Crude Oil Production Tax
Sign up to receive e-mail updates when this page changesA 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.
Notice: New Reporting Requirements
Please read about these important changes in the December 2009 notice, New Reporting Requirements for Crude Oil and Natural Gas (PDF, 395KB).
Important Tax News for You
The Comptroller's office has implemented changes to streamline the processing of your transfer and refund requests. (posted 08/06/08)
Crude Oil and Natural Gas Reports and Procedures
Major Changes for Crude Oil and Natural Gas Taxes (PDF, 1711KB)
Visit our online tutorial for completing the new crude oil and natural gas tax reports with due dates after January 1, 2008.
Visit our frequently asked questions pertaining to the new crude oil and natural gas tax reports and reporting procedures as of January 1, 2008.
Additional Resources
Information for Direct Deposit of Tax Refunds (PDF, 5615KB)
Crude Oil & Natural Gas Electronic Reporting Quick Reference Guide (PDF, 2379KB)
Incremental Production Credit History
- Incremental Production Credit Suspension Letter - 06/02/2003 (PDF, 18KB)
- Reinstatement of Tax Credit for Incremental Production Techniques - 12/31/2001 (PDF, 17KB)
Revenue and Budget Information
Texas Revenue History by Source
Rate Details and Other Information
Rates
Oil production tax: 4.6% (.046) of market value of oil.
Reduced Oil Production Tax Rates for Certified Exemptions:
Enhanced Oil Recovery Exemption (EOR) 2.3% (.023) of market value of oil;
Incremental Production Exemption 2.3% (.023) of market value of oil; Co-Production Project Exemption 2.3% (.023) of market value of oil;
Three Year and Two Year Inactive Well Exemptions 0.0% (.000) 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
Due Date
Monthly: 25th day of the month following the production month.
Electronic Reporting
Yes - see left column.