2019 Texas Franchise Tax Report Information and Instructions
Overview
The Texas Franchise Tax is an annual tax imposed on businesses that are organized or do business in Texas. The tax is based on the business’s taxable margin, which is generally the business’s gross receipts minus certain deductions.
Who Must File
All businesses that are organized or do business in Texas must file a Franchise Tax Report, unless they are exempt. Exempt businesses include:
- Businesses with gross receipts of less than $1 million in the taxable year
- Businesses that are organized as a sole proprietorship or partnership
- Businesses that are organized as a corporation and have elected to be taxed as an S corporation
- Businesses that are organized as a limited liability company (LLC) and have elected to be taxed as a corporation
When to File
The Franchise Tax Report is due on or before May 15th of the year following the taxable year. If the business’s taxable year ends on a date other than December 31st, the report is due on or before the 15th day of the 5th month following the end of the taxable year.
How to File
The Franchise Tax Report can be filed online, by mail, or by phone.
Online Filing
The easiest way to file the Franchise Tax Report is online. To file online, you will need to create an account on the Texas Comptroller of Public Accounts website. Once you have created an account, you can log in and follow the instructions to file your report.
Mail Filing
To file by mail, you can download the Franchise Tax Report forms from the Texas Comptroller of Public Accounts website. Once you have completed the forms, you can mail them to the following address:
Texas Comptroller of Public Accounts
Franchise Tax Division
P.O. Box 149285
Austin, TX 78714-9285
Phone Filing
To file by phone, you can call the Texas Comptroller of Public Accounts at 1-800-252-1381.
Penalties for Late Filing
If you fail to file your Franchise Tax Report on time, you may be subject to penalties. The penalties for late filing are:
- A late filing penalty of 5% of the tax due, plus 1% for each month or part of a month that the report is late, up to a maximum of 25%
- A penalty of $50 for each month or part of a month that the report is late, up to a maximum of $500
Additional Information
For more information about the Texas Franchise Tax, please visit the Texas Comptroller of Public Accounts website or call 1-800-252-1381.
