Franchise tax rates, thresholds and deduction limits vary by report year.

March 24, 2025 - The Texas no tax due threshold changes every two years (on even years). It was $1.23 million for 2022–2024, then took a big leap. For franchise tax reports originally due on or after January 1, 2024, the no tax due threshold is $2.47 million.

The Employee Information System (EIS) application is no longer available effective May 31, 2025. Please contact your agency Human Resource or Payroll representative for any questions or inquiries · To expedite the processing of your tax returns, please file electronically or use our preprinted ...

2 weeks ago - Ordering Franchise Tax filing obligations from least to most complex: An entity with annualized total revenue less than or equal to the no tax due threshold ($2,470,000 in 2024 and 2025) is not required to file a "No Tax Due Report" (Texas did ...

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3 weeks ago - This structure is why the computation method and apportionment matter so much in Texas. 2025 update: The No Tax Due threshold is $2,470,000 for reports originally due in 2024 and 2025 (up from $1.23M in 2022–2023).

March 7, 2025 - For the 2025 tax year, businesses with total annual revenue below $1.23 million are not required to pay franchise tax. However, they must still file a No Tax Due Report with the Texas Comptroller of Public Accounts to confirm their exemption.

October 29, 2025 - For reports due after 1/1/24, if your annualized total revenue as listed on your federal tax return is less than or equal to $2.47M, you do NOT have to file the No Tax Due Information Report or pay Texas franchise tax.

June 23, 2025 - Even if a business does not operate within the state, it must still pay the tax if it has been formed in Texas or is registered there. Companies that partner with out-of-state businesses may also be subject to the same rate. The Texas Comptroller’s site lays out a detailed list of entities subject to the franchise tax:

September 10, 2025 - As Texas has no net corporate or personal income tax, the Texas Franchise Tax is our state’s primary tax on businesses. Fortunately, the No Tax Due Threshold, currently set at $2,470,000, prevents most small companies (like LLCs) from having to pay any franchise tax.

We'll also cover how Harbor Compliance ... entities in Texas for doing business in the state. It's levied annually on businesses that make over $2.47 million in annual revenue....

December 12, 2023 - This is done by subtracting the ... compensation, or total revenue minus cost. The threshold for periods commencing on or after January 1, 2022, and before January 1, 2024, is $1,230,000....

May 7, 2024 - SB3 increased the no tax due revenue threshold from $1.23 million to $2.47 million and removed the No Tax Due filing requirement for taxable entities whose annualized total revenue is at or below the revenue threshold.

January 8, 2024 - taxnews.ey.comPrintShare: · Texas franchise tax exemption increases to $2.47 million in 2024 while no-tax-due reports are eliminated

February 12, 2025 - The no-tax-due revenue threshold, also known as the “margin” tax exemption, has been raised to $2.47 million. As a result, taxable entities with annualized total revenue less than or equal to this amount will owe no franchise tax.

October 17, 2025 - The Texas Franchise Tax is levied annually by the Texas Comptroller on taxable entities doing business in the state that make over $2.47 million in annual revenue. The tax is based upon the entity’s margin and can be calculated in a number ...

July 25, 2025 - Businesses with annual revenue exceeding $2,470,000 must file a franchise tax report. Those below this threshold are exempt from filing the tax report but may still need to submit a Public Information Report or Ownership Information Report. Texas allows businesses to calculate their taxable ...

September 9, 2025 - There are two forms you can use to find out your tax total: the E-Z Computation or the Long Form. Each form calculates your tax differently. If your total receipts for the year are over the current threshold ($2,470,000) but under $20 million, you ...

September 8, 2025 - The tax rate for your Texas Franchise Tax Report will be determined by your business’s total revenue and/or the type of business you own. Good news? Most businesses won’t have to pay anything! The bad news is you’ll still be required to file a tax return.

August 29, 2024 - EZ Computation* – Total revenue times apportionment factor, then apportioned total revenue times tax rate of 0.331%. Only businesses with an annualized total revenue of $20M or less qualify for EZ Computation · Service industries, especially ...