Texas Tax Changes 2026: Franchise Tax Thresholds | HelloBooks The 2026 franchise tax no tax due threshold is $2.65 million and the No Tax Due Report is gone. What small Texas entities file instead.
Texas has no personal income tax, so the change your firm handles is the franchise tax report. Small entities file differently for 2026.
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No tax due threshold, 2026
$2.65 million
Applies: 2026 reportsFrom IRS.gov · checked October 10, 2026
The Comptroller says the no tax due threshold for the 2026 report is $2.65 million and the No Tax Due Report is not available for 2026 reports. An entity at or below the threshold files its Public Information Report or Ownership Report instead.
A new Form 05-181 summarizes franchise tax credits for 2026 and later, and the R&D credit filing requirements changed from January 1, 2026, with Form 05-182 for the Subchapter T credit.
Rates are 0.375% for retail or wholesale and 0.75% for other entities. The annual report is due May 15, or the next business day.
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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