News and Announcements
New Filing Requirements for 2024
The no tax threshold is increased to $2.47 million and certain filing requirements are eliminated.
Higher Than Normal Call Volume
We are experiencing higher than normal call volume. While we are available Monday through Friday, 8 a.m.-5 p.m. Central Time, shorter wait times normally occur from 8-10 a.m. and 4-5 p.m. Please have your 11-digit taxpayer number ready when you
call. For additional information, see our Call Tips and Peak Schedule webpage.
The Texas franchise tax is a privilege tax imposed on each
taxable entity formed or organized in Texas or doing business in Texas. For general information, see the Franchise Tax Overview.
Update a Franchise Tax Account
File and Pay Franchise Tax
Tax Rates, Thresholds and Deduction Limits
Franchise tax rates, thresholds and deduction limits vary by report year. Use the rate that corresponds to the year for which you are filing.
Tax Rates, Thresholds and Deduction Limits for Prior Years
Annual Franchise Tax Reports
The annual franchise tax report is due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day.
Final Franchise Tax Reports
Before getting a Certificate of Account Status to terminate, convert, merge or withdraw registration with the
Texas Secretary of State:
A Texas entity, terminating, converting or merging, must file its final tax report and pay any amount due in the year it plans to terminate, convert or merge.
An out-of-state entity, ending its nexus in Texas, must file its final report and pay any amount due within 60 days of ceasing to have nexus.
Penalties and Interest
A $50 penalty is assessed on each report filed after the due date.
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.
Past due taxes are charged interest beginning 61 days after the due date.
To calculate interest on past due taxes, visit
Interest Owed and Earned.