Texas Franchise Tax Report: Due Date, Threshold & How to File (2026)

The Texas franchise tax report is the main yearly filing for every Texas LLC, and it is due on May 15. Many small LLCs owe no tax because their revenue is below the state's threshold, but they still have to file a report. This guide explains who files, what the 2026 threshold is, how the tax works, how to file, and what happens if you miss the deadline. If you have not set up your company yet, start with our guide to LLC formation in Texas.

What Is the Texas Franchise Tax Report?

Texas has no personal income tax, but it charges a franchise tax (often called the margin tax) on most LLCs, corporations and partnerships doing business in the state. It is based on your company's revenue, not your profit alone. Each year you file a report with the Texas Comptroller of Public Accounts, and Texas LLCs do not file a separate annual report with the Secretary of State. This is the filing that keeps your LLC in good standing.

Who Must File?

All taxable entities formed in Texas or doing business there, including LLCs, must file. This covers:

• Single-member LLCs and multi-member LLCs
• LLCs owned by non-US residents
• LLCs with no income or activity during the year
• LLCs formed in another state but registered to do business in Texas

New entities file their first report in the year after they were formed. For example, an LLC formed in 2025 files its first report by May 15, 2026.

Texas Franchise Tax Report Due Date

The annual report is due on May 15 of each year, or the next business day if May 15 falls on a weekend or holiday. It covers your previous accounting year, so the report due in May 2026 reports revenue from 2025 for a calendar-year LLC.

The No-Tax-Due Threshold for 2026

If your annualized total revenue is at or below $2.65 million, your LLC owes no franchise tax for the 2026 and 2027 report years. Texas raised this threshold from $2.47 million. Since the 2024 report year, businesses under the threshold no longer file the old "No Tax Due Report," which was discontinued.

Being under the threshold does not mean you can skip everything. You must still file a Public Information Report, explained below. If your revenue is above the threshold, you file a franchise tax report and pay any tax due.

The Public Information Report (PIR)

Almost every LLC must file the Public Information Report, which is Form 05-102 for LLCs, corporations and similar entities. It lists basic information about your company, such as its principal office and the names and addresses of its managers, members or officers. Other entity types, such as partnerships, file an Ownership Information Report instead.

You file the PIR even if you owe $0 in tax and even if your revenue is below the threshold. It is due on the same May 15 date, and it must be signed by an authorized person.

Tax Rates and How the Tax Is Calculated

If your revenue is above the threshold, the tax is calculated like this:

• Standard rate: 0.75% of taxable margin for most businesses
• Retail and wholesale rate: 0.375% of taxable margin for qualifying retailers and wholesalers
• EZ computation: 0.331% of total revenue, available to businesses with $20 million or less in total revenue

Taxable margin is generally the lowest of four calculations: 70% of total revenue, total revenue minus cost of goods sold, total revenue minus compensation, or total revenue minus $1 million. Only the portion of your revenue sourced to Texas is taxed. The rules are detailed, so work with a tax professional if your revenue is above the threshold.

How to File Your Texas Franchise Tax Report

1. Collect your information. You need your Texas taxpayer number, your total revenue figure, and details about your managers, members or officers.
2. Log in to the Comptroller's online filing system, called Webfile. You use your taxpayer number and Webfile number to access your account.
3. Choose the right filing. If your revenue is at or below the threshold, choose the Public Information Report option. If it is above, complete the franchise tax report and the PIR.
4. Review and update your information. Confirm your managers, members and addresses.
5. Submit and pay any tax due. Pay electronically if you owe tax, and save your confirmation.

You can also file on paper using the Comptroller's forms, but online filing is faster and gives you an instant confirmation. Aim to file at least a week before May 15, so you have time to fix any access problems.

Extensions

If you cannot file by May 15, you can request an extension using Form 05-164, which can move your filing deadline to November 15. An extension gives you more time to file, not more time to pay. If you owe tax, you generally still need to pay it by May 15 to avoid penalties and interest.

What Happens If You Miss the Deadline?

Late reports can lead to:

• A $50 late-filing penalty for each report
• A penalty of 5% of the tax due, which rises to 10% if you are more than 30 days late
• Interest on unpaid tax
• Loss of your right to do business in Texas if the report stays unfiled, which is called forfeiture

Missed the May 15, 2026 Deadline?

File as soon as you can. The longer a report stays unfiled, the higher the risk of penalties and forfeiture. If your account has already been forfeited, you generally have to file the missing reports and pay what is owed to restore your LLC. Speak with a tax professional if you are unsure of your account status.

Extra Points for Non-US Owners

• Keep your registered agent address current. The Comptroller sends account notices to the mailing address on file, so make sure mail reaches you. Our guide to the LLC registered agent explains what these services do.
• Do not skip the report because you have no income. A $0 filing still counts.
• Remember federal filings. A foreign-owned single-member LLC may need to file Form 5472 with a pro forma Form 1120 each year. See our guide to Form 5472 and 1120 for foreign-owned LLCs.
• Check BOI rules. Federal beneficial ownership reporting has changed several times, so read our latest article on BOI filing for foreign-owned US companies.
• Indian founders: our US LLC tax guide for Indian founders covers the India side.

If you are still choosing where to form your company, see how Texas compares in our guide to LLC applications in Texas.

Common Mistakes to Avoid

• Assuming no tax means no filing. You still file the Public Information Report.
• Confusing the extension with a payment deadline. Tax is still due by May 15.
• Using total profit instead of revenue. The threshold is based on annualized total revenue.
• Forgetting the first report. New LLCs file in the year after formation.
• Letting mail go unnoticed. Comptroller notices go to your address on file.
• Ignoring federal filings. Form 5472 is separate from state compliance.

Get Help Staying Compliant

FormLLC helps founders keep their US companies in good standing, from state filings and registered agent services to federal reporting. If you would like us to track your deadlines and help with your Texas compliance, book a free consultation with our team today.

*FormLLC is a business formation and compliance services provider, not a law firm, and this article is general information rather than legal or tax advice.*