Free Texas Promissory Note: Complete Legal Template

Written promise to pay a debt

Sales Tax: 6.25%Notary: $6-$10Witnesses: 1

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PROMISSORY NOTE
State of Texas

Principal Amount: $[AMOUNT]
Date: [DATE]

FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to [LENDER NAME] ("Lender"), or order, the principal sum of $[AMOUNT], together with interest.

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS]
City, State, ZIP: [CITY], TX [ZIP]

LENDER:
Name: [LENDER NAME]
Address: [ADDRESS]
City, State, ZIP: [CITY], TX [ZIP]

TERMS:
1. Interest Rate: [RATE]% per annum
2. Payment Schedule: [SCHEDULE]
3. Payment Amount: $[AMOUNT] per [PERIOD]
4. Due Date: [DATE]

LATE PAYMENT: A late fee of $[AMOUNT] will be charged for payments more than [DAYS] days overdue.

DEFAULT: If Borrower defaults, Lender may declare the entire unpaid balance immediately due and payable.

PREPAYMENT: Borrower may prepay without penalty.

GOVERNING LAW: This note is governed by Texas law (TX Statutes).

BORROWER SIGNATURE: _____________________ DATE: _____
    

FAQ: Promissory Note in Texas

Is a Promissory Note required in Texas?

Yes, in Texas, a Promissory Note is required for most transactions of this type. Under Texas Finance Code § 302, the document must include all parties' information, be signed, and witnessed by at least one individual. Failure to use a proper Promissory Note may result in legal complications.

Does a Promissory Note need to be notarized in Texas?

Notarization requirements in Texas (TX) vary by transaction type. Notary fees in the state typically range from $6-$10. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Promissory Note in Texas?

Texas has a base sales tax rate of 6.25%. Depending on the type of transaction documented in your Promissory Note, additional local taxes may apply. Consult with a Texas tax professional for specific guidance on your situation.

Is a promissory note legally binding?

Yes, a properly executed promissory note is a legally binding contract. It must include the principal amount, interest rate (if any), payment terms, maturity date, and signatures of the borrower. Some states require notarization for certain amounts.

What happens if a borrower defaults on a promissory note?

If a borrower defaults, the lender can demand immediate payment of the full balance, charge late fees as specified in the note, report to credit bureaus, and take legal action to collect the debt. The note should specify the remedies available upon default.

Can I charge any interest rate on a promissory note?

No, interest rates are subject to state usury laws, which set maximum allowable rates. Charging interest above the legal limit can result in penalties and may make the entire note unenforceable. Check your state's usury limits.

Where to File Your Promissory Note in Texas

Visit your local County Clerk office to file or notarize your Promissory Note.

Harris County Clerk

Houston

201 Caroline St, Houston, TX 77002

Dallas County Clerk

Dallas

509 Main St, Dallas, TX 75202

Bexar County Clerk

San Antonio

100 Dolorosa, San Antonio, TX 78205

Travis County Clerk

Austin

5501 Airport Blvd, Austin, TX 78751

Promissory Note Costs in Texas

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Texas standard rate: $6-$10
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Texas
Sales Tax6.25%Texas base rate (local taxes may apply)
Witness Requirement1 witnessSingle witness sufficient
Our TemplateFREEDownload instantly, no cost
Fees shown are Texas-specific estimates. Contact your local office for exact pricing.

Texas Promissory Note Requirements

Review the following requirements to ensure your Promissory Note is legally valid in Texas.

Interest rate must comply with usury laws
Payment schedule required
Default terms must be specified
Borrower and lender signatures required
Notarization recommended
Collateral description if secured
Late payment penalty terms
Prepayment clause recommended
Governing law stated
Witness signature recommended

Texas Notarization

While notarization may not be required in Texas, it is recommended. Fees range from $6-$10.

Before You Sign

Review all information carefully. In Texas, a 6.25% sales tax may apply.

Legal Protection

Keep copies of all signed documents. Texas law requires all parties to receive copies of executed documents.

Texas Filing Deadlines

Check Texas deadlines for filing or recording this document with the appropriate county clerk's office.

SMJ
Reviewed & Fact-Checked

Sarah Mitchell, J.D.

Legal Document Specialist

Licensed Attorney, 15+ years experience

Specializes in contract law and legal document preparation

This Promissory Note template for Texas has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Texas Promissory Note Legal Guide

For residents of Texas, ensuring this form is compliant with state-specific requirements is a top priority for legal validity.

For Texas (TX) residents, this Promissory Note is governed by Texas Finance Code § 302. Important details: sales tax at 6.25%, notary costs of $6-$10, and a requirement for 1 witness. The document has indefinite validity once properly executed.

Ensure your transaction is legally sound in Texas with this expertly crafted, state-compliant template.

borrowerlenderprincipal amountinterest ratepayment scheduleloan agreementpromissory note formdebt obligation
A properly executed Promissory Note in Texas protects all parties involved and ensures compliance with TX state law. Below, we cover the critical steps, common pitfalls, and state-specific rules you should be aware of before signing.

Completing Your Promissory Note

The process in Texas is straightforward but detail-oriented. Begin with the header information, proceed through each section methodically, and ensure all TX-required fields are completed. Texas courts take document completeness seriously — missing information can delay or invalidate your filing.

Smart Practices for TX Compliance

Texas has specific rules that differ from neighboring states. Always verify your document against current TX statutes, especially if you're using a template from a previous year. Laws change, and what was valid last year in Texas may need updating for 2026.

How Texas Courts View This Document

Texas courts apply TX statutory standards when evaluating a Promissory Note. Judges look for: clear language, proper identification of parties, lawful purpose, and correct execution formalities. Meeting these standards ensures your document will be upheld if ever challenged.

TX Compliance Checklist

Before finalizing your Promissory Note, verify that it meets Texas's legal standards:
- Full legal names and addresses of all parties
- Clear description of the subject matter
- Consideration or purpose stated explicitly
- Dated and signed by all required parties
- Notarized if mandated by TX statute

Document Information

Document
Promissory Note
State
Texas (TX)
Category
Financial
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
6.25%
Notary Fee
$6-$10

Texas Legal Requirements

Governing Statute:

State Commercial Code

  • Must be in writing for amounts over $500
  • Clear payment terms required
  • Interest rate must comply with usury laws
  • Signature of borrower required

📊 Promissory Note vs. Loan Agreement in Texas

Promissory Note
Loan Agreement
Promissory Note is a promise to pay
Loan Agreement includes detailed terms
Texas usury laws limit interest rates
Notarization in Texas: $6-$10
Comparison based on Texas state law. Requirements may vary by county.

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in Texas may change. Consult a licensed attorney for advice specific to your situation.