Crude Oil Production Tax
A tax is imposed on the production of crude oil in Texas at its market value.
Tax Credits for Low-Producing Oil Leases
Instructions and examples for reporting the low-producing oil leases are available online.
April 27, 2015 – Announcement Regarding Crude Oil and Natural Gas Non-Critical Reported Error Messages
Effective April 27, 2015, the Comptroller’s office will eliminate all reported error messages considered as non-critical. This means error messages labeled as non-critical will no longer be displayed on the Crude Oil and Natural Gas Web Inquiry system. By taking this step, it will be an easier process for taxpayers to review and correct all critical errors.
Crude Oil and Natural Gas Credit Processing Announcement
The Comptroller's office has launched a program to ensure crude oil and natural gas taxpayers have access to qualified credits as quickly as possible. Learn more.
Rate Details and Other Information
- Oil production tax: 4.6% (.046) of market value of oil.
- For report periods September 2015 and later, the taxable barrels are subject to the Oil Field Clean-Up Fee of $0.00625 per barrel. This amount consists of 5/8 of a cent ($0.00625) per barrel.
- For report periods September 2001 through August 2015, the taxable barrels are subject to the Regulatory Tax and Oil Field Clean-Up Fee amounts of .008125. This amount consists of 3/16 of a cent ($.001875) per barrel + 5/8 of a cent ($0.00625) per barrel = .008125
- Reduced Oil Production Tax Rates for Certified Exemptions:
- Enhanced Oil Recovery Exemption (EOR) 2.3% (.023) of market value of oil;
- Two Year Inactive Well Exemptions 0.0% (.000) of market value of oil.
Monthly: 25th day of the month following the production month.