Texas direct-to-consumer (DTC) wine shipping rules and regulations

DTC License Required: Yes

License Type: DTC Permit

License Fee: $500

License Expiration: 2 years from issue date

License Bond: N/A

State Sales Tax: Yes

State Sales Tax Rate: 6.250%

Local Sales Tax: Yes

Local Sales Tax Range: 0.125%–2%

Sales Tax on Shipping: Yes

Alcohol Excise Tax: $0.204/gal–$0.516/gal

Consumer Limit: 9 gallons per person during a calendar month not to exceed 36 gallons during any 12-month period.

Per State Aggregate: 35,000 gallons shipped into Texas annually

Sales and Use Tax: Quarterly by the 10th

Excise Tax: Monthly by the 15th if more than 5,000 gal/year shipped, Quarterly by the 15th if less than 5,000 gal/year.

Record Retention: At least 5 years

Product Restrictions: Only wines produced or bottled by the permittee may be sold and shipped to consumers.

Product Registration: Not required

Registration Fees: N/A

Product Requirements: All wine sold or shipped by an out-of-state winery direct shipper’s permittee must be in a package that is clearly labeled as containing wine.

*Nearly all states have some kind of rule regarding how wine must be labeled when being shipped direct to consumer. Please check for the unique rule for your state.

Tax can get complicated when it comes to direct-to-consumer (DTC) shipments. The beverage alcohol industry is different from other industries in that licensed alcohol shippers are required to register for sales tax in most states, independent of economic or physical nexus.

Depending on the state, sales and use tax can be applied at the state, county, city, or special district levels. Address accuracy is important to determine if a location falls into an incorporated or unincorporated section of a county or a special district.

On top of the sales tax requirements, alcohol taxes also apply to DTC shipments. Several states have “markup” taxes, where the retail value of the alcohol is multiplied by a percentage rate. Most of these markup taxes are either required or can be passed through to the consumer. 

Traditional “gallonage”-based excise taxes are also usually due on DTC shipments. Most of the time these are factored into the price of the item and not passed through to the consumer. In a few cases, these excise taxes are required to be passed on to the consumer.

Rules and regulations for your winery, brewery, or other beverage alcohol business change frequently. Avalara for Beverage Alcohol helps distill the beverage alcohol compliance process so you can focus on your business.