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.

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 ...

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 ...

Members include taxpayers from a broad spectrum of Texas businesses joined together to promote and support fair and rational state and local tax policy. Association staff members are experts in tax, fiscal, and education policy.

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:

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.

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

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.

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 ...

November 12, 2025 - The no-tax-due threshold remains ... franchise tax rates remain unchanged at 0.75% for most taxable entities and 0.375% for taxpayers primarily engaged in retailing or wholesaling....

SB3 also repealed the requirement that a new veteran-owned business file a No Tax Due Report during its initial five-year exemption period. If a combined group’s annualized total revenue is at or below the no tax due revenue threshold, the combined group is no longer required to file a franchise tax report, an Affiliate Schedule and a Common Owner Information Report for that report year.

For the 2024 report year and later, a taxable entity whose annualized total revenue is less than or equal to the No Tax Due Threshold is not required to file a No Tax Due Report.

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.

If the tax due is less than $1,000, but annualized total revenue is greater than the no tax due threshold, a franchise tax report supporting that no tax is due (Form 05-158, Texas Franchise Tax Report, or Form 05-169, Texas Franchise Tax EZ Computation Report) must be filed.

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 ...

72nd Legislature (1991) $2.50 per $1,000 of taxable capital and amount, if any, by which a tax of 4.5% on ... 79th Legislature, 3rd Called Session (2006) One percent of a firm’s Texas-apportioned “margin,” defined as

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 ...

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 ...

The calendar year 2024 will bring multiple changes to the Texas franchise tax. Taxpayers responsible for entities operating in Texas should be aware of these rules as they plan for their filing and payment obligations in the year ahead.