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Franchise Tax

Texas franchise tax and annual information reports

Texas keeps the annual franchise-tax workflow alive even when no tax is due, because many entities still must file a Public Information Report or Ownership Information Report by the same deadline.

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What Texas requires

Texas franchise-tax reports are due May 15 each year. The current Comptroller guidance says the no-tax-due threshold for report years 2026 and 2027 is $2,650,000.

Also check

This guide only covers the state record. Use Texas local permits and assumed name filings next to check the county, city, and municipal layer that can still create risk.

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What changed for no-tax-due entities

  • For report years 2024 and later, entities at or below the no-tax-due threshold generally do not file a No Tax Due Report.
  • Those entities still file a Public Information Report or an Ownership Information Report, depending on entity type.
  • Texas says corporations, LLCs, limited partnerships, professional associations, and financial institutions generally file a Public Information Report.
  • Other taxable entities generally file an Ownership Information Report.

Penalties for missing the deadline

  • Texas lists a $50 penalty for each report filed after the due date.
  • If the tax is paid 1 to 30 days late, the penalty is 5 percent of the unpaid tax.
  • If the tax is more than 30 days late, the penalty rises to 10 percent, and interest begins after 61 days.
What you may need to file

Filing variants broken out in plain terms

Some guides cover more than one obligation or entity class. These cards separate the filing variants so it is easier to see what applies.

Franchise Tax

Texas franchise tax report

  • Entities: Taxable entities doing business in Texas
  • Frequency: annual
  • Due rule: Due May 15 each year.
  • Fee: Tax due depends on threshold and calculation method; the no-tax-due threshold is $2,650,000 for report years 2026 and 2027.
  • Method: File with the Texas Comptroller.

This is the core tax obligation even when related information reports branch by entity type.

Key requirements

  • No-tax-due threshold: For report years 2026 and 2027, the current no-tax-due threshold is $2,650,000.
  • No Tax Due change: For report years 2024 and later, entities at or below the threshold generally do not file a No Tax Due Report.
Information Report

Public Information Report

  • Entities: Corporations, LLCs, Limited partnerships, Professional associations, Financial institutions
  • Frequency: annual
  • Due rule: Due with the annual franchise-tax filing cycle on May 15.
  • Fee: No separate fee signal on the Comptroller overview; handled as part of the annual reporting cycle.
  • Method: File with the Texas Comptroller alongside the annual franchise-tax workflow.

This is the ownership and public-record branch that survives even when no franchise tax is due.

Key requirements

  • Entity scope: Used by corporations, LLCs, limited partnerships, professional associations, and financial institutions.
  • Purpose: Keeps annual public or ownership information current even when no franchise tax is due.
Information Report

Ownership Information Report

  • Entities: Other taxable entities that do not file a Public Information Report
  • Frequency: annual
  • Due rule: Due with the annual franchise-tax filing cycle on May 15.
  • Fee: No separate fee signal on the Comptroller overview; handled as part of the annual reporting cycle.
  • Method: File with the Texas Comptroller alongside the annual franchise-tax workflow.

This is the alternate information-report path for taxable entities outside the PIR classes.

Key requirements

  • Entity scope: Used by taxable entities that do not fall into the Public Information Report classes.
  • Purpose: Maintains the annual ownership-information branch of the Texas reporting cycle.