taxes

Insurance Premium Tax (Surplus Lines/Purchasing Groups)

Who is responsible for this tax?

A Texas-licensed surplus lines agent who places a policy with a surplus lines insurer must report and pay this tax when Texas is the home state of the insured.

Rates

4.85 percent of taxable premiums

Due Date

  • Yearly: March 1 for the previous calendar year (for example, March 1, 2015, for premiums received in 2014).
  • Prepayments are due by the 15th of the month in which the agent accrues $70,000 or more.

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