taxes

Insurance Premium Tax (Independently Procured)

Extension Information for 2019 Independently Procured Insurance Tax

The annual independently procured insurance tax report for 2019 is due May 15, 2020. To help ease the burden for taxpayers struggling during this time, the Texas Comptroller of Public Accounts will grant, upon request, a 60-day extension to July 15 to file and pay this tax. Taxpayers who have been granted the 60-day extension and need more time to file and pay this tax can apply for an additional 30-day extension on or before July 15.

Taxpayers requesting an extension must email on or before May 15, 2020, the following information to insurance.tax@cpa.texas.gov.

  • Taxpayer Name
  • Taxpayer Number
  • Name and phone of person making request
  • Statement requesting extension for Independently Procured Insurance Premium Tax for the 2019 filing period

Any filings and payments made after the last day of the extension will be subject to penalties.

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
  • 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.

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, Mastercard® and Visa)
  • 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, Mastercard® and Visa)
  • TEXNET
$50,000 - $499,999

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, Mastercard® and Visa)
  • TEXNET
$500,000 or more

Webfile is the only acceptable reporting method.

TEXNET is the only acceptable payment method.

Additional Resources