Texas franchise tax
Texas franchise tax and the Public Information Report.
- Due 15 May
- No tax up to $2.65M
- A report every year
The yearly filing, at a glance
The state's own fees and dates. When we file, the state's fee is passed on at cost.
- Filed with
- The Texas Comptroller of Public Accounts, not the Secretary of State
- Every year
- Public Information Report (Form 05-102)
- Above the threshold
- A franchise tax report as well
- Threshold
- $2,650,000 of annualized total revenue (2026 and 2027 reports)
- Due
- 15 May, or the next business day
- First one
- 15 May of the year after the company became subject to the tax
- Signed by
- An officer, director or other authorized person
- Reinstatement
- $75 with the Secretary of State, at any time, with a tax clearance letter
Most new Texas companies owe $0, and still have to file
Since 2024, a company at or below the threshold files no franchise tax report at all: the No Tax Due Report was discontinued. What it still files every year is the Public Information Report.
That report is due even when no tax is. Leave it unfiled and the company can forfeit its right to do business: it can't sue or defend itself in a Texas court, and its officers, directors, managers and members become personally liable for certain of its debts.
Above the threshold, the company files a franchise tax report with the Public Information Report. If the tax works out under $1,000, the report is filed but nothing is owed.
A one-owner LLC files too, even when its federal tax goes on its owner's return: Texas goes by how the company was formed, not how it's taxed federally.
- Tax rates for 2026 and 2027 reports: 0.375% for retail and wholesale, 0.75% for other businesses.
- The EZ computation, at 0.331%, is open to companies with total revenue up to $20 million.
What the report lists, and how it's filed
The Comptroller passes those details to the Secretary of State, so they're on the public record.
It's filed through the Comptroller's Webfile, by mail, in person at a field office, or with tax software. Webfile needs the company's 11-digit taxpayer number and its 8-digit Webfile number, which starts with XT.
- The mailing address, and the principal office: the US address where the company's records are kept.
- The principal place of business, where it runs day to day.
- For a corporation: every officer, including the president and secretary, and every director. One person can hold all the offices.
- For an LLC: every manager and, if it's member-managed, every member, plus any officers.
If it's late, or missed
A late franchise tax report costs $50, plus 5% of the tax if it's paid 1 to 30 days late, or 10% after that. Interest starts on the 61st day. A late Public Information Report on its own has no $50 penalty.
Companies that miss May's filing are sent a Notice of Intent to Forfeit Right to Transact Business; in 2026 these went out in July and August. Left unresolved, the right to do business is forfeited, and then the registration with the Secretary of State.
There's no time limit to come back: file the missing reports, pay the tax, penalties and interest, get a tax clearance letter from the Comptroller, and file the reinstatement with the Secretary of State for $75.
Mistakes to avoid
- Thinking $0 tax means nothing to file. The Public Information Report is due every year.
- Looking for the Secretary of State's annual report. Texas's yearly filing goes to the Comptroller.
- Listing one owner. A member-managed LLC lists every member, and a corporation every officer and director.
- Using an old threshold. For 2026 and 2027 reports it's $2,650,000.
- Ignoring the notice of intent to forfeit. Once the right to do business is forfeited, owners can become personally liable for some debts.
How we file it for you
For most Texas companies the yearly filing is one short report. The trouble starts when it's missed: forfeiture, then personal liability.
- We file your Public Information Report before 15 May, with every officer, director, manager or member listed correctly.
- Above the threshold, a qualified tax professional prepares the franchise tax report.
- We send you the filed copy and remind you before next May.
- Already forfeited? We file the missing reports, get the tax clearance letter and file the reinstatement.
Our fee $79 per filing, plus the state's fee at cost
Forming a new Texas company? Your first report is included in our Complete package.
Another state? Every state's yearly filing
Questions about the Texas filing
Does a Texas LLC file an annual report?
Not with the Secretary of State. Its yearly filing is the Public Information Report to the Comptroller, due 15 May, plus a franchise tax report if its revenue is above the threshold.
When is my first report due?
On 15 May of the year after the company became subject to the tax. A company formed in 2026 files its first report in 2027; because 15 May 2027 is a Saturday, that's Monday 17 May.
Do I owe franchise tax?
Not if annualized total revenue is $2,650,000 or less (2026 and 2027 reports). You still file the Public Information Report.
What happens if I don't file?
The Comptroller can forfeit the company's right to do business. It then can't sue or defend itself in a Texas court, and its officers, directors, managers and members can become personally liable for certain debts.
Can a forfeited company be reinstated?
Yes, at any time: file the missing reports, pay what's owed, get a tax clearance letter and file the reinstatement with the Secretary of State for $75.