Last updated: February 23, 2026
Texas is one of the best states in the country for food trucks. The combination of a massive population, deep food culture, year-round event seasons, and a business-friendly regulatory environment makes it a natural fit. Cities like Austin, Houston, Dallas, and San Antonio have thriving street food scenes, and the state legislature has been steadily removing barriers for mobile food vendors. But you still need the right permits, equipment, and insurance before you fire up the grill.
This guide covers every requirement, cost, and step to legally start and operate a food truck in Texas in 2026, including the major changes coming from HB 2844 and what they mean for new operators.
Food Truck Requirements in Texas at a Glance
| Requirement | Agency | Cost | Timeline |
|---|---|---|---|
| LLC Formation (Certificate of Formation) | TX Secretary of State (SOSDirect) | $300 | 3-5 business days |
| Federal EIN | IRS | Free | Immediate (online) |
| DSHS Mobile Food Unit Permit | TX Dept. of State Health Services | $258/year | 2-4 weeks (includes inspection) |
| Local City/County Health Permit | City or county health department | Varies ($100-$500) | 1-4 weeks (until July 1, 2026) |
| Food Handler Training (all employees) | DSHS-accredited provider | $7-$15 per person | 2-4 hours (online available) |
| Certified Food Manager | ServSafe / ANSI-accredited exam | $50-$275 | 1-2 weeks (exam + processing) |
| Fire Suppression System (UL 300) | Licensed fire protection contractor | $3,000-$6,000 install | 1-2 weeks |
| Sales Tax Permit | TX Comptroller of Public Accounts | Free | 2-4 weeks for certificate |
| General Liability Insurance | Commercial insurer | ~$500/year | Same day |
| Commercial Auto Insurance | Commercial insurer | ~$2,000/year | Same day |
| Workers’ Comp Insurance (optional) | Commercial insurer / TDI | Varies (optional in TX) | Same day |
How to Start a Food Truck in Texas (Step by Step)
Step 1: Form Your Texas LLC
File your Certificate of Formation online at SOSDirect, the Texas Secretary of State’s online filing portal. Total cost: $300. Processing takes 3-5 business days.
Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entities on file with the Secretary of State. You’ll need a Texas Registered Agent with a physical street address in the state.
If you want to operate under a different name (e.g., “Lone Star Tacos” instead of “Lone Star Tacos LLC”), file an Assumed Name Certificate (DBA) with your county clerk. Filing fees vary by county but typically run $15-$50.
Step 2: Get Your Federal EIN
Apply for a free Employer Identification Number at IRS.gov. You’ll receive it immediately when applying online. You need this to open a business bank account, hire employees, and register for your sales tax permit.
Step 3: Get Your DSHS Mobile Food Unit Permit
Texas requires every mobile food establishment to hold a Mobile Food Unit permit issued by the Department of State Health Services (DSHS).
- Cost: $258/year
- Apply at: Texas DSHS Retail Food Establishments
- Inspection required: DSHS or your local health authority will inspect your vehicle, equipment, water systems, and food handling setup before you can operate
- Renewal: Annual
Important – HB 2844 (signed June 10, 2025): The Texas legislature passed HB 2844, which creates a statewide mobile food vendor license effective July 1, 2026. This new license will replace the current patchwork of city-by-city permit requirements. Once it takes effect, a single state license will let you operate across Texas without needing separate city health permits. However, cities will retain authority over zoning, operating hours, and location restrictions.
Step 4: Get Local Health Permits (Until July 1, 2026)
Until the HB 2844 statewide license takes effect on July 1, 2026, you still need to obtain city or county health permits in each jurisdiction where you plan to operate. This is separate from and in addition to your DSHS state permit.
- Cost: Varies by city, typically $100-$500 per jurisdiction
- Major cities: Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso each have their own health department permit requirements and inspections
- Timeline: Plan for 1-4 weeks per city for application processing and inspection
- After July 1, 2026: The statewide license under HB 2844 will eliminate the need for individual city health permits, though cities can still enforce zoning and hours
Step 5: Secure a Commissary (Central Preparation Facility)
Texas requires food trucks to operate out of an approved Central Preparation Facility (commissary). This is where you handle daily operations that can’t be done on the truck itself.
- Fresh water fill-up: Replenish potable water tanks
- Wastewater disposal: Dump gray water and sewage properly
- Food storage: Refrigerated and dry storage for ingredients and inventory
- Equipment cleaning: Wash, rinse, and sanitize items too large for truck sinks
- Monthly cost: $400-$2,000 depending on location and amenities
Your commissary must be a licensed commercial food establishment. You’ll need a written commissary agreement, and health inspectors will verify that you have a valid commissary arrangement during inspections. Find commissary kitchens through local restaurant incubators, shared commercial kitchens, or established restaurants that rent space during off-hours.
Step 6: Get Food Safety Certifications
Texas requires two levels of food safety training for food service operations:
Texas Food Handler Training (All Employees)
- Who: Every food truck employee who handles food
- Provider: Must be a DSHS-accredited food handler training program
- Cost: $7-$15 per person
- Format: Online courses available, typically 2-4 hours
- Validity: 2 years
Certified Food Manager (At Least One)
- Who: At least one person per establishment must hold a Certified Food Manager credential
- Exam: ServSafe or any ANSI-accredited food protection manager certification exam
- Cost: $50-$275 (exam + study materials)
- Validity: 5 years
Step 7: Ensure Fire Safety Compliance
Fire safety is one of the most expensive but non-negotiable requirements for food trucks with cooking equipment. You must pass a local fire marshal inspection before operating, and your truck must meet these standards:
UL 300 Wet Chemical Fire Suppression System
- Required for: Any grease-producing cooking equipment (fryers, grills, griddles)
- Installation cost: $3,000-$6,000
- Service: Semi-annual inspection and maintenance required
- Standard: Must comply with NFPA 96 (Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations)
Fire Extinguishers
- Class K fire extinguisher: Required for cooking operations involving grease and oils ($50-$150)
- ABC fire extinguisher: Required for general fire hazards ($50-$150)
- Both must be inspected annually and tagged
Propane Safety
- Propane systems must comply with NFPA 58 (Liquefied Petroleum Gas Code)
- Annual propane inspection required by a licensed LPG (Liquefied Petroleum Gas) plumber
- Tanks must be properly secured, vented, and accessible
- Shut-off valves must be easily reachable
Step 8: Register for Sales Tax with the TX Comptroller
All prepared food sold from a food truck is taxable in Texas. There is no exemption for food trucks – prepared food is always subject to sales tax.
- State sales tax rate: 6.25%
- Local sales tax: Up to 2% additional (city, county, transit, special purpose districts)
- Maximum combined rate: 8.25%
- Register at: Texas Comptroller of Public Accounts (free)
- You’ll receive a Sales Tax Permit by mail
- Sales tax returns are due monthly, quarterly, or annually depending on volume
Note: Texas has no state income tax, which is a significant advantage for food truck operators compared to most other states. You’ll still owe federal income tax and self-employment tax on your profits.
Step 9: Get Insurance
General Liability Insurance
Covers customer injuries, foodborne illness claims, and property damage at event locations.
- Average cost: ~$500/year
- Typical coverage: $1 million per occurrence / $2 million aggregate
- Many event organizers and commissaries require proof of general liability before allowing you on-site
Commercial Auto Insurance
Your personal auto policy will not cover a food truck. You need a commercial auto policy.
- Average cost: ~$2,000/year
- Covers accidents, collision, comprehensive damage, and liability while driving the vehicle
Workers’ Compensation Insurance (Optional in Texas)
Texas is one of the few states where workers’ compensation insurance is optional. Employers who choose not to carry workers’ comp are called “non-subscribers.”
- Non-subscribers must: File DWC Form 005 with the Texas Department of Insurance (TDI) and post notice to employees
- Risk: Non-subscribers lose certain legal defenses if an employee is injured on the job
- Recommendation: Even though it’s optional, workers’ comp is strongly recommended once you have employees – the liability exposure without it can be significant
Vehicle Registration & CDL Requirements
Your food truck must be registered with the Texas Department of Motor Vehicles (TxDMV) as a commercial vehicle.
- CDL not required if your vehicle is under 26,001 lbs GVWR – most food trucks fall well under this threshold
- A standard Texas Class C driver’s license is sufficient for most food trucks
- Register at your local county tax assessor-collector’s office
Cost to Start a Food Truck in Texas
Budget Build (Used/Converted Truck)
| Item | Cost | Notes |
|---|---|---|
| Used Food Truck (converted) | $30,000-$50,000 | Inspect thoroughly before buying |
| LLC Formation (SOSDirect) | $300 | One-time |
| Federal EIN | Free | Online at IRS.gov |
| DSHS Mobile Food Unit Permit | $258 | Annual renewal |
| Local Health Permit(s) | $100-$500 | Per city (until July 1, 2026) |
| Food Handler Training | $7-$15 | Per employee |
| Certified Food Manager Exam | $50-$275 | Valid 5 years |
| Fire Suppression System (UL 300) | $3,000-$6,000 | Required for grease equipment |
| Fire Extinguishers (Class K + ABC) | $100-$300 | Must be inspected annually |
| Commissary (first 3 months) | $1,200-$6,000 | $400-$2,000/month |
| General Liability Insurance | ~$500/year | $1M/$2M coverage |
| Commercial Auto Insurance | ~$2,000/year | Required for food truck |
| Initial Inventory & Supplies | $2,000-$5,000 | Food, packaging, smallwares |
| Point-of-Sale System | $300-$1,000 | Square, Clover, etc. |
| Branding / Wrap / Signage | $2,500-$5,000 | Vehicle wrap recommended |
| Estimated total: $50,000-$85,000 | ||
Premium Build (New Custom Truck)
| Item | Cost | Notes |
|---|---|---|
| New Custom Food Truck | $100,000-$200,000 | Built to spec with full equipment |
| LLC Formation + EIN | $300 | One-time |
| DSHS Mobile Food Unit Permit | $258 | Annual |
| Local Health Permit(s) | $100-$500 | Per city (until July 1, 2026) |
| Food Safety Certifications | $60-$290 | Handler + Manager |
| Fire Suppression System (UL 300) | $3,000-$6,000 | Often included in custom builds |
| Fire Extinguishers (Class K + ABC) | $100-$300 | Must be inspected annually |
| Commissary (first 3 months) | $1,200-$6,000 | $400-$2,000/month |
| General Liability Insurance | ~$500/year | $1M/$2M coverage |
| Commercial Auto Insurance | ~$2,000/year | Required |
| Business Owner’s Policy (BOP) | ~$1,020/year | Recommended for premium builds |
| Initial Inventory & Supplies | $3,000-$8,000 | Premium ingredients, packaging |
| Point-of-Sale System | $500-$1,500 | Advanced system with reporting |
| Branding / Wrap / Signage | $5,000-$10,000 | Professional design + full wrap |
| Generator (if not built-in) | $3,000-$8,000 | Commercial-grade quiet generator |
| Estimated total: $130,000-$260,000 | ||
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Frequently Asked Questions
Do I need a food truck permit in Texas?
Yes. Texas requires a Mobile Food Unit permit from the Department of State Health Services (DSHS). The permit costs $258/year and requires an initial vehicle inspection. Until the HB 2844 statewide license takes effect on July 1, 2026, you also need separate city or county health permits for each jurisdiction where you operate.
What is HB 2844 and how does it affect food trucks?
HB 2844 was signed into law on June 10, 2025, and creates a statewide mobile food vendor license effective July 1, 2026. Once it takes effect, this single state license will replace the current patchwork of city-by-city health permits. Cities will retain authority over zoning, operating hours, and location restrictions, but they will no longer be able to require their own separate health permits. This is a major win for Texas food truck operators who want to serve in multiple cities.
Do I need a commissary for my food truck in Texas?
Yes. Texas requires food trucks to have a Central Preparation Facility (commissary) for daily operations including fresh water fill-up, wastewater disposal, food storage, and equipment cleaning. Your commissary must be a licensed commercial food establishment, and you’ll need a written commissary agreement. Monthly costs typically run $400-$2,000 depending on location and amenities.
Is food truck food taxable in Texas?
Yes. All prepared food sold from a food truck is subject to Texas sales tax at 6.25% plus local taxes up to 2% (maximum combined rate of 8.25%). You must obtain a free sales tax permit from the Texas Comptroller and collect sales tax on every sale of prepared food.
How much does it cost to start a food truck in Texas?
A budget build using a used or converted truck typically costs $50,000-$85,000, including the vehicle, licensing, fire safety equipment, commissary deposit, insurance, and initial inventory. A premium build with a new custom truck runs $130,000-$260,000, including a professional wrap, advanced POS, and higher-end equipment.
Do I need workers’ comp insurance for my food truck in Texas?
No, workers’ comp is optional in Texas. Texas is one of the few states where employers can choose not to carry workers’ compensation insurance. If you opt out, you are a “non-subscriber” and must file DWC Form 005 with the Texas Department of Insurance and notify your employees. However, non-subscribers lose certain legal defenses if an employee is injured, so workers’ comp is strongly recommended once you have employees.