Texas Taxes
Texas Franchise Tax: Who Has to File and When
Texas has no personal income tax, but most LLCs and corporations still file a franchise tax report every May. Here's who files, when it's due and what happens if you miss it.
By Northlane Financials · October 27, 2026 · 2 min read
Short answer: Most LLCs, corporations and other entities doing business in Texas are subject to the Texas franchise tax and must file a report with the Texas Comptroller by May 15 each year. Many small businesses owe no tax because their revenue is under the no-tax-due threshold, but they usually still have to file an information report.
Who is subject to Texas franchise tax?
The franchise tax applies to "taxable entities" formed in Texas or doing business in Texas. That generally includes:
- Limited liability companies (LLCs), including single-member LLCs
- Corporations (C-Corps and S-Corps)
- Limited partnerships and limited liability partnerships
- Professional associations and business trusts
Sole proprietors (a person doing business under their own name or a DBA) and general partnerships owned directly by individuals are generally not subject to the franchise tax.
When is the report due?
Annual franchise tax reports are generally due May 15. If May 15 falls on a weekend or holiday, the due date moves to the next business day. An extension is available if you request it on time.
What if my business made very little money?
Texas sets a no-tax-due revenue threshold, which the Comptroller updates every two years. If your total revenue is at or below that amount, you generally owe no franchise tax.
Starting with 2024 reports, businesses under the threshold no longer file the old No Tax Due Report. However, they still need to file a Public Information Report (PIR) for corporations and LLCs, or an Ownership Information Report (OIR) for other entities. Many owners miss this step because they assume "no tax" means "no filing."
How is the tax calculated for larger businesses?
For businesses above the threshold, the tax is based on "taxable margin." There are several ways to compute margin, and retailers and wholesalers generally pay a lower rate than other businesses. Smaller businesses may qualify for a simpler EZ computation. Picking the right method can change your tax, so it's worth running the numbers.
What happens if I don't file?
Missing the report can lead to late penalties and interest. If reports stay unfiled, the state can forfeit your entity's right to do business in Texas. That can cause problems with contracts, bank accounts and bids. Getting caught up is usually much easier than fixing a forfeited status.
A simple checklist
- Confirm whether your entity is subject to franchise tax.
- Gather your total revenue for the reporting year.
- If you're under the threshold, file your Public Information Report by May 15.
- If you're over it, choose the best margin method and file the full report.
- Put next year's May 15 deadline on your calendar.
How Northlane Financials helps
We prepare and file Texas franchise tax reports and Public Information Reports for Texas LLCs and corporations, and we track the deadline for you every year. See our Texas tax filing services or view the full Texas tax deadline calendar.
