Texas Annual Franchise Tax Report Filing Requirements: Deadlines, Thresholds, and Forms

If you own or manage a Texas business, the annual franchise tax filing is one of the most important compliance tasks on your calendar. Texas uses this report to determine whether your entity owes franchise tax, whether you qualify for an exemption from tax payment, and whether your company remains in good standing with the state.

The filing rules can feel confusing because Texas does not treat every entity the same way. Some businesses must file a full franchise tax report. Others only need to file an information report. And even when no tax is due, the filing obligation may still exist.

This guide explains how the Texas annual franchise tax report works, who must file, when it is due, which forms apply, and what happens if you miss the deadline.

What is the Texas annual franchise tax report?

The Texas franchise tax is a privilege tax imposed on taxable entities formed in Texas or doing business in Texas. The annual franchise tax report is the filing used to report revenue and determine whether tax is owed.

In practical terms, the annual filing serves two purposes:

• It tells the Texas Comptroller whether your entity owes franchise tax.
• It updates state records with current ownership or public information about the business.

For many Texas entities, the annual filing is required even when the entity owes no tax.

Who has to file?

Most taxable entities organized in Texas or doing business in Texas must participate in the franchise tax reporting process. That includes many common entity types such as:

• Limited liability companies (LLCs)
• Corporations
• Limited partnerships
• Professional associations
• Financial institutions

Some entities may be exempt from franchise tax under separate rules, but if your business is a taxable entity, you should assume the annual filing rules apply unless you have confirmed an exemption.

When is the Texas franchise tax report due?

The annual franchise tax report is due May 15 each year. If May 15 falls on a weekend or legal holiday, the due date moves to the next business day.

That deadline applies to the annual franchise tax report and the related information report. If you need more time, Texas allows extension requests, but the request must be timely and filed on or before the original due date.

What forms do I need to file?

Texas no longer uses the old system where every filing followed the same path. The correct form depends on your revenue and filing situation.

1. EZ Computation Report

You may file the EZ Computation Report if your entity or combined group has annualized total revenue of $20 million or less. This option is simpler, but it limits the deductions and credits you can claim.

If you choose the EZ route, you generally cannot:

• Take margin deductions for cost of goods sold or compensation
• Claim franchise tax credits
• Carry over certain temporary credits to a future period

2. Long Form Report

You must use the Long Form Report if your entity is not eligible for EZ Computation or chooses not to use it. This form is also required if you plan to claim deductions, credits, or carryforward items that are not allowed under EZ Computation.

3. Public Information Report or Ownership Information Report

Every qualifying business must also file the correct information report.

• Corporations, LLCs, limited partnerships, professional associations, and financial institutions usually file a Public Information Report, or PIR.
• Other legally formed entities typically file an Ownership Information Report, or OIR.

The information report is due at the same time as the annual franchise tax report.

Do I have to pay franchise tax?

Not every business owes tax, but many still have a filing obligation.

For 2026 and 2027 reports, the no tax due threshold is $2.65 million in annualized total revenue. If your business is at or below that threshold, you do not owe franchise tax.

Even if no tax is due, you generally still must file the required PIR or OIR.

If your revenue is above the threshold, you may owe tax and must file the appropriate franchise tax report form.

What happened to the No Tax Due Report?

Texas discontinued the No Tax Due Report for reports originally due on or after January 1, 2024.

That means many businesses that once filed a separate no-tax-due form now follow a different process:

• If revenue is at or below the threshold, the business does not file a No Tax Due Report.
• The business still files the required PIR or OIR.
• If revenue exceeds the threshold, the business files the appropriate franchise tax report.

This change is important because some business owners still search for the old No Tax Due Report form and assume it is required. For current filings, it is not.

How does Texas decide which report applies?

The filing path depends mainly on annualized total revenue and the type of entity.

In general:

• At or below the no tax due threshold: no franchise tax is owed, but PIR or OIR is still required.
• Above the no tax due threshold and eligible for EZ Computation: file the EZ Computation Report.
• Above the no tax due threshold and not eligible for EZ Computation, or choosing not to use it: file the Long Form Report.

Texas uses annualized total revenue, not just raw receipts, so short accounting periods may need to be annualized before comparing them to the threshold.

Where do I file?

Texas franchise tax filings are usually submitted through the Comptroller’s online filing system, Webfile. Depending on the filing type, you may also be able to submit forms by mail or through approved tax preparation software.

Before you file, you may need:

• Your Texas taxpayer number
• Your Webfile number
• Your entity’s legal name and address
• Revenue and deduction records for the relevant accounting period
• Ownership or officer information for the PIR or OIR

If you have not used Webfile before, locate your Webfile number from a notice or filing reminder from the Comptroller.

What information should I gather before filing?

Good preparation can make the filing process much easier. Gather the following before you start:

• Federal tax return data for the relevant accounting period
• Gross receipts and annualized revenue calculations
• Cost of goods sold or compensation data, if you plan to use deductions
• Ownership, officer, member, or manager information
• The entity’s accounting period beginning and ending dates
• Any prior year filing records

If your reporting period is shorter or longer than 12 months, be careful to annualize revenue correctly before deciding which Texas form applies.

What if my business does not owe tax?

If your annualized total revenue is at or below the no tax due threshold, you do not owe franchise tax. But that does not always mean you can skip filing.

You generally still need to file the required information report. Failing to file that report can still put your account out of compliance.

This is one of the most common mistakes Texas business owners make. They assume that no tax due means no filing at all. In Texas, the information report still matters.

What if I miss the deadline?

Missing the Texas franchise tax deadline can create serious problems even if your business does not owe tax.

Possible consequences include:

• Late filing penalties
• Interest on tax due amounts
• A forfeited right to transact business in Texas
• Difficulty obtaining tax clearance or reinstating good standing

The Comptroller may issue a notice if your account is not current. If the problem is not resolved, the state can forfeit the entity’s right to do business in Texas.

What if my entity is closing, merging, or withdrawing?

If your Texas entity stops doing business, converts, merges, or terminates, you may need to file a final franchise tax report.

In general, a final report is due 60 days after the entity ceases doing business in Texas. This is separate from the regular annual filing deadline, so don’t assume the May 15 date still controls a closing entity’s final filing.

Common mistakes to avoid

Texas franchise tax compliance often breaks down because of a few recurring errors:

• Missing the May 15 deadline
• Assuming no tax due means no filing obligation
• Filing the wrong information report
• Forgetting to annualize revenue correctly
• Using outdated forms or instructions
• Ignoring Comptroller notices until the account is already delinquent

A little advance planning can prevent these issues.

How Zenind can help

Keeping a Texas business compliant is easier when your formation and maintenance records stay organized from the start. Zenind helps business owners stay on top of entity compliance, making it simpler to manage the filings and records that support annual state obligations.

If your business is newly formed or growing across state lines, staying organized now can save time later when annual reporting season arrives.

Texas franchise tax FAQ

Is the franchise tax the same as income tax?

No. Texas does not impose a personal state income tax, and the franchise tax is not the same as a federal income tax filing. It is a state-level privilege tax based on entity activity and revenue rules.

Do sole proprietors have to file?

Sole proprietorships are generally not treated the same as taxable entities for Texas franchise tax purposes. The filing rules usually apply to organized business entities such as LLCs and corporations.

Can I file late if I owe nothing?

Late filing can still create penalties and compliance issues even when no tax is due. If the filing was required, file as soon as possible and resolve any notices with the Comptroller.

How do I know whether I owe tax or only need an information report?

Start by reviewing your annualized total revenue for the report year. If you are at or below the threshold, you generally do not owe franchise tax but still need the information report. If you are above the threshold, you likely need to file the applicable franchise tax report as well.

The bottom line

The Texas annual franchise tax report is a core compliance requirement for many Texas businesses. The May 15 deadline, the no tax due threshold, and the continued need for PIR or OIR filings all matter. Even if your business owes no tax, you may still have to file something every year.

If you keep your entity records current, track revenue carefully, and use the correct form, you can stay ahead of Texas franchise tax obligations and protect your company’s good standing.