Texas has no state income tax, but the franchise (margin) tax, sales tax, unemployment tax and business personal property tax still apply. Here's what your business owes and when.
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Employer's Quarterly Reports are due the last day of the month after each quarter. Details →
If annualized revenue is at or below $2.65 million (2026 and 2027 reports), no franchise tax is due and no franchise report is required. Details →
Texas taxes most business entities through the franchise tax instead of an income tax. Corporations, LLCs, LPs and LLPs are taxable entities. Sole proprietors and general partnerships owned only by individuals are not.
The tax is 0.75% of taxable margin, or 0.375% for retailers and wholesalers. Businesses with revenue of $20 million or less can use the EZ computation at 0.331%. Reports are due May 15 and cover the accounting year that ended in the prior calendar year.
If annualized revenue is at or below $2.65 million (2026 and 2027 reports), no franchise tax is due and no franchise report is required. You must still file a Public Information Report (corporations and LLCs) or Ownership Information Report by May 15. If you don't file it, the entity can lose its right to transact business.
The state rate is 6.25%. Cities, counties and special districts can add up to 2%, for a maximum of 8.25%.
Returns are due the 20th of the month after each period. The Comptroller assigns your frequency. Timely filers keep a small discount. A sales tax permit is required before making taxable sales.
Every state deadline in this guide on one page, ready to print or add to your calendar.
There is no state income tax withholding. Employers pay state unemployment tax to the Texas Workforce Commission.
Employer's Quarterly Reports are due the last day of the month after each quarter.
Equipment, furniture and inventory are taxed locally by county appraisal districts.
Renditions are due April 15 to your county appraisal district. Starting with the 2026 tax year, the first $125,000 of income-producing personal property is exempt (HB 9, approved by voters in November 2025), which removes many small businesses from the tax.
Federal 501(c)(3) status does not automatically exempt you from Texas taxes.
Nonprofits apply to the Comptroller (Form AP-204 for federally exempt organizations) for franchise and sales tax exemption. Without approval, a nonprofit corporation is treated as a taxable entity. See our Texas Nonprofit Guide.
Not if annualized revenue is at or below $2.65 million (2026–2027 reports), but it must still file a Public Information Report by May 15.
No. Texas ignores the federal S election, so S corporations are taxable entities for franchise tax like any other corporation.
Yes. A timely extension request moves the report to November 15, but tax owed must still be paid by May 15.
Download the Texas Business Tax Calendar (PDF).
Greywood CPA prepares state returns, PTET elections and payroll filings for businesses and nonprofits in Texas, with fixed, transparent pricing.
See our Texas servicesThis guide is general information as of October 2026 and is not tax advice. Rates, thresholds and deadlines change, and local taxes vary. Federal deadlines are not shown. Confirm your obligations with a CPA before filing.