Texas Vending Machine Permits and Licenses

Vending permits and licenses by state · Texas

Texas has no general state license for vending machines, and most operators need only one thing from the state: a free sales and use tax permit from the Comptroller. Texas exempts most food from sales tax, but not food sold from a vending machine. Tax is due on half of food receipts and on all candy and soft drink receipts. A food permit applies only if a machine sells food that is not prepackaged or needs temperature control. Below is each requirement and the law it comes from.

Texas vending requirements at a glance

FreeSales and use tax permit

6.25%State sales tax

8.25%Max combined sales tax

50%Of vending food receipts taxed

Required

Sales tax permit

Sales and use tax permit from the Comptroller if you sell anything taxable. Free.

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Recommended

Resale certificate

Buy inventory tax-free with Texas Form 01-339. You collect the tax when it sells.

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Applies

Tax on vending food

Snacks and other food are taxed on 50% of receipts. Candy and soft drinks on 100%.

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Depends

Food permit

Not needed if every item is prepackaged and needs no temperature control.

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Not required

Trading card license

Pokémon cards need only the sales tax permit.

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Not required

Coin-op machine license

For game, music and skill machines, which may include claw games. Not for machines that only vend merchandise.

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Varies

Local permits

Cities and counties can require business, zoning or health approval.

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Depends

Franchise tax

LLCs at $2.65 million or less in revenue owe no tax but still file a yearly report.

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Last reviewed: October 28, 2026  ·  Sources: Texas Tax Code, Texas Comptroller of Public Accounts, Texas Administrative Code, Texas Department of State Health Services, Texas Secretary of State, Office of the Governor, federal regulations (full list at the bottom)  ·  General information, not legal advice.

• Requirements and laws
• Do you need a license?
• Sales tax
• Food and drinks
• Cards, mystery and toys
• Federal rules
• Business setup
• FAQ
• Sources

Texas requirements and the laws behind them

Do you need a license to run a vending machine in Texas?

Not a vending license. Texas regulates what your machines sell and how you collect tax on it, not the machines themselves. The 2026 to 2027 Texas Business Licenses & Permits Guide from the Governor's Business Permit Office lists two kinds of permits under vending machines: a coin-operated amusement machine license from the Comptroller, and food permits from health departments. Neither one is a general vending license.

If your machines sell anything taxable, like trading cards, toys, candy or soda, the one state permit you need is a sales and use tax permit. Add a food permit if a machine sells food that is not prepackaged or has to be kept hot or cold for safety. Cities and counties can layer on their own business or zoning rules, so check with the city where each machine will sit before you install it.

The coin-operated machine license is for games, not merchandise

Texas licenses and taxes coin-operated machines under Occupations Code Chapter 2153. The Comptroller's guide to the program describes them as machines that play music, offer games of skill or provide amusement, like jukeboxes, pool tables, pinball and arcade games. The statute's definition of a skill or pleasure machine leaves out machines that dispense only merchandise (Sec. 2153.002), so a snack, drink or trading card machine is outside it.

The same definition reaches a machine that dispenses merchandise in connection with skill or pleasure, which may include claw and crane machines. If yours qualifies and sits in someone else's business, you would need the Comptroller's general business license ($200 a year for 50 or fewer machines, paid by November 30) and a $60 yearly occupation tax decal on every machine (Sec. 2153.401). Confirm with the Comptroller before you place one.

Sales tax on vending sales in Texas

The sales and use tax permit

You need a Texas sales and use tax permit if you sell tangible personal property in Texas. The Comptroller treats vending operators as itinerant vendors. Under Comptroller Rule 3.334, a person who sells items through vending machines is an itinerant vendor, and a vending machine is not a place of business.

• Cost: free. Permits are issued without charge (Rule 3.286), though the Comptroller can require a security bond (permit FAQ).
• Coverage: permits are issued for each place of business. A vending machine is not one, so your machines do not each need a permit.
• Where to apply: the Comptroller's online tax registration application. Allow 2 to 3 weeks.
• Local tax: a vending sale happens where the machine is. Collect the local tax for the city, county, transit authority or special purpose district at each machine's address (Publication 94-105). The Sales Tax Rate Locator gives the rate for any address.
• Bulk-only operators: if every sale is an exempt bulk vending sale (see below), the permit is optional. Getting one lets you buy that gum, candy and toys tax-free for resale (Rule 3.293(e)).

You collect the tax, so buy your inventory tax-free

The sales tax on vending sales is yours to collect and send to the state. That is why you should not also pay sales tax when you buy the inventory. A permit holder can buy items it plans to resell without paying tax by giving the supplier a resale certificate (Comptroller Rule 3.285).

• Form 01-339, Texas Sales and Use Tax Resale Certificate: the front of the form is the resale certificate. Enter your 11-digit Texas sales and use tax permit number, describe what you sell, and give it to each supplier. Do not send it to the Comptroller. The back of the form is a separate exemption certification, so use the front for inventory. Download Form 01-339 (PDF).
• Blanket certificates: allowed. One certificate can cover ongoing purchases from the same supplier, and the supplier can rely on it until you revoke it in writing (Rule 3.285(c)).
• Permit still pending: the certificate can state that your application is pending and the date you applied. That version is good for 60 days, then you replace it with one showing your permit number (Rule 3.285(g)).
• Out-of-state suppliers: Texas accepts the Multistate Tax Commission's Uniform Sales and Use Tax Certificate and the Border States Uniform Sale for Resale Certificate (Form 01-909). It does not accept the Streamlined Sales Tax certificate for resale (Rule 3.285(h)).

The certificate covers products you resell, not the machines you sell them from. If you pull inventory for your own use or hand it out as free samples, you owe tax on it (Tax Code 151.154). Report it as taxable purchases on your sales tax return, as the Comptroller's use tax FAQ explains. The resale forms are on the Comptroller's sales tax forms page, and its resale certificate FAQ covers the rest.

Sales tax rates

The state rate is 6.25%. Cities, counties, transit authorities and special purpose districts can add up to 2% more, so the combined rate tops out at 8.25% (Texas Comptroller).

What is taxable in a Texas vending machine

Texas exempts most food from sales tax, but the exemption does not reach food sold through vending machines (Tax Code 151.314). The law taxes part of your vending receipts instead (Tax Code 151.007(d)), and Comptroller Rule 3.293(d) sets out how it works:

• Candy and soft drinks: tax on 100% of receipts. Gum counts as candy. Soft drinks include sweetened bottled teas and coffees and flavored water.
• Other food: tax on 50% of receipts. The rule's examples are snack items, milk, tea, coffee, and juice that is more than 50% juice. Snack items include chips, crackers, plain nuts, popcorn, and granola or protein bars not marketed as candy.
• Plain water: exempt, including bottled, spring, sparkling and mineral water.
• Losses: no deduction for spoilage, waste or other losses.
• Tax-included prices: put a sign on the machine stating that the price includes sales tax. You can back the tax out of your receipts before you report.

Bulk vending gets a break. Food, candy, gum and toys sold for 50 cents or less from a bulk vending machine are exempt (Tax Code 151.305). A bulk vending machine dispenses unsorted items at random, without the customer choosing an item, like a gumball or capsule toy machine. Drinks do not qualify. If you also run taxable machines, keep records that show which items came out of the bulk machines.

Anything that is not food is taxable at the full rate: trading cards, sealed Pokémon product, mystery items, toys and general merchandise.

Food and drinks: when you need a food permit in Texas

Texas regulates the vending machine location, not each machine. The Texas Food Establishment Rules (25 TAC 228.2) define it as the room or area where one or more vending machines are installed, plus the storage and service areas, and count it as a food establishment.

The same rule leaves out any establishment that offers only prepackaged foods that are not TCS foods, meaning foods that need time and temperature control for safety. The Department of State Health Services' retail food FAQ says a permit is not required "if a firm only offers prepackaged non-potentially hazardous food, such as bottled drinks or snacks."

• No food permit: sealed shelf-stable snacks, candy, and bottled or canned drinks, when that is all the location offers.
• Food permit: sandwiches, salads, milk and other dairy, or anything that has to stay cold to stay safe (Health and Safety Code 437.001).

Who issues the permit depends on where the machines sit. Your city, county or public health district may issue it. Where none of them does, the Department of State Health Services issues the permit, and you reapply every two years (Health and Safety Code 437.0055). DSHS charges $258 to $773, based on gross annual food sales. The DSHS jurisdiction map shows which health department covers an address.

Since September 1, 2025, a city, county or health district may only require a food permit that DSHS would require of the same business, and its fees generally cannot exceed what DSHS would charge (Health and Safety Code 437.0045 and 437.0126). Check with the local health department for each location anyway.

Texas rules for trading cards, mystery products and toys

Pokémon and other trading cards

Texas has no special license for selling trading cards. They are taxable merchandise, so the sales and use tax permit covers you. The legal questions with card machines are about intellectual property, not state permits: stock authentic product, and keep Pokémon characters and logos off the machine itself. Our guide to the legal side of trading card vending machines covers both, and the Pokémon vending machine guide covers the business.

Mystery products and toys

Blind boxes, mystery bags and capsule toys are merchandise. Like trading cards and toys, they are taxable at the full rate, so the sales and use tax permit covers them. Toys sold for 50 cents or less from a bulk vending machine fall under the bulk vending exemption covered above. We found no special license for selling them from a vending machine. See our guide to mystery vending machines.

Claw and crane machines

Claw and crane machines may need the Comptroller's coin-operated machine license and the $60 yearly tax decal on each machine, covered above (Occupations Code 2153.401). Confirm with the Comptroller before you place one.

Federal rules that apply in Texas and every other state

ADA reach ranges

Where vending machines are provided, at least one of each type has to meet the operable parts rules in the 2010 ADA Standards (sections 228.1 and 309). The parts a customer operates, like the screen, card reader and pickup door, have to sit within reach: between 15 and 48 inches above the floor for an unobstructed reach (section 308).

Calorie labeling for food

If you own or operate 20 or more vending machines that sell food, federal rules require calorie information for any item whose Nutrition Facts label the buyer cannot see before buying (21 CFR 101.8). In glass-front machines, packages that show calories on the front in large enough type can meet the rule.

Schools

Machines that sell food to students during the school day may stock only items that meet the USDA's Smart Snacks nutrition standards. The school day runs from midnight until 30 minutes after the official school day ends (7 CFR 210.11).

Setting up the business in Texas

• Entity: form an LLC with the Texas Secretary of State. The Certificate of Formation (Form 205) costs $300.
• Franchise tax: LLCs and corporations are subject to it, and sole proprietorships are not (Tax Code 171.0002). For 2026 and 2027 reports, an entity with annualized total revenue of $2.65 million or less owes no tax (Texas Comptroller). It still files a Public Information Report (Form 05-102) or Ownership Information Report (Form 05-167) by May 15 each year (No Tax Due reporting).
• Local rules: your city or county may require a business license or zoning approval. The Governor's permit guide tells owners to check with their city or county clerk for local licenses.

Texas vending permit and license FAQ

Do I need a license to put a vending machine in Texas?

Texas has no general vending machine license. If you sell taxable items, you need a sales and use tax permit from the Comptroller, which is free. Add a food permit only if your machines sell food that is not prepackaged or needs temperature control.

Do I need a food permit for a snack vending machine in Texas?

Not if the location offers only prepackaged foods that do not need time and temperature control for safety, such as sealed snacks and bottled drinks (25 TAC 228.2). Sandwiches, milk or anything that must stay cold for safety needs a permit from the local health department, or from DSHS where there is no local program.

Is vending machine food taxed in Texas?

Yes. Texas taxes 50% of receipts from food sold in vending machines, such as chips, nuts and milk, and 100% of receipts from candy and soft drinks. Plain water is exempt, and there is no deduction for spoilage (34 TAC 3.293(d)).

Do I need a license to sell Pokémon cards from a vending machine in Texas?

No special license. Trading cards are taxable merchandise, so the sales and use tax permit covers you. Stock authentic product and keep Pokémon characters and logos off the machine itself.

How much does a Texas sales tax permit cost?

Nothing. The Comptroller issues sales and use tax permits without charge, though it can require a security bond. Allow 2 to 3 weeks for an online application.

Do I pay sales tax on inventory I buy for my vending machines in Texas?

Not if you buy it to resell. Give your supplier Form 01-339, the Texas Sales and Use Tax Resale Certificate, with your permit number. You then collect and send in sales tax when the items sell from your machines. Inventory you use yourself or give away is taxable.

Do I need a coin-operated machine license for a vending machine in Texas?

Not for a machine that dispenses only merchandise. The license and the $60 yearly decal on each machine are for music, skill and pleasure machines such as arcade games and jukeboxes, and the definition reaches claw and crane machines that hand out merchandise as part of a game.

Are gumball and capsule toy machines taxed in Texas?

Food, candy, gum and toys sold for 50 cents or less from a bulk vending machine are exempt from sales tax (Tax Code 151.305). Drinks do not qualify, and items priced over 50 cents do not get the exemption.

Sources

1. Texas Tax Code Chapter 151, sales and use tax (Secs. 151.007, 151.154, 151.305, 151.314)
2. 34 TAC 3.293, Food; Food Products; Meals; Food Service (vending machine sales)
3. 34 TAC 3.285, Resale Certificate; Sales for Resale
4. 34 TAC 3.286, Seller's and Purchaser's Responsibilities (permits)
5. 34 TAC 3.334, Local Sales and Use Taxes (itinerant vendors, vending machines)
6. Texas Comptroller, Sales and Use Tax: rates
7. Texas Comptroller, Sales Tax FAQ: Obtaining a Sales Tax Permit and Online Tax Registration Application
8. Texas Comptroller, Publication 94-105, Local Sales and Use Tax Collection
9. Texas Comptroller, Sales Tax Rate Locator
10. Texas Comptroller, Form 01-339, Texas Sales and Use Tax Resale Certificate
11. Texas Comptroller, Sales and Use Tax Forms (resale and exemption certificates, Form 01-909)
12. Texas Comptroller, Sales Tax FAQ: Resale Certificates and Purchases/Use Tax
13. Office of the Governor, 2026 to 2027 Texas Business Licenses & Permits Guide
14. Texas Occupations Code Chapter 2153, coin-operated machines
15. Texas Comptroller, Coin-Operated Machine Regulation and Taxation and Coin-Operated Machines Taxes and Fees
16. 25 TAC 228.2, Texas Food Establishment Rules definitions
17. Texas Health and Safety Code Chapter 437, food establishments
18. Texas DSHS, Permits for Retail Food Establishments, Retail Food FAQs and Jurisdiction Map
19. Texas Comptroller, Franchise Tax: rates and thresholds and No Tax Due Reporting for 2024 and Later
20. Texas Tax Code Chapter 171, franchise tax (Sec. 171.0002)
21. Texas Secretary of State, Form 205, Certificate of Formation for a Limited Liability Company
22. 2010 ADA Standards for Accessible Design and U.S. Access Board guide to operable parts
23. 21 CFR 101.8, calorie labeling of food in vending machines
24. 7 CFR 210.11, competitive food standards (Smart Snacks)