Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Texas Franchise Tax

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The Texas franchise tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas.

What’s New for 2016?

Rates for 2016

The following rates apply to reports originally due on or after Jan. 1, 2016:

  • 0.75 percent rate for most entities; or
  • 0.375 percent rate for entities primarily engaged in retail or wholesale trade
  • EZ Computation Report–
    • 0.331 percent rate
    • Revenue threshold is now $20 million.

Electronic Filing of No Tax Due Reports Required

No Tax Due Reports must be filed electronically beginning Jan. 1, 2016.

$1 Million No Tax Due Threshold

The no tax due threshold is now $1,110,000 for reports originally due on or after Jan. 1, 2016, and before Jan. 1, 2018, as required by Tax Code Section 171.006(b).

Compensation Deduction Limit Adjusted

The limit on wages and compensation deduction is now $360,000 per person for reports due on or after Jan. 1, 2016, and before Jan. 1, 2018, as required by Tax Code Section 171.006(b).

Reporting Requirements for Limited Partnerships and Professional Associations

Limited partnerships and professional associations are now required to file Public Information Reports with the Comptroller’s office instead of Ownership Information Reports with the Comptroller’s office. This change applies to reports originally due on or after Jan. 1, 2016.


2016 Reporting: How Will You File?

See “Which Forms Should I File” if you’re not sure whether you should file a No Tax Due, E-Z Computation, or Long Form Report, or have other questions about what to file.

Filing and Payment Methods Table

Filing and Payment Methods

Submission Option Approved Electronic Submission Software Providers Franchise Tax Webfile Approved Forms Software Providers Texas Franchise Tax PDF Forms
Cost Provider fee Free Provider fee Free
Filing Method Electronic Electronic Print & Mail Print & Mail
Payment Options* Electronic transfers Electronic transfers Mail with Report Mail with Report
Get Started! Approved Providers Franchise Tax WebFile Approved Providers Tax Forms

*Payment Options: Depending on amounts due, some payments must be made electronically. See Electronic Reporting and Payment Requirements.


Required Plug-ins

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.

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