The rules every Texas venue shares: TABC certification, the mixed beverage permit and what it costs, closing time, the two mixed beverage taxes, door staff and wages. Cities add their own steps on top.
2a.m.With a Late Hours Certificate; midnight without
TABC certification
2yearsNot required by law; many employers ask
Mixed beverage permit
$5,300New, valid two years
Mixed beverage tax
8.25%Sales tax on drinks, plus 6.7% gross receipts
Minimum wage
$7.25/hThe federal rate applies
Tipped cash wage
$2.13/hTip credit of up to $5.12 an hour
Texasbarrules:TABCcertification,licensesandtax.
What the State of Texas asks of every licensed room, from the staff and the door to the permit, the tax and the end of service. Liquor licenses come from the Texas Alcoholic Beverage Commission.
Staff and the door
TABC seller-server certification
2 years
State law does not require it, but many employers do. TABC says it is for anyone who sells, serves, dispenses or delivers alcohol, and for managers who direct that service. A certificate is valid for two years from the date it is issued.
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It is also the way to qualify for safe harbor. Certify staff within 30 days of hire, keep written policies for responsible service, and stay under three violations in 12 months.
The Texas Department of Public Safety regulates private security. A business with its own security department registers with DPS before it employs commissioned officers or personal protection officers.
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It must also register before employing non-commissioned guards who meet all three tests: they deal with the public, they wear a uniform, badge or patch that suggests security, and they do guard duties such as controlling who comes in. Staff from an outside guard company are covered by that company.
It authorizes selling spirits, wine and malt beverages for drinking on the premises. A new permit costs $5,300 and a renewal $2,650, and permits expire two years after they are issued.
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A conduct surety bond is required. A bar can add a Food and Beverage Certificate, which needs restaurant status or alcohol at 60% or less of total sales.
A mixed beverage permittee with this certificate may sell between midnight and 2 a.m. on any day. It is open in cities and counties of 800,000 or more.
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Without it, service ends at midnight. The fee is for two years, on top of the permit. The four city guides all clear the 800,000 bar.
The permit holder pays a 6.7% gross receipts tax on its drink sales and cannot add it to the price as a separate charge. It may show the amount on the receipt.
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It is the venue’s cost, not the guest’s. It is due on the 20th of the month after each period, and it sits beside the guest’s sales tax on drinks.
Texas charges 8.25% mixed beverage sales tax on drinks served to drink on the premises. The venue collects it and passes it on, as a line on the bill or built into the price.
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Food on the same bill carries the ordinary sales tax: 6.25% state plus up to 2% local. A separately stated service charge of 20% or less, paid to servers and bartenders, is not taxable.
A new on-premises location not licensed for drinking in the last two years posts the 60-Day Sign outdoors for 60 days before TABC can issue the permit.
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Other signs: a complaint sign near the door or till, a pregnancy health-risk sign at each restroom exit in English and Spanish, and a human trafficking sign.
Mixed beverages sell from 7 a.m. to midnight Monday to Saturday. With a Late Hours Certificate, a permittee may also sell from midnight to 2 a.m. on any day.
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The certificate is open in cities and counties of 800,000 or more. Check smaller places with TABC.
In areas with extended hours, drinking or holding a drink to drink in a public place is an offense from 2:15 a.m. to 7 a.m. It is a Class C misdemeanor.
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Last call is 2 a.m. and the room should be clear 15 minutes after.
Selling spirits, wine and malt beverages to drink on the premises takes a Mixed Beverage Permit from TABC, and a Late Hours Certificate if you want to serve to 2 a.m. These are the state steps. Your city adds its own, so check them in your city guide.
1
Set up in AIMS
Complete onboarding in TABC’s Alcohol Industry Management System and choose the retail tier. Paper forms take longer.
TABC asks for a certification from the city or county as well, and a newspaper publication may be required. The city sets that step, its fee and its timing.
A new on-premises location not licensed for drinking in the last two years posts the 60-Day Sign outdoors for 60 days before TABC can issue the permit.
Texas follows the federal rules: a $7.25 minimum wage, and for tipped staff a $2.13 cash wage with a tip credit of up to $5.12 an hour, when the employee gets more than $20 a month in tips.
A mandatory gratuity or service charge is not taxable when it is separately stated, 20% or less of the price of the drinks, and paid to servers, bartenders and similar staff. A tip the customer adds is not taxed.
Texas follows the federal rules: $7.25 an hour. For tipped staff the cash wage is $2.13 an hour, with a tip credit of up to $5.12, when the employee gets more than $20 a month in tips.
State law does not require it, but many employers do. TABC says it is for anyone who sells, serves, dispenses or delivers alcohol, and for managers who direct that service. A certificate is valid for two years from the date it is issued.
It is the protection an employer earns by certifying staff within 30 days of hire, keeping written policies for responsible alcohol service and staying under three violations in 12 months.
Apply for a Mixed Beverage Permit through TABC’s online system. The steps are onboarding, registering the business with the Secretary of State and the Comptroller, the local certification, the 60-day sign for a new on-premises location, and a complete notarized application. TABC says a new license can take 30 to 35 days from a complete application.
TABC charges $5,300 for a new Mixed Beverage Permit and $2,650 to renew it, valid two years. A Late Hours Certificate is $1,100 and a Food and Beverage Certificate is $1,100. These come from TABC’s chart effective 1 September 2021, and TABC says they should not be used to work out local fees.
It authorizes selling spirits, wine and malt beverages for drinking on the premises. A new one costs $5,300 and it expires two years after it is issued. A conduct surety bond is required.
Mixed beverages sell from 7 a.m. to midnight Monday to Saturday. With a Late Hours Certificate, a permittee in a city or county of 800,000 or more may also sell from midnight to 2 a.m. on any day. Sunday’s hours begin with midnight to 1 a.m., then run from 10 a.m. to midnight, and drinks from 10 a.m. to noon need food.
Two taxes apply to a mixed beverage permittee. The guest pays the 8.25% sales tax on drinks. The venue pays a 6.7% gross receipts tax on its receipts and can’t add it as a separate charge to the guest. Both are due on the 20th of the month after the period.
The Department of Public Safety regulates private security. A business with its own security department registers with DPS before employing commissioned officers, personal protection officers, or non-commissioned guards who deal with the public, wear a security-style uniform, badge or patch, and do guard duties. Staff from an outside guard company are covered by that company.
Not when it is a separately stated mandatory gratuity of 20% or less of the price of the drinks, paid to servers, bartenders and similar staff. A tip the customer adds is not taxed.
Sources
VenueStack publishes this guide for general information. We take care to keep it accurate and list our sources and review dates, but we can’t guarantee it is complete, current or correct, and we aren’t responsible for decisions made on it. Nothing here is legal, tax or financial advice. Prices, minimums and wages are estimates from the samples described and don’t represent any particular venue. Venues, events and organisations named here aren’t affiliated with VenueStack and haven’t endorsed this guide.
Data gathered in October 2026. Spotted something out of date? Tell us.