taxes

Insurance Premium Tax (Independently Procured)

Who is responsible for this tax?

An insured whose home state is Texas must pay the independently procured insurance premium tax when procuring a policy directly from a nonadmitted insurer. Tax is due in Texas based on the entire premium charged for the policy, even if there is premium allocable to risk located in other states. If there is no risk in Texas, however, then the state with the highest premium allocation becomes the home state and no tax is due in Texas.

If an agent or broker is involved in the placement of an insurance policy, then the policy is surplus lines insurance, and it is subject to regulation and taxation by the home state of the insured.

Rates

4.85 percent of taxable premiums

Due Date

Yearly: May 15 for the previous calendar year (for example, May 15, 2015, for policies written in 2014).

Penalties and Interest

Penalties
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
$10,000 - $49,999

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
$50,000 - $99,999

WebFile is the only acceptable reporting method.

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
$100,000 or more

WebFile is the only acceptable reporting method.

TEXNET is the only acceptable payment method.

Additional Resources