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Tax Bond

Texas Continuous Bond of Seller (Sales Tax)

This bond is required for businesses that sell taxable goods or services in Texas. If you collect sales tax from customers, the state requires this bond as a financial guarantee that you'll properly report and pay all collected sales tax to the state. It protects Texas taxpayers by ensuring the state receives the tax …

Overview

What it is.

This bond is required for businesses that sell taxable goods or services in Texas. If you collect sales tax from customers, the state requires this bond as a financial guarantee that you'll properly report and pay all collected sales tax to the state. It protects Texas taxpayers by ensuring the state receives the tax …

Who usually needs it

Retailers, vendors, or businesses applying for or holding a Texas sales tax permit to engage in taxable retail sales, including those selling more than two taxable items in a 12-month period, itinerant vendors without a fixed business location, mixed beverage providers, and permitted retailers who are delinquent in state/local sales or use taxes. The bond g…

Pricing & timing

What to expect.

Generic pricing

Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…

Typical timeframe

Credit-based approval — typically 1–2 business days

Application

What to do next.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. Keep your effective date and renewal date on file with us.
Start the application.

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Details

Bond details.

StateTX
Bond amountVaries by license type or project
ObligeeState of Texas
Bond classTax Bond
CategoryRetail & Sales
BondTexas Continuous Bond of Seller (Sales Tax)
JurisdictionState
Plain descriptionThis bond is required for businesses that sell taxable goods or services in Texas. If you collect sales tax from customers, the state requires this bond as a financial guarantee that you'll properly report and pay all c…
Who needs this bondRetailers, vendors, or businesses applying for or holding a Texas sales tax permit to engage in taxable retail sales, including those selling more than two taxable items in a 12-month period, itinerant vendors without a…
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Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.