For 2026 and 2027 reports, a Texas LLC with annualized total revenue at or below $2,650,000 owes $0 in franchise tax. It still has to file. That’s the heart of the Texas franchise tax LLC owners need to understand, and missing it is how small companies lose good standing.
The Texas Comptroller of Public Accounts, not the Secretary of State, runs this tax. Annual reports are due May 15. With an approved extension, most filers get until November 15, which moves to November 16, 2026 this year because the 15th falls on a Sunday. Rates run from 0.331% (EZ Computation) to 0.75%.
This post contains affiliate links. If you sign up through our links, we may earn a commission at no cost to you. Our recommendations are based on independent research and are never influenced by partners.
Key Takeaways
- Texas LLCs file every year, even when no tax is due. At or below the no-tax-due threshold, that means filing a Public Information Report (PIR).
- The no-tax-due threshold is $2,650,000 for 2026 and 2027 reports. It was $2,470,000 for 2024 and 2025.
- The standard deadline is May 15. If you’re on extension for your 2026 report, the deadline is November 16, 2026.
- An extension gives you more time to file, not more time to pay. You pay with the extension request.
- Late reports cost a $50 penalty each, and an LLC that stays delinquent can lose its right to do business in Texas.
Last updated: October 25, 2026
What the Texas Franchise Tax Is (and Isn’t)
Texas has no personal income tax, but it does tax the “margin” of most entities doing business in the state, including LLCs, corporations, and limited partnerships. It isn’t an income tax, and it isn’t an annual report fee either.
The Secretary of State handles formation and registration. The Comptroller handles the franchise tax and the PIR that goes with it.
Three points trip people up:
- “No tax due” isn’t “no filing.” Below the threshold you owe $0, but you still file a PIR by the deadline.
- The report year isn’t the revenue year. Your 2026 report is based on an earlier accounting period, not on revenue you earn during 2026. The Comptroller’s report instructions show which period to use.
- Single-member LLCs aren’t exempt just because they’re disregarded for federal income tax. Our guide to single-member LLC taxes covers the federal side.
Texas Franchise Tax LLC Threshold: When You Owe $0
If your annualized total revenue is at or below the no-tax-due threshold, you owe no franchise tax for that report year. Per the Comptroller’s franchise tax page, the threshold is $2,650,000 for 2026 and 2027 reports. For 2024 and 2025 reports it was $2,470,000.
The Comptroller adjusts this number every two years, so don’t reuse an old figure from memory.
Since reports due on or after Jan. 1, 2024, Texas no longer uses a separate No Tax Due Report. According to the Comptroller’s No Tax Due update, an LLC at or below the threshold files only its PIR.
Example (illustrative only): Say your LLC brought in $400,000. That’s far under the threshold, so you owe $0 in tax. You still file your PIR by May 15 (or by your extended deadline). An LLC above the threshold works out its margin and pays.
How the Texas Franchise Tax Is Calculated
Above the threshold, you figure out taxable margin, apportion it to Texas, and apply a rate.
Step 1: Pick a Margin Method
According to the Comptroller’s franchise tax overview, margin is computed in one of these ways, and you’ll generally want the one that produces the lowest margin:
- Total revenue times 70%
- Total revenue minus cost of goods sold
- Total revenue minus compensation (the compensation deduction is capped at $480,000 per person for 2026 and 2027 reports)
- Total revenue minus $1 million
Step 2: Apportion to Texas
Texas uses a single-factor formula based on gross receipts. Your margin is multiplied by the share of your gross receipts that come from Texas. A Texas-only business apportions nearly everything. A multi-state seller may owe on much less.
Step 3: Apply the Rate
| Computation / entity type | Rate (2026 and 2027 reports) | Source |
|---|---|---|
| EZ Computation (annualized total revenue of $20 million or less) | 0.331% | Texas Comptroller |
| Retail or wholesale trade | 0.375% | Texas Comptroller |
| All other entities | 0.75% | Texas Comptroller |
The EZ Computation multiplies apportioned total revenue by 0.331%. If you choose it, you can’t take the cost of goods sold or compensation deductions or claim credits. It’s quicker to file, but depending on your costs it may not produce the lowest tax.
Texas Franchise Tax LLC Deadlines and Extensions to November 16
| Item | Date | Notes |
|---|---|---|
| Franchise tax report (or PIR only, if at or below the threshold) | May 15 | When a due date falls on a Saturday, Sunday, or legal holiday, the next working day becomes the due date. |
| Public Information Report | Same due date as the annual report | Filed with the Comptroller through Webfile or by mail. |
| Extended deadline | November 15 (November 16 in 2026) | November 15, 2026 is a Sunday, so the extended deadline moves to Monday, November 16. |
How Extensions Work
Per the Comptroller’s extension rules, you request the extension by May 15 and pay with it, either 90% of the tax due for the current year or 100% of the tax paid in the prior year. That extends the due date to November 15. Mandatory EFT payers follow a different path: their first extension runs to August 15.
Under the threshold? The Comptroller’s extension FAQ says an entity that can’t file its PIR by May 15 can file a no-payment extension by the due date and move the PIR to November 15.
Here’s the part people always miss. An extension gives you more time to file, not more time to pay. The payment rides with the extension request on May 15.
The Public Information Report (PIR)
Every Texas LLC, and every out-of-state LLC with nexus in Texas, files a PIR (Form 05-102) each year on the annual report due date. It lists your officers, directors, managers, or members and your registered agent, and the information becomes public record. Treat it as an annual checklist item:
- Confirm the names and addresses of your managers or members.
- Confirm your registered agent. Our registered agent comparison shows what renewals cost.
- Submit it through the Comptroller’s Webfile system or by mail, as described on the PIR and OIR page.
- Don’t skip it because you owe nothing. The Comptroller warns that an entity can forfeit its right to do business in Texas for failing to file it.
Two groups don’t file a PIR: entities that qualify as passive (they file an EZ Computation or Long Form report to affirm passive status instead) and qualifying new veteran-owned businesses during their first five years.
What Happens If You Miss the Texas Franchise Tax Deadline
Late filing causes real problems, but the path is predictable. According to the Texas Comptroller:
- A $50 penalty is assessed on each report filed late.
- Tax paid 1 to 30 days late carries a 5% penalty. After 30 days it’s 10%.
- Interest on past-due tax begins 61 days after the due date.
- An LLC that stays delinquent receives a forfeiture notice (Form 05-211 or 05-213) and can lose its right to transact business in Texas.
Already late? File as soon as you can.
To reinstate, the Comptroller’s reinstatement steps are: file all outstanding franchise tax reports and PIRs, pay any tax, penalty, and interest, then request a tax clearance letter through Webfile or with Form 05-391. You then submit that letter with your reinstatement filing to the Secretary of State. Don’t wait for a notice.
A Simple Texas Franchise Tax Calendar
| When | Task |
|---|---|
| January–February | Close your books for the prior year and reconcile bank accounts |
| March–April | Gather revenue, COGS, and compensation totals, and check the Comptroller’s current threshold and forms |
| Early May | File the report and PIR, or request an extension and pay |
| May 15 | Standard deadline |
| October | If on extension, finalize numbers |
| November 16, 2026 | Extended deadline for this year’s report |
| December | Update registered agent and member information and set next year’s reminders |
Recordkeeping That Makes Filing Easier
- Keep a separate business bank account so revenue is easy to total. Our guide to business bank accounts for new LLCs covers what to compare.
- Track cost of goods sold and compensation separately. You may need them for a margin deduction.
- Save a copy of every filed report, PIR, and payment confirmation.
- Check the Comptroller’s website each year. Thresholds and forms change.
If you’d rather not keep the books yourself, an online bookkeeping service such as Xendoo can maintain monthly records, so your revenue, COGS, and compensation totals are ready when the report is due.
Filing Yourself or Paying for Help
You can file directly with the Comptroller through Webfile. Many small LLCs under the threshold only need to file the PIR and can handle it on their own.
A CPA may be worth the fee if you have multi-state revenue, a complicated margin calculation, or a delinquent account.
Texas Franchise Tax LLC FAQ
Do I have to file if my LLC made no money?
Yes. For reports due on or after Jan. 1, 2024, the No Tax Due Report was eliminated, so an LLC at or below the no-tax-due threshold ($2,650,000 for 2026 and 2027 reports) files only its PIR. Passive entities file an EZ Computation or Long Form report instead and don’t file a PIR. Qualifying new veteran-owned businesses don’t file either during their first five years.
Is the franchise tax the same as the Texas annual report fee?
No. Texas LLCs don’t file a separate Secretary of State annual report like many states require. The franchise tax report and PIR go to the Comptroller.
What is the deadline if I get an extension?
For 2026 reports, November 16, 2026. The normal extended date is November 15, which falls on a Sunday this year. An LLC under the threshold can extend its PIR to the same date with a no-payment extension.
What rate will my LLC pay?
For 2026 and 2027 reports, 0.75% for most entities, 0.375% for qualifying retail and wholesale businesses, or 0.331% with the EZ Computation if annualized total revenue is $20 million or less.
Can I fix a missed filing?
Usually. File every outstanding report and PIR, pay what you owe, and get a tax clearance letter from the Comptroller if your LLC was forfeited. The longer you wait, the more penalties and interest build up.
Your Next Step
Put November 16 on your calendar today if you’re on extension. Then compare Texas against other states in our LLC annual report fees and deadlines by state guide. And if you’re still choosing where to form, see how every state stacks up in Cheapest States to Start an LLC.
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
