable order. Texas Comptroller guidance says marketplace providers engaged in business in Texas must collect, report, and remit state and local sales and use tax on sales made through a marketplace.
For a seller, that means separating two issues: tax on the platform’s charge to you, and tax on the customer’s purchase from you. The proposed fee exclusion would address the first. The marketplace-sales rules continue to govern the second. See Marketplace facilitator rules in Texas for more on the collection arrangement, and Amazon FBA sales tax in Texas for related fulfillment considerations.
What sellers should keep collecting or paying for now
Until a final rule is adopted and applicable, do not treat the proposal as permission to stop paying tax shown on a platform-fee invoice or to change your own sales-tax collection practices. Follow the current treatment for the specific charge, keep invoices and statements, and reconcile tax charged against the underlying fee. If the platform changes its billing treatment, preserve the notice and the date it applies to your account.
Continue to distinguish marketplace orders from sales you make directly through your own store or other channels. A marketplace provider may collect tax on marketplace transactions, while your business may still have its own Texas permit, filing, or tax obligations for direct sales and other activities. The exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
Permits, collection responsibility, and Texas returns
The Comptroller says a remote seller that sells only through a marketplace provider that certifies it is collecting and reporting Texas sales and use tax on the seller’s behalf is not required to hold a Texas tax permit on that basis. That limited rule should not be read as a blanket exemption for every marketplace seller. Direct sales, other business activity in Texas, or a different marketplace arrangement can change the analysis. Texas economic-nexus obligations also depend on the seller’s facts; see Economic nexus in Texas.
For marketplace sales covered by the provider’s collection, the marketplace provider collects and remits the tax and must certify its collection and reporting role to the seller. A seller with a Texas permit may still have to file returns, report marketplace sales as required, and follow the Comptroller’s instructions for tax collected by the provider. The precise return and reporting treatment depends on the seller’s permit, sales channels, and account status. Check the Comptroller’s filing instructions or have a specialist review your account rather than assuming marketplace collection removes every filing duty.
Local tax on online orders
Texas local sales tax on marketplace orders is generally based on the destination where the customer receives the order. The Comptroller’s guidance says marketplace providers engaged in business in Texas collect and remit state and local tax on third-party sales, using the shipping destination for the local rate. For an order picked up or otherwise received at a location different from the shipping address, the applicable sourcing facts may differ, so verify the transaction details.
Marketplace providers are not eligible to use the single local use tax rate described for certain remote sellers. Sellers should not substitute a statewide or simplified assumption for the marketplace provider’s destination-based calculation. Keep order-level records that show the delivery or possession location and the marketplace’s tax reporting.
Can sellers claim refunds for tax paid on marketplace fees?
A proposed rule does not, by itself, establish that previously paid tax is refundable. Whether a business can recover tax charged on marketplace fees depends on the final rule, its effective and any applicable transition provisions, the nature of the fees, who paid or remitted the tax, and the Comptroller’s refund procedures. The available official materials do not establish a general refund entitlement for past marketplace-fee tax.
Keep fee invoices, marketplace statements, proof of payment, and any tax breakdowns. Do not assume that a platform will automatically issue a credit or that a seller can claim a refund directly. Ask the Comptroller or a tax professional to assess the specific periods and charges before filing a claim. If you are also reviewing older Texas liabilities, see Back sales tax and penalties in Texas.
How the proposal compares with current Texas marketplace tax responsibilities
| Issue | Current position described by Texas guidance | What the proposal would change | Practical seller action |
|---|---|---|---|
| Platform fee charged to seller | Certain marketplace-provider services may be treated as taxable data processing services under the current rule. | Qualifying fees, commissions, and charges for listing, offering, or facilitating sales would be excluded from taxable data processing and information services. | Continue current treatment until a final rule applies; retain invoices and verify each fee. |
| Tax on the customer’s marketplace purchase | Marketplace providers engaged in business in Texas collect, report, and remit tax on marketplace sales. | No proposed change to taxability of the goods or services sold to customers. | Keep marketplace orders distinct from direct sales and review provider tax reports. |
| Local tax on marketplace order | The local rate is based on the destination or where the customer takes possession; marketplace providers are not eligible for the single local use tax rate. | No proposed change to destination-based local tax treatment. | Retain order-level delivery or possession information and reconcile marketplace reporting. |
| Seller permit and returns | A remote seller selling only through a provider that certifies collection and reporting is not required to hold a Texas permit on that basis; other activities may create separate obligations. | The fee proposal does not change permit or return rules. | Check certification, sales channels, permit status, and Comptroller filing instructions. |
| Tax already paid on platform fees | The proposal does not itself establish a refund right for prior payments. | Any refund treatment would depend on final rule details and applicable procedures. | Preserve records and confirm eligibility before seeking a credit or refund. |
Frequently asked questions
Will Texas stop taxing marketplace-provider fees?
Texas has proposed excluding qualifying platform fees from taxable data processing and information services. The proposal is not itself a final rule, so sellers should continue following current treatment until the Comptroller adopts an amendment and it applies.
When would Texas stop taxing marketplace fees?
The proposed amendment was published in the Texas Register on October 16, 2026, but the available official information does not confirm a final adoption or effective date. Check the Comptroller’s current rule and guidance before changing how a fee is handled.
Are marketplace-provider fees currently taxable in Texas?
Certain marketplace-provider services may currently be treated as taxable data processing services, including services involving listings, transaction records, or seller analytics. Taxability depends on the actual service and charge, so review the invoice rather than assuming every platform fee has identical treatment.
Which marketplace or platform fees would be exempt?
The proposal would exclude fees, commissions, and other charges imposed on a platform seller for listing, offering, or facilitating sales through a platform. It would apply regardless of calculation method, whether a sale occurs, or whether the fee is deducted from seller proceeds, if the charge meets the proposed language.
Does the proposal affect sales tax on goods sold through marketplaces?
No. The proposal addresses fees charged to sellers by platforms, not the taxability of the seller’s goods or services. Marketplace providers engaged in business in Texas remain responsible for collecting and remitting tax on marketplace sales under current Comptroller guidance.
Do sellers need to keep collecting or paying the tax until the rule is adopted?
Do not treat a proposal as an adopted rule. Continue following current requirements for platform-fee tax and customer sales until a final amendment applies, and retain invoices and transaction records.
Can businesses claim refunds for Texas tax paid on marketplace fees?
The proposal does not itself create a general refund right for tax previously paid. Eligibility depends on the final rule, the specific charges and periods, who paid or remitted the tax, and applicable Comptroller procedures; preserve records and verify before filing.
Who is responsible for collecting Texas sales tax on marketplace sales?
A marketplace provider engaged in business in Texas must collect, report, and remit state and local tax on sales made through its marketplace. The provider must certify its collection and reporting role to marketplace sellers, but sellers should check whether they have separate obligations for direct sales or other Texas activity.
Official sources
- https://www.sos.state.tx.us/texreg/archive/October162026/Proposed%20Rules/34.PUBLIC%20FINANCE.html
- https://comptroller.texas.gov/taxes/sales/marketplace-providers-sellers.php
- https://comptroller.texas.gov/taxes/sales/remote-sellers.php
- https://comptroller.texas.gov/taxes/publications/94-171.php
- https://comptroller.texas.gov/taxes/publications/94-105.php
- https://comptroller.texas.gov/transparency/local/allocations/sales-tax/marketplace.php
Related reading
- Is texas changing sales tax on marketplace and platform fees?
- Marketplace facilitator rules in Texas
- Amazon FBA sales tax in Texas
- Back sales tax and penalties in Texas
- Our sales tax compliance services
Getting this handled
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Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This article is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.