What is the Texas commission tax?
On October 1, 2025, Texas classified commission fees as taxable. This was part of an update to Rule 3.330. As a marketplace, TPT is required by Texas law to collect and remit this tax on behalf of the state. If you are a Texas resident, this tax will be deducted from your monthly payout. This tax is applied to Sellers whose registered address is in Texas, and is determined by their latest Hyperwallet address. Please keep your address accurate and current in both your Hyperwallet and TPT accounts. If you move in or out of Texas, update your address information on both accounts as soon as possible.
What is this tax for?
Starting on October 1, 2025, Texas imposed a state tax on services that are provided to Sellers in a marketplace. These services, covered by marketplace commission rates, are known as “data processing services.” They include activities like storing product listings and images, and sharing analytics (e.g., conversion data).
What is the tax rate?
The tax rate is applied to 80% of the commission fee for each sale made by Texas Sellers.
The tax rate imposed includes the 6.25% Texas state sales tax plus any applicable local sales taxes (city, county, etc.) where the Seller is located. The rate varies by the Seller's zip code and ranges from 6.25% (state-only) up to 8.25% (state + local).
Premium Seller Example:
- Resource sale: $100
- TPT commission: $20 (20% for Premium Sellers)
- Taxable base (80%): $20 × 80% = $16
- Tax rate: 8.25% (if Seller is in zip code with max rate)
- Commission tax: $16 × 8.25% = $1.32 tax that goes to the state of Texas
Where can I find Texas commission tax information in my account?
You can find information on your individual sales and the associated commission tax on your Sales Details Report. This information is available as of April 8, 2026 in the downloadable report using the “Download Sales Details” button.
Commission tax details can also be found in the “Adjustments to payout” section of your Sales & Earnings Statement.
The commission tax will be shown as $0.00 for non-Texas Sellers and for any transactions that occurred before the TPT implementation date (April 8, 2026).
What address does TPT use to determine if I'm a Texas Seller?
TPT will use your Hyperwallet address to determine if you are a Texas Seller. If you haven’t yet registered for Hyperwallet, your TPT address will be used. Please keep your account addresses accurate and current. If you move in or out of Texas, update your address in Hyperwallet and on TPT as soon as possible.
To update your address in Hyperwallet:
- Log in to Hyperwallet.
- Click “Settings” > “Profile.”
- Make the necessary updates and click “Save.”
To change your address on TPT:
- Log in to your TPT account.
- Click on your profile icon at the top right of the page and select “My Account.”
- Click “Edit” on your “Address” page.
- Enter your updated address and click “Save.”
Will the Commission Tax affect what I see on the Seller Dashboard, Product Insights, or Product Statistics Report?
No, these tools in your account will not show any additional commission tax information. All Earnings shown across the site will reflect the amount before the commission tax is deducted. Your Payout amount will have the commission tax deducted.