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

The No Tax Due Report is not available for 2025 reports. Effective for reports due on or after Jan.1, 2024, an entity that has annualized total revenue less than or equal to the no tax due threshold of $2.47 million is not required to file a No Tax Due Report.

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 ...

March 7, 2025 - The No Tax Due Threshold determines which businesses are exempt from franchise tax payments but still need to file a report. For the 2025 tax year, businesses with total annual revenue below $1.23 million are not required to pay franchise tax.

June 23, 2025 - As of 2008, the Texas franchise tax is calculated from an entity’s margin. Margin is computed in one of the following ways (unless filing with EZ computation): ... (Revenue is calculated by subtracting statutory exclusions from the revenue reported on your company’s federal income tax return.) That number is then taxed accordingly (for 2024 and 2025...

If a combined group’s annualized ... group that is organized in Texas or has nexus in Texas must file a PIR or OIR. Annualized Revenue Threshold: $2,470,000 for reports due in 2024-2025......

See Tax Rates, Threshold, and Deduction Limits for information on current and historic tax rate, threshold, and deduction limit information. Franchise tax reports are due on May 15 each year.

1 week 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...

November 12, 2025 - Businesses close to the threshold or evaluating EZ eligibility should reassess their filing position ahead of the 2026 report year. If you have questions about the Texas Margin Tax, please reach out to a member of the Withum SALT Team. ... Pursuant to TX SB 263, signed by Gov. Abbott on June 20, 2025, television and radio broadcasters subject to the Texas Franchise (Margin) Tax will be able to claim a cost of goods sold (COGS) reduction.

October 17, 2025 - The Texas Franchise Tax is calculated on a company’s margin for all entities with revenues above $2,470,000. The margin’s threshold is subject to change each year.

April 17, 2025 - These changes may impact your filing obligations and tax calculations. Franchise Tax Rates and Thresholds For 2025, the Texas franchise tax rates and thresholds are as follows: No Tax Due Threshold: $2.47 million

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.

November 1, 2025 - If business owners aren't prepared, they could struggle to meet their tax obligations. However, businesses that fall below the $1.23 million revenue threshold don't need to worry about paying the franchise tax.

When the accounting period upon ... for the no tax due threshold and qualification for the E-Z Computation. To annualize total revenue, divide total revenue by the number of days in the period upon which the report is based, then multiply the result by 365....

Is this entity a New Veteran-Owned Business as defined in Texas Tax Code Sec. 171.0005? ... To be considered a new veteran-owned business, an entity must meet specific requirements, and submit proper documentation which is verified by the Comptroller’s office. Enter the amount of total revenue using the instructions for Items 1-10 of Form 05-158-A. Note: Passive entities, REITs and new veteran-owned businesses may enter zero. Find franchise tax forms if you cannot submit electronically.

In July 2023, the legislature passed Senate Bill 3, which increased the No Tax Due Threshold and eliminated reporting requirements for certain entities. In response, the Comptroller's office has changed the way some entities have to report for franchise tax purposes.

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.

June 7, 2024 - Entities formed or registered before January 1, 2024, must file their initial reports by January 1, 2025, but entities formed on or after January 1, 2024, have 30-90 days from formation.

Form 05-226, Texas Notice of Intent ... problem with your account. There are new filing requirements for 2024. The no tax due threshold is increased to $2.47 million and certain filing requirements are eliminated....

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