2026 Texas Franchise Tax Threshold: $2.65M

What is the 2026 Texas franchise tax no-tax-due threshold?

For the 2026 Texas franchise tax report, the no-tax-due threshold is $2,650,000 in annualized total revenue. An entity at or below that amount generally does not owe franchise tax or file a No Tax Due Report, but it may still have to file a Public Information Report (PIR) or Ownership Information Report (OIR). The Texas Comptroller's 2026 report guidance explains the threshold and filing rules.

The threshold concerns annualized total revenue under the franchise tax rules, not simply accounting profit or cash in the bank.

A common mistake is to interpret “no tax due” as “nothing to file.” Many taxable entities below the threshold still have a Public Information Report or Ownership Information Report obligation.

The report year matters

Texas report years and federal tax years are different labels. A 2026 annual franchise tax report generally relates to an accounting period ending in the preceding calendar year; specific reporting-period rules need to be checked. Do not compare 2026 year-to-date sales with a report that uses a different accounting period.

Annualization also matters when the accounting period is shorter than a full year. A newly formed entity should not assume that a few months of revenue can be compared directly with the annual threshold without the required calculation.

The no-tax-due form was discontinued, not every report

For report years 2024 and later, the Comptroller discontinued the No Tax Due Report. Its reporting guidance says entities at or below the threshold generally still file the appropriate information report.

There are exceptions, including specific rules for qualifying new veteran-owned businesses and certain other entities. Combined groups also require separate attention. The right answer depends on entity type and eligibility, not just the tax amount.

For an ordinary Texas LLC, the useful starting question is: “Was the required information report filed for the correct report year, and do we have confirmation?”

If a notice arrives, identify the missing obligation

The annual due date is generally May 15, adjusted for weekends or holidays. By September 2026, that ordinary annual deadline has passed. If you receive a notice, review the report year, form number, required action and stated deadline.

Do not assume a forfeiture-related notice can be ignored because the company had little revenue. Check the Comptroller account, determine what was omitted and retain proof of the corrective filing. Extensions, relief and entity-specific exceptions should be evaluated from the actual account facts.

A short record checklist

Keep the reporting-period financials, annualized revenue calculation, entity ownership and management information, filed reports, confirmations and any notices together. Record whether the company belongs to a combined group.

Tax N Tips helps Houston businesses organize bookkeeping and business tax records. Book a consultation if you are unsure whether your 2026 Texas account is current.

Sources checked September 30, 2026.