Texas

Corporate income tax

Texas imposes no corporate income tax. Corporations (and most other entities) instead owe the franchise (margin) tax, with the annual report due May 15 (next business day if May 15 falls on a weekend or holiday).

Extension must be requested on or before May 15

Partnerships and S corporations

Texas has no personal income tax and therefore no PTE/SALT-workaround election. The franchise tax itself is an entity-level tax that applies to LLCs (including single-member LLCs), partnerships, S corporations, corporations, LLPs, trusts, professional associations and joint ventures. Not subject: sole proprietorships (other than SMLLCs) and general partnerships owned directly and entirely by natural persons (other than LLPs).

Sales and use tax

Due date. Returns and payments are due on or before the 20th day of the month following the end of the reporting period (monthly: 20th of the following month; quarterly: April 20, July 20, October 20, January 20; yearly: January 20). If the due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date.

Filing frequency. The Comptroller assigns monthly, quarterly or yearly filing and notifies the taxpayer by letter after the permit is issued. Per Tax Code 151.401 and 34 TAC 3.286: $1,500 or more in state sales and use tax per quarter = monthly; less than $1,500 per quarter may file quarterly; less than $1,000 in state tax per calendar year may file yearly upon Comptroller authorization.

Thresholds. Monthly: $1,500+ state tax per quarter. Quarterly: less than $1,500 state tax per quarter. Yearly: less than $1,000 state tax per calendar year (requires Comptroller authorization). Payment-method tiers (not frequency): under $10,000, $10,000-$49,999, $50,000-$499,999, $500,000+ annual liability; $500,000+ must pay via TEXNET.

Prepayments. Optional prepayment program, not a mandatory accelerated schedule: monthly or quarterly filers who prepay a reasonable estimate (at least 90% of the current period's tax, or 100% of the tax paid for the same period in the prior year) may take a 1.25% prepayment discount in addition to the 0.5% timely filing discount available to all taxpayers who file and pay on time. Prepayments are due on or before the 15th day of the month (monthly filers) or the 15th day of the second month of the quarter (quarterly filers); the return is still due on the regular 20th due date. Failure to prepay a reasonable estimate forfeits the entire prepayment discount.

Annual report

Due May 15 annually (2026-05-15), the same date as the franchise tax report (Texas Comptroller of Public Accounts...)

Notes

Texas has no corporate or personal income tax; the franchise (margin) tax is the entity-level business tax. Change effective for reports due on/after Jan 1, 2024: No Tax Due Report eliminated, PIR/OIR still required; threshold rose from $2.47M (2024-2025 reports) to $2.65M (2026-2027 reports).