Texas franchise tax in 2026: no tax due does not always mean no filing

For Texas franchise tax report years 2026 and 2027, the no-tax-due threshold is $2,650,000. An entity with annualized total revenue at or below that threshold generally does not owe franchise tax. The threshold is based on revenue under the franchise tax rules, not simply accounting profit or cash in the bank. The Texas Comptroller's franchise tax page lists the current amounts.

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 5, 2026.