Texas tax help: what owners file, pay and when

Texas tax help for most owners comes down to the franchise tax: corporations, LLCs, S corporations and limited partnerships file a report each year, while a general partnership owned entirely by individuals does not. Reports are next due May 17, 2027, and taxable entities pay 0.75% of taxable margin (0.375% for qualifying retail or wholesale businesses) unless annualized total revenue is $2,650,000 or less. There is no personal income tax. [1][2][3]

Texas tax help: two things set most owners' state tax

Check whether your entity owes franchise tax, then compare your revenue with the no tax due threshold.

LLCs, including single-member and series LLCs, are subject to the Texas franchise tax. Texas has no personal income tax, so members pay no state tax on their share of income. [1]

S corporations are subject to the Texas franchise tax. [1]

Texas taxes businesses through a franchise tax, a privilege tax on each taxable entity formed in Texas or doing business there. For 2026 and 2027 reports the rate is 0.75% of taxable margin (0.375% for entities primarily in retail or wholesale trade), and an entity with annualized total revenue of $2,650,000 or less owes no franchise tax but still files an information report. [2][3][1]

Secretary of State fees to set up or register an entity

Budget for the state filing fee before you form an entity here or register one from another state.

Filing a certificate of formation for a new Texas LLC or for-profit corporation costs $300 with the Secretary of State; LLCs pay the same fees as corporations for similar filings (Business Organizations Code ss. 4.152 and 4.154, in force for 2026). General example for 2026: an LLC formed in November 2026 pays $300 to file. [4]

An out-of-state corporation or LLC that registers to do business in Texas pays $750 to the Secretary of State, and $150 to amend that registration (Business Organizations Code ss. 4.152 and 4.154, in force for 2026). General example for 2026: a Delaware corporation that registers in Texas in December 2026 and later amends its registration pays $900 in total. [4]

Franchise tax reports, information reports and extensions

Mark the report date now, file the information report with it, and ask for an extension before the due date if you need more time.

Every Texas taxable entity files a Public Information Report, signed by an officer, director or other authorized person, or an Ownership Information Report, due on the same date as the annual franchise tax report (Comptroller PIR page, checked October 27, 2026). General example for 2027: the information report for 2027 is due May 17, 2027, with the franchise tax report. [5]

A Texas entity that does not file its information report can lose its right to do business, even if it owes no franchise tax; it then cannot sue or defend in a Texas court, and each officer, director, partner, member or owner can become personally liable for certain of its debts (Comptroller PIR page, checked October 27, 2026). General example for 2027: an LLC under the no tax due threshold that skips its information report due May 17, 2027 risks forfeiture. [5]

Each member of a Texas combined group that is organized in Texas or has nexus in Texas files its own information report (Comptroller PIR page, checked October 27, 2026). [5]

A Texas business that cannot file its franchise tax report by the due date can get a filing extension by asking on time and generally paying either 100% of the tax paid the prior year or 90% of the tax that will be due with the current report by the original due date. A business that must pay by electronic funds transfer gets a shorter first extension and needs a second extension to reach the final extended date. The dates are in the Texas tax calendar on this page (Comptroller extension page, checked October 27, 2026). General example for 2027: a business that asks on time and pays 90% of its 2027 tax by the original due date in the calendar on this page can get the extension. [6]

A Texas business that paid $10,000 or more in franchise tax in the previous state fiscal year must pay by electronic funds transfer, and its franchise tax extension works in two steps, a first extension and a second one, each needing a timely payment (Comptroller extension page, checked October 27, 2026). General example for 2027: a business that paid $12,000 of franchise tax in the previous state fiscal year pays by electronic funds transfer and must request both extensions for its 2027 report; the extended dates are on the calendar. [6][7]

The Comptroller can give a Texas taxpayer an extension of up to 45 days to file a tax report, but only on a written request that gives the reason and only if at least 90% of the estimated tax is paid by the original due date (Tax Code s. 111.057, in force for 2026). General example for 2027: for a quarterly sales tax report due April 20, 2027 with $10,000 of estimated tax, the business pays at least $9,000 by April 20, 2027 and can get until June 4, 2027 at most to file. [7]

A federal extension moves only the filing date, not the payment date. For 2026 individual returns, an extension gives until October 15, 2027 to file, but tax owed is still due April 15, 2027. [8][9]

Amended Texas franchise tax reports must be sent on paper with a cover letter giving the reasons and the word AMENDED written across the top of each page (Comptroller franchise tax FAQ, checked October 27, 2026). [10]

When the Comptroller disagrees and what penalties cost

Answer any Comptroller notice quickly, because the window to challenge it is short and penalties grow while tax stays unpaid.

A Texas business that disagrees with a Comptroller tax determination must file a petition for redetermination before 60 days have passed from the date the notice was issued; after that the determination is final (Tax Code s. 111.009, in force for 2026). General example for 2026: for a notice issued November 9, 2026, the 60 days run out on January 8, 2027. [7]

A final Texas tax determination is due 10 days after it becomes final; if it is still unpaid after those 10 days, a penalty of 10% of the determination, not counting penalties and interest, is added (Tax Code s. 111.0081, in force for 2026). General example for 2026: an $8,000 determination that becomes final December 1, 2026 and is still unpaid after December 11, 2026 picks up an $800 penalty. [7]

Texas generally cannot assess a state tax more than four years after the date it became due and payable (Tax Code s. 111.201, in force for 2026). General example for 2026: sales tax for October 2026, due November 20, 2026, can no longer be assessed after November 20, 2030. [7]

A Texas tax refund claim must be in writing, state each reason in detail, and be filed before the limitation period ends or before six months pass after a deficiency or jeopardy determination becomes final; only the person who paid the tax, or that person's attorney, assignee or successor, can file it (Tax Code s. 111.104, in force for 2026). General example for 2027: for a deficiency determination that becomes final on March 15, 2027, a refund claim on that determination must be filed within six months, by September 15, 2027. [7]

For most Texas taxes, each report filed late draws a $50 penalty, even if the report is later filed or no tax is due for the period (rule in force for 2026). [11]

Texas tax paid 1 to 30 days late carries a 5% penalty, and over 30 days late a 10% penalty; paying after the date on a Notice of Tax Due adds another 10%, for 20% in total (rules in force for 2026). General example for 2026: $2,000 of sales tax paid 45 days late draws a $200 penalty, plus the $50 late report penalty if the report was also late. [11]

When a Texas tax is not paid or a report is not filed on time because of fraud or an intent to evade the tax, an extra penalty of 50% of the tax due is added, unless another fraud penalty applies to that tax (Tax Code s. 111.061, in force for 2026). General example for 2026: $4,000 of tax evaded by fraud carries a $2,000 fraud penalty on top of the tax and the regular late penalties. [7]

Through a Voluntary Disclosure Agreement, a Texas business that owes an unpaid tax and has not been contacted by the Comptroller or notified of an audit can come forward; statutory penalties and interest are waived, except interest on tax collected but not remitted, and the review covers reports due in the four years before the business first contacts the Comptroller, with no limit for tax collected and not remitted (program page checked October 27, 2026). [12]

Any business that collects a Texas tax, or money it calls a tax, from a customer holds that money in trust for the state and owes the state the full amount collected plus penalties and interest (Tax Code s. 111.016, in force for 2026). General example for 2026: a shop that collects $5,000 of sales tax in November 2026 and keeps it owes the full $5,000, plus penalties and interest. [7]

Records, selling and closing a Texas business

Keep your tax records for the full period, and settle state tax before you sell or close the business.

A Texas taxpayer must keep its tax records open to inspection by the Comptroller and the attorney general for at least four years (Tax Code s. 111.0041, in force for 2026). General example for 2026: sales records for 2026 must be kept until at least the end of 2030. [7]

When a Texas business that owes state tax is sold or closes, the buyer must hold back enough of the price to pay that tax until the seller shows a Comptroller receipt or a certificate that no tax is due; a buyer that does not hold it back is liable up to the purchase price (Tax Code s. 111.020, in force for 2026). General example for 2026: a buyer paying $200,000 for a business that owes $15,000 of sales tax holds back $15,000 until the seller produces the certificate. [7]

A Texas entity that ends its business files a final franchise tax report covering the period from the day after its last annual report period through a date within 60 days of its termination date, and must meet all state tax filing requirements before the Secretary of State will process the termination (Comptroller pages, checked October 27, 2026). General example for 2026: an LLC that plans to terminate on December 15, 2026 ends its final report period on a date within 60 days of December 15, 2026. [13][10]

Texas tax dates at a glance

Copy the dates that apply to your business into your own planner a few weeks ahead of each one.

  • November 2, 2026: Texas unemployment tax wage report and payment for July to September 2026 [14]
  • November 16, 2026: Extended 2026 franchise tax report and Public Information or Ownership Information Report [6][7]
  • November 16, 2026: Quarterly sales tax prepayment for October to December 2026 [15][7]
  • November 20, 2026: Monthly sales tax report for October 2026 [16]
  • January 20, 2027: Sales tax report for October to December 2026 (quarterly filers) and for 2026 (yearly filers) [16]
  • February 1, 2027: Texas unemployment tax wage report and payment for October to December 2026 [14]
  • April 15, 2027: Business personal property rendition for property owned January 1, 2027, filed with the county appraisal district [17]
  • April 20, 2027: Sales tax report for January to March 2027 (quarterly filers) [16]
  • April 30, 2027: Texas unemployment tax wage report and payment for January to March 2027 [14]
  • May 17, 2027: 2027 franchise tax report, filed by corporations, LLCs, S corporations and limited partnerships [1]
  • July 20, 2027: Sales tax report for April to June 2027 (quarterly filers) [16]
  • August 2, 2027: Texas unemployment tax wage report and payment for April to June 2027 [14]
  • August 16, 2027: First extended due date for 2027 franchise tax reports of EFT payers [6][7]
  • October 20, 2027: Sales tax report for July to September 2027 (quarterly filers) [16]

Get connected with a firm

Tell us about the business and we look for a tax firm that works with owners like you, then introduce you if there is a fit.

Ask to be matched with a firm

Tax firms in Texas can tell us about the firm ahead of the directory.

I run a tax firm and want more clients

General information from the official sources listed below, checked October 27, 2026. Not tax or legal advice.

Sources

  1. https://comptroller.texas.gov/taxes/publications/98-806.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  2. https://comptroller.texas.gov/taxes/franchise/ Texas Comptroller of Public Accounts (checked October 27, 2026)
  3. https://comptroller.texas.gov/taxes/franchise/filing-requirements.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  4. https://tcss.legis.texas.gov/resources/BO/htm/BO.4.htm Texas Legislature (statutes) (checked October 27, 2026)
  5. https://comptroller.texas.gov/taxes/franchise/pir-oir-filing-req.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  6. https://comptroller.texas.gov/taxes/franchise/filing-extensions.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  7. https://tcss.legis.texas.gov/resources/TX/htm/TX.111.htm Texas Legislature (statutes) (checked October 27, 2026)
  8. https://www.irs.gov/taxtopics/tc304 Internal Revenue Service (checked October 27, 2026)
  9. https://www.irs.gov/filing/get-an-extension-to-file-your-tax-return Internal Revenue Service (checked October 27, 2026)
  10. https://comptroller.texas.gov/taxes/franchise/faq/ Texas Comptroller of Public Accounts (checked October 27, 2026)
  11. https://comptroller.texas.gov/taxes/file-pay/penalties.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  12. https://comptroller.texas.gov/taxes/publications/96-576.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  13. https://comptroller.texas.gov/taxes/franchise/reinstate-terminate.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  14. https://www.twc.texas.gov/programs/unemployment-tax/tax-report-payment-due-dates Texas Workforce Commission (checked October 27, 2026)
  15. https://tcss.legis.texas.gov/resources/TX/htm/TX.151.htm Texas Legislature (statutes) (checked October 27, 2026)
  16. https://comptroller.texas.gov/taxes/sales/index.php Texas Comptroller of Public Accounts (checked October 27, 2026)
  17. https://comptroller.texas.gov/taxes/property-tax/calendars/deadlines.php Texas Comptroller of Public Accounts (checked October 27, 2026)