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Texas Franchise Tax
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?
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.
No Tax Due Reports must be filed electronically beginning Jan. 1, 2016.
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).
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).
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
|Submission Option||Approved Electronic Submission Software Providers||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.
- Franchise Tax Overview
- Taxable Business Types
- Rate Information
- Due Dates
- Texas Statutes and Rules for the Revised Franchise Tax
- Franchise Tax for Reports Due On or Before December 31, 2007