When Are Texas Franchise Tax Reports Due?

The Texas franchise tax is an annual business tax imposed on entities operating in Texas. It applies to most taxable entities formed or organized in Texas or those conducting business within the state. This tax functions as a fee for the opportunity to operate in the Texas economy, distinct from sales or corporate income tax. Businesses must understand its due dates and filing requirements to maintain compliance.

Standard Annual Due Date

The annual Texas franchise tax report is due on May 15th of each year. This date applies to most taxable entities, regardless of their fiscal year end. If May 15th falls on a weekend or a federal legal holiday, the due date automatically shifts to the next business day.

The May 15th deadline is the final date for submitting the franchise tax report and remitting any tax owed without incurring penalties or requiring an extension. For entities operating on a calendar year, this due date directly follows their accounting period. For those on a fiscal year, the May 15th due date still applies based on their prior year’s activity.

Determining Your Filing Obligation

A “taxable entity” for Texas franchise tax purposes includes corporations, limited liability companies (LLCs), partnerships, and other business associations formed or doing business in Texas. Even entities that are disregarded for federal income tax purposes, such as single-member LLCs, are considered taxable entities and have a filing responsibility. However, sole proprietorships and certain general partnerships composed entirely of natural persons without limited liability are not subject to the tax.

The type of report a business must file depends on its total revenue. Entities with annualized total revenue below a certain threshold, which for 2024 and 2025 is $2.47 million, are not required to pay franchise tax and, as of 2024, no longer need to file a “No Tax Due Report.” Instead, these entities must file a Public Information Report (PIR) or Ownership Information Report (OIR) by the May 15th deadline to inform the state about their ownership and management.

Businesses with total revenue up to $20 million may qualify to file an EZ Computation Report, which offers a simplified calculation method. Entities exceeding this threshold or those not opting for the EZ computation must file the Long Form Report, which involves a more detailed calculation based on margin. New entities do not file an initial franchise tax report; their first Public Information Report is due on May 15th of the year following their formation.

Filing and Payment Procedures

Businesses can file their Texas franchise tax reports and make payments electronically through the Comptroller’s WebFile system. This online portal provides a streamlined submission process. After logging into WebFile, taxpayers can select the appropriate report type, such as the Public Information Report, EZ Computation Report, or Long Form Report, and proceed with the digital submission.

Payment methods accepted through WebFile include electronic funds transfer (EFT) and credit card, though credit card payments may incur a convenience fee. Alternatively, businesses can mail their reports and payments, ensuring that mailed checks are postmarked by the due date. For entities with higher tax liabilities (those that paid $10,000 or more in franchise taxes in the prior state fiscal year), electronic payment via EFT or TEXNET is required. Payments made through WebFile or TEXNET must adhere to specific timeframes, often requiring submission by late evening on the due date or the preceding business day for larger amounts.

Requesting a Filing Extension

If a business cannot meet the May 15th filing deadline, an extension to file the Texas franchise tax report can be requested. An extension grants additional time to file the report, but it does not extend the deadline for paying any tax due. To obtain a valid extension, businesses must pay either 100% of the prior year’s tax liability or at least 90% of the current year’s estimated tax by the May 15th due date.

The extension request can be submitted online through WebFile or by mailing Form 05-164, the Texas Franchise Tax Extension Request. For most taxpayers, a timely filed extension extends the report due date to November 15th. However, entities required to make electronic payments (EFT payers) receive an initial extension until August 15th, with a second extension to November 15th available upon further payment of any remaining balance due.