taxes

Insurance Premium Tax (Licensed Insurers)

Who is responsible for this tax?

All insurers and health maintenance organizations licensed by the Texas Department of Insurance must pay this tax.

Learn more about licensed captive insurers and the premium tax.

Rates

  • Property and casualty insurers: 1.6 percent
  • Life, accident and health insurers, including health maintenance organizations (HMO): 1.75 percent. A half tax rate of .875 percent is due on the first $450,000 of life insurance or HMO premium.
  • Title insurers: 1.35 percent
  • Reciprocal or interinsurance exchanges: 1.7 percent

Due Date

  • Yearly: March 1 following the end of the calendar year (for example, March 1, 2015, for premiums received in 2014).
  • Semi-annual prepayments: March 1 and August 1 of each year.

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