You may have a Texas Comptroller account open, a franchise-tax reminder in hand, or Form 05-102 on screen and still be unsure what is required. The common mistake is assuming that no amount due means nothing must be filed.
For the 2026 reporting year, the practical risk is missing an information filing even when the business owes nothing. Your next decision is whether to submit only an information form or complete a calculation too.
What Is the Texas Franchise Tax?
Texas has no individual state income tax. The tax relevant here is the franchise tax, a state levy imposed on many taxable entities formed in Texas or conducting business there.
It should not be casually renamed a corporate income tax.
The Texas Comptroller of Public Accounts, the state agency that administers the franchise tax, determines filing obligations by reporting year. Corporations, LLCs, partnerships, banks, and other legal structures may fall within the system, subject to statutory exclusions and special rules.
For the 2026 reporting year, annualized total revenue determines whether a business is above or below the no-tax-due threshold. That figure does not mean cash collected alone.
Its calculation begins with specified federal-return amounts and then applies statutory adjustments.
Treat the requirement as an entity-level compliance obligation, then verify the business’s status with the Texas Comptroller.
That definition leads to the forms the business may need to submit.
Which Franchise Tax Report Is Required?
The required tax report depends primarily on annualized total revenue, eligibility, deductions, and credits. For report years beginning in 2024, the former No Tax Due Report is discontinued.
For the 2026 reporting year, an entity with annualized total revenue at or below $2.65 million generally does not file a franchise tax calculation. It must usually submit a Public Information Report or Ownership Information Report instead.
Taxable entities above that threshold generally file either the E-Z Computation Report or Long Form.
The E-Z option is available when annualized total revenue is $20 million or less, including for a combined group. The Long Form is required when the filer is ineligible for E-Z treatment or elects deductions, credits, or specified carryovers.
Confirm the selection against the Comptroller’s 2026 forms and instructions.
Select the filing from the business’s revenue and elections, not from its legal name alone.
The next distinction is how franchise status affects that selection.
Does Every Franchise or Business Entity File?
Not every business files the same franchise tax forms, but most taxable entities must satisfy an annual reporting requirement. An LLC is not exempt from compliance merely because it has one member or reports income on its owner’s federal return.
Passive entities, qualifying new veteran-owned businesses, real estate investment trusts, combined groups, and businesses with zero Texas gross receipts can face different requirements. For example, a qualifying passive entity must file an E-Z Computation Report or Long Form but generally does not submit a PIR or OIR.
A combined group measures total revenue at the group level for the threshold. Its reporting entity submits the combined filing, while member-level information obligations may still apply.
Identify the business category before choosing any franchise tax form, and confirm special treatment with the Comptroller.
After classification, collect the information needed for filing.
What Information Must Be Reported?
The filing requires identifying, accounting, financial, and ownership information appropriate to the selected form. The exact fields depend on whether the business files a calculation, a Public Information Report, or an Ownership Information Report.
A Public Information Report, or PIR, is generally used by corporations, LLCs, limited partnerships, professional associations, and financial institutions. Other legally formed entities generally use an Ownership Information Report, or OIR.
A combined group may also need a Common Owner Information Report.
Before preparing the forms, gather the Texas taxpayer number, reporting period, federal accounting data, total revenue inputs, Texas gross receipts, officer or member details, and registered-agent information. Paper PDFs are designed for Adobe Reader, although Webfile may be available for the required submission.
Match every field to current accounting or entity records before transmitting the information form.
Those records also determine whether franchise tax is payable.
How Is Franchise Tax Due Calculated?
Franchise tax due is calculated only after the business determines total revenue, applicable exclusions, taxable margin, apportionment, and the correct rate. Annualized total revenue tests the threshold; it is not itself the final tax base.
For the 2026 reporting year, the no-tax-due threshold is $2.65 million. The published rates are 0.375% for qualifying retail or wholesale businesses and 0.75% for other businesses.
The E-Z Computation rate is 0.331%. Rates and thresholds are reporting-year specific, as shown in the Comptroller’s franchise tax table.
Example: A business with $2.4 million in annualized total revenue is below the threshold and generally owes no franchise tax, but it usually must file its PIR or OIR.
A business with $3 million is above the threshold and must calculate its liability; it may still have no amount payable if the completed form shows less than $1,000 due. A business with annualized total revenue above $20 million cannot use the E-Z method.
Use the official instructions for the full computation rather than applying a rate directly to gross receipts.
Once the calculation is complete, the Texas filing rules control the next step.
Texas Forms and Filing Authorities
Texas franchise tax forms are issued by the Texas Comptroller, not by the Secretary of State, commonly called the SOS. The Comptroller handles franchise tax filings and payments.
SOS records may become relevant when an entity terminates, converts, merges, or withdraws.
Current forms include Form 05-169 for E-Z Computation, Forms 05-158-A and 05-158-B for the Long Form, Form 05-102 for the PIR, and Form 05-167 for the OIR. A final report may be required before obtaining the account-status documentation used for certain SOS filings.
Download forms for the 2026 reporting year because thresholds, instructions, and schedules can change.
Choosing the right Texas form is only useful if it arrives when due.
When Is the 2026 Report Due?
The 2026 annual franchise tax filing is due May 15, 2026. If a standard due date falls on a Saturday, Sunday, or federal legal holiday, the deadline moves to the next business day.
A valid extension request must be received or postmarked by May 15, 2026. An extension lengthens the filing period under the applicable rules, but it does not automatically defer every required payment.
A report filed late is subject to a $50 penalty even when no tax is due. Late payments can also trigger percentage penalties and interest, so a business should resolve both its filing and payment obligations.
Calendar May 15, 2026, and verify electronic-payment timing through the Comptroller’s due-date guidance.
The final step is to file through the permitted channel.
How to File the Texas Franchise Tax Report
To file, confirm the reporting year, select the correct financial and information forms, complete all required fields, submit them through an accepted method, and retain the confirmation.
Webfile supports many submissions, payments, extension requests, final reports, and account transactions. If paper filing is permitted, use the current PDF and follow its mailing instructions.
A paper payment generally requires Form 05-170 when tax was not remitted electronically.
Before submission, reconcile total revenue to the relevant federal-return lines, check the accounting period, confirm officer or owner information, and review the calculation. Keep the filed report, payment record, and Webfile confirmation with the entity’s compliance records.
File the required financial and information forms by May 15, 2026, then verify that the Comptroller account shows the obligation as satisfied.