Texas Sales Tax Bond
Overview
Texas ties its sales tax security requirement to a formula written into the Tax Code: under section 151.253, the Comptroller of Public Accounts fixes the amount of security required in each case, considering the tax expected to become due and the need to protect the state, and the maximum security that may be required is the greater of $100,000 or four times the person's average monthly tax liability. A surety bond from a company authorized to do business in Texas is one of the forms of security the statute accepts, alongside cash bonds, certificates of deposit, U.S. Treasury bonds, and other instruments the Comptroller deems sufficient.
Who Needs This Bond?
Sellers whom the Comptroller has directed to post security for their Texas sales and use tax permit need this bond. The security subchapter of Tax Code chapter 151 applies when the Comptroller determines a permit holder or applicant must secure the payment of taxes — commonly after compliance problems on an existing account or where the Comptroller judges the state needs protection against nonpayment. If your Comptroller notice specifies a security amount for your permit, this bond is the surety-company form of that security.
What is this Bond For?
The bond secures the payment of taxes imposed by Tax Code chapter 151 and all other applicable local sales and use taxes — the exact scope section 151.253(b) describes. If you collect Texas sales tax and fail to remit it, the Comptroller can proceed against the security to recover the unpaid amounts. Under section 151.253(c), a qualifying bond is a continuing instrument that constitutes a new and separate obligation in the penal sum named for each calendar year or portion of one while it remains in effect, and it stays in force until the surety is released and discharged.
When is it Required?
The requirement begins when the Comptroller fixes a security amount for your account — the statute leaves both the decision and the amount to the Comptroller within the statutory maximum. There is also a statutory way out: section 151.254 entitles a person who has filed security to have it returned, refunded, or released if, in the Comptroller's judgment, the person has for two consecutive years continuously complied with the filing and payment conditions of the subchapter.
Where Does it Apply?
This is a statewide Texas requirement administered by the Texas Comptroller of Public Accounts under Tax Code chapter 151, subchapter E. It covers state sales and use tax plus applicable local sales and use taxes, and it applies to sellers wherever they operate in Texas. The Comptroller — not the seller — sets the required amount in each case, up to the greater of $100,000 or four times average monthly tax liability.
How to Buy Online
Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab. Have your Comptroller security notice available, since the bond must be written in the amount the Comptroller fixed for your account. Complete the application, review the bond documents, and pay online — your executed bond is ready to file with the Comptroller.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and the requirements on this page are cited directly to the Texas Tax Code on the state's official statutes site in the Official Sources section below. Confirm the rules for yourself, then complete the online purchase in minutes and keep your permit moving.
Official Sources
The requirements described on this page are verified against the official sources below.
- Forms of acceptable security; Comptroller fixes amount case by case; maximum of the greater of $100,000 or 4x average monthly tax liability; continuing-instrument rule; two-year release provision (§151.254): Texas Tax Code §§151.253–151.254 (Security: Requirements) (verified July 16, 2026)