taxes

Insurance Premium Tax (Unauthorized Insurance)

Who is responsible for this tax?

An insurance company that transacts insurance business in Texas without being licensed by the Texas Department of Insurance must pay this tax. If not paid by the due date, the tax is a liability of the insurer, the agent and 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).

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