Texas Tobacco License: 2026 Retailer & Wholesaler Permit Guide

In the State of Texas, selling cigarettes, cigars, or e-cigarettes requires more than just a standard business license. To operate legally, businesses must secure a specific permit from the Texas Comptroller of Public Accounts. Navigating the biennial renewal cycles and the specific fee structures for vapor vs. traditional tobacco products can be a complex administrative burden.

At Gerald Franklin Agency (GFA), we specialize in end-to-end compliance for Texas retailers and wholesalers. Whether you are launching a new convenience store or managing a fleet of distribution vehicles, we provide the expert guidance needed to secure your Texas tobacco license without delay. Led by former state regulatory staff, GFA ensures your permits are filed correctly in the Comptroller’s Webfile system, keeping your business audit-ready in 2026.

 

Understanding the 2026 tobacco & e-cigarette permit types

Texas law distinguishes between traditional tobacco products and electronic nicotine delivery systems. Most modern retailers require a Combination Permit to cover their entire inventory.

Retailer cigarette, cigar & tobacco permit (AP-193)

This is the standard permit for any business selling traditional cigarettes, cigars, or loose tobacco.

• Permit Term: Valid for two years.
• 2026 Cycle: Permits expire on May 31, 2026.
• Base Fee: $180.00 (Prorated based on the month of application).

E-cigarette retailer permit (AP-242)

Required for any business selling vapes, e-liquids, or electronic nicotine devices.

• Reduced Fee: If you already hold a traditional tobacco permit for the same location, the E-cigarette permit fee is reduced to $90.00.
• Standalone Fee: $180.00 for businesses selling vapor products exclusively.

 

Key requirements for Texas tobacco retailers

To qualify for a tobacco license in 2026, your business must meet several strict “Pre-Filing” requirements:

1. Active Sales Tax Permit: You must have an active Texas Sales and Use Tax Permit for each specific commercial location.
2. Commercial Location Mandate: A tobacco permit will not be issued to a residential address, a postal box, or a public storage unit. The location must have regular, posted business hours.
3. Entity Consistency: Your ownership info must perfectly match your filings with the Secretary of State and the IRS.
4. $2,000 Penalty Warning: Selling tobacco products without a valid permit can result in a fine of up to $2,000 per day of operation and potential criminal charges.

 

The 2026 renewal cycle: don’t miss the may 31st deadline

Retailer permits in Texas follow a biennial cycle that ends on May 31 of even-numbered years.

Important for 2026:

All current tobacco and e-cigarette retailer permits expire on May 31, 2026. GFA recommends initiating your renewal in March or April to ensure your new permit arrives before the old one expires. Failure to renew on time results in a $50.00 late fee in addition to your standard permit costs.

 

Wholesale, distributor, and import permits

GFA also provides high-level support for the middle and upper tiers of the tobacco industry:

• Distributors & Bonded Agents: $300 annual fee.
• Wholesalers: $200 annual fee.
• Vehicle Permits: $15 annual fee per vehicle used for tobacco distribution.

Non-Settling Manufacturer (NSM) Fees: We assist distributors in calculating the monthly “Special Fee” on cigarette sticks from manufacturers not part of the Master Settlement Agreement.

 

Texas Tobacco License: Frequently Asked Questions

How much is a tobacco license in Texas?

The base fee for a 2-year retail permit is $180.00. However, the Comptroller uses a prorated table. For example, if you apply in an odd-numbered year, your fee may be significantly lower to align you with the even-numbered year renewal cycle.

Can I buy tobacco from another retailer to sell in my store?

No. Texas law requires retailers to purchase their inventory exclusively from permitted Texas distributors or wholesalers. Purchasing from a “Big Box” club store or another retailer is a major violation that can lead to permit forfeiture.

Do I need a separate permit for each store location?

Yes. Tobacco permits are location-specific. If you own three convenience stores, you must have three distinct Sales Tax permits and three distinct Tobacco permits. GFA specializes in managing “Multi-Location Portfolios” for retail chains.

 

Get the Expert Edge with GFA

Don’t let a “simple” permit application turn into a regulatory nightmare. Gerald Franklin Agency provides the turn-key support your business deserves. We manage the applications, the renewals, and the compliance audits so you can focus on your customers.

Call Gerald Franklin Agency today to secure your 2026 Texas Tobacco License. We do the work, so you can grow your business.