Crude Oil Production Tax
A tax is imposed on the production of crude oil in Texas at its market value.
Notice - Effective June 26, 2011: Crude Oil and Natural Gas
Data-change and Error Notices Discontinued
In an effort to reduce costs and meet taxpayer requests for fewer notices, the Comptroller's office will stop mailing data-change and reporting error notices to crude oil and natural gas taxpayers on June 26, 2011.
Information regarding data changes and reporting errors will remain accessible on the Comptroller's CONG Web Inquiry system. Users must login to access secured information. The Web inquiry system can also be accessed from both the Crude Oil and Natural Gas pages on this website.
Notice: Enhanced Web tools available
As part of the Comptroller's ongoing effort to simplify tax reporting, several new taxpayer tools have been added to the crude oil and natural gas Web inquiry system to help taxpayers reconcile reporting periods.
Crude Oil and Natural Gas Reports and Procedures
The Comptroller's office implemented changes to streamline the processing or your transfer and refund requests. For more information, visit our Frequently Asked Questions for reports, transfers and refunds due on or after Jan. 1, 2008.
Rate Details and Other Information
- Oil production tax: 4.6% (.046) of market value of oil.
- Regulatory Tax: 3/16 of a cent ($.001875) per barrel.
- Regulatory Fee: 5/16 of a cent ($.003125) per barrel for report periods prior to September 2001. For report periods September 2001 and later, 5/8 of a cent ($0.00625) per barrel
- 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.