The franchise tax report comes around every year, and the filing matters even when no tax is due. Here is what the Comptroller says and how to set money aside.
Apply Now →According to the Texas Comptroller of Public Accounts, the annual franchise tax report is due May 15. When May 15 falls on a weekend or holiday, the due date moves to the next business day. Businesses whose revenue is at or below the no-tax-due threshold owe no tax but still file, using the Public Information Report or Ownership Report.
This page summarizes the Comptroller's published guidance. It is not tax advice. The Comptroller's franchise tax page has the current thresholds, forms and instructions, and a tax professional can say how they apply to your entity.
The owner may owe nothing, but still has a filing requirement. Missing the filing is a separate problem from owing tax, and it is easy to overlook because no money changes hands.
The owner owes tax and has to have the cash on hand by the due date. Because the report comes in spring, owners who had a slow winter or paid for a big project can be caught short.
| Obligation | Timing per the state | Cash planning note |
|---|---|---|
| Franchise tax report | May 15, or next business day | Set aside monthly rather than in one lump |
| Sales tax | Monthly or quarterly, as notified by letter | Timely filers get a 0.5% discount |
| Unemployment wage report and tax | Last day of the month after each quarter ends | Tied to payroll, so grows with hiring |
The sales tax figures come from the Comptroller. The maximum combined state and local sales tax rate is 8.25%. For the details that apply to your business, see the Comptroller and the Texas Workforce Commission.
Suppose an owner estimates a franchise tax bill of $6,000. Setting aside $500 each month through the year costs little, and the bill is covered by May. The owner who ignores it faces a $6,000 payment in a single spring month. These figures are invented to illustrate the habit and are not an estimate of anyone's tax.
A separate savings account for tax obligations keeps the money out of daily operations and makes it harder to spend by accident.
Owners sometimes look at short-term working capital to cover a tax payment when cash is tight. That can be reasonable for a known, one-time amount, but it only works if the business can carry the repayment afterward. Before borrowing, ask the Comptroller or a tax professional what options exist for your situation.
Funding ranges from $25,000 to $5,000,000, and can arrive in as little as 24 hours. The application takes about five minutes. Sole proprietors can apply.
May 15, or the next business day if it falls on a weekend or holiday, per the Comptroller.
The Comptroller says businesses at or below the no-tax-due threshold file the Public Information Report or Ownership Report.
Some owners use it for that, but only if they can carry the repayment. Ask a professional about alternatives first.
No. It summarizes the Comptroller's published guidance. Check the Comptroller or a tax professional for your case.
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