Starting a cigar or tobacco store in Texas? Before you hang your first sign or stock the humidor, there’s one legal step every Texas tobacco shop must take: securing a retail permit.
If you don’t meet Texas licensing requirements, you won’t be able to legally sell tobacco products. Not having the proper permits can also lead to hefty fines or shutting your business down.
Learn how to get a tobacco license in Texas in six steps (and what to expect).
Step 1: Choose the Right License Type
The Texas Comptroller of Public Accounts issues several types of tobacco-related permits. For most new retail tobacco shops, you need the Cigarette/Tobacco Retailer Permit. This license lets you sell cigars, cigarettes, pipe tobacco, loose leaf, and similar products to consumers.
You also need an active Texas Sales Tax Permit for each business location. If you’re opening more than one storefront, each will need its own permit.
Step 2: Apply Through the Texas Comptroller
The next step to get a tobacco license in Texas is to visit the Texas eSystems Portal. Set up an account if you don’t already have one, then follow these steps to apply for your retailer permit:
- Select “Cigarette/Tobacco Products Permit” from the menu.
- Choose the “Retailer” option when prompted.
- Enter the required information, like legal business name, physical store address, and federal EIN or SSN.
- Submit your application and pay the required fees.
Make sure to disclose any past license revocations or felony convictions related to tobacco tax fraud. These don’t automatically disqualify you, but the state requires full transparency before issuing approval.
Step 3: Pay the Required Fees
Once your application is complete, you pay for the certificate. To get a tobacco license in Texas, retailers pay $180 per location for a two-year permit. For distributors, the cost is $300, and for wholesalers, it's $200. Each type of business needs its own license.
To finish up this step:
- Pay online through the Texas eSystems Portal.
- Use a credit card or electronic check.
- Download your receipt and keep it with your business records.
The state won’t refund unused time if your business location closes before your permit expires, so apply when you’re ready to launch.
Step 4: Wait for Review and Approval
After submitting your application and payment, the Comptroller’s office will begin a background review. They check for criminal history related to fraud, tax evasion, or tobacco violations, and confirm that your business is in good standing.
They may contact you if they discover unpaid tobacco product taxes, a revoked past permit due to underage sales, or missing information. Otherwise, the Comptroller will issue your license and mail the certificate to the business address.
Most applications are processed within three business days. Do not start selling tobacco products until you have the physical license posted in your store.
Step 5. Check Local Ordinances Before You Open
Getting your state tobacco license is only part of the setup process. Some Texas cities and counties have additional rules that apply to tobacco retailers. For instance, in Dallas, if you sell tobacco paraphernalia, you cannot operate within 1,500 feet of another shop.
Before you launch:
- Contact your city or county clerk to ask if a local tobacco permit or registration is required.
- Review zoning laws to make sure your business location allows tobacco sales.
- Check signage restrictions — cities like Fort Worth limit where and how tobacco ads can appear.
- Confirm distance rules from schools, churches, or parks, which may differ from state law.
Getting ahead of those requirements helps avoid delays, fines, or forced relocation.
Step 6. Post Your License and Follow the Rules
When your tobacco sales certificate arrives, post it where customers and inspectors can see it, as required by Texas law. You can now legally sell tobacco, but you’ll have to follow compliance rules:
- Check IDs for everyone under 30 and refuse sales to anyone under 21.
- Source tobacco from a licensed Texas distributor.
- Keep purchase invoices on-site for at least four years.
- Train staff on tobacco laws and have them fill out Form 69-117.
- Collect the appropriate sales tax on cigarettes, cigars, and other products like vapes.
Inspectors from the Comptroller’s office can show up unannounced. If you violate any part of the law, the penalties stack up quickly, starting with fines and escalating to license suspension or permanent revocation.
Get a Tobacco License in Texas and Support Your Business With Cigars POS
Now you know how to get a tobacco license in Texas, but what does it take to run a successful shop? You need a reliable point of sale (POS) system that keeps you compliant, organized, and ready for inspections from day one.
Cigars POS is built specifically for tobacco retailers. It helps you track inventory, verify age, apply taxes at checkout, and keep clean records for every sale.
Start your free trial today and get a reliable system before your first sale.
