Texas Franchise Tax — Who Files, the No-Tax-Due Threshold, and Which Form
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**Summary:** Every taxable entity formed or doing business in Texas has an annual franchise tax filing obligation due May 15, but most small businesses owe no tax: for report years 2026 and 2027 an entity with annualized total revenue of $2,650,000 or less owes nothing and files only an information report. Above that, revenue up to $20 million may use the EZ Computation at a 0.331% rate; larger entities (or those wanting margin deductions) file the long form at 0.375% (retail/wholesale) or 0.75% (other). Applies to franchise tax report years 2024–2027; figures verified against the Texas Comptroller on 2026-07-10.
Who must file Taxable entities include LLCs, corporations, S corporations, partnerships (except certain general partnerships owned solely by natural persons), and professional associations formed in or doing business in Texas. Sole proprietorships are not subject to the tax. The annual report is due May 15 (next business day if a weekend/holiday). Tex. Tax Code ch. 171.
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