Texas LLC Franchise Tax & PIR — Step 6 of 8
Texas has no personal income tax, but nearly every Texas LLC has an annual franchise tax obligation — and a Public Information Report (PIR) you can't skip. The good news: most small LLCs owe $0 because they're under the $2.65 million threshold. The catch: you still must file by May 15, or risk losing your liability protection.
For the 2026 report year, a Texas LLC owes $0 franchise tax if its annualized total revenue is $2.65 million or less — which covers most small businesses. But every LLC must still file a Public Information Report (Form 05-102) by May 15 each year, even when no tax is due. Miss it and a $50 penalty hits, and continued failure can cause your LLC to forfeit its liability protection. File through the Comptroller's Webfile system.
- No-tax-due threshold
- $2.65M (2026)
- Most small LLCs owe
- $0
- PIR required?
- Yes — even at $0
- PIR form
- 05-102
- Due date
- May 15 (annual)
- Standard rate
- 0.75%
- Late penalty
- $50 + 5–10%
- File via
- Comptroller Webfile
Does Your Texas LLC Owe Franchise Tax?
Texas doesn't have a personal income tax, but it does levy a franchise tax — a privilege tax on entities doing business in the state. Here's the part most owners get wrong: the tax applies at the entity level, so it covers your LLC even if you're a single-member LLC treated as a "disregarded entity" for federal taxes, and even if you elected S-corp status.
The relief is that most small LLCs owe $0. For the 2026 report year, if your annualized total revenue is $2.65 million or less, your franchise tax is zero. You'll only owe tax once you cross that threshold.
"Annualized total revenue" ≠ profitThe threshold is based on total revenue, not net income or what's in your bank account. "Annualized" means if your LLC operated less than 12 months, you scale the revenue up to a full year before comparing it to $2.65M.
The $2.65 Million No-Tax-Due Threshold
The threshold has climbed fast: it was $1.23M through 2023, jumped to $2.47M for 2024–2025, and rises to $2.65 million for the 2026 and 2027 report years (Texas adjusts it for inflation). That increase means more Texas LLCs than ever owe nothing.
But "owe nothing" does not mean "file nothing." Even at $0 tax, you still have a mandatory report — and that's where most owners get burned.
Franchise Tax & PIR Estimator
Enter your LLC's annualized total revenue to see whether you owe franchise tax for 2026 — and a reminder of what you must file either way:
Estimate only. Above the threshold, the Long Form figure uses the 70%-of-revenue margin method (an upper bound) and the EZ figure applies 0.331% to revenue. Your actual tax is usually lower — Texas lets you use the lowest of four margin methods after deductions. Not tax advice; confirm with the Comptroller or a CPA.
The Public Information Report (PIR) — Don't Skip This
This is the obligation that catches people. Whether you owe tax or not, every Texas LLC must file a Public Information Report (Form 05-102) with the Comptroller each year by May 15. There's no longer a separate "No Tax Due Report" — it was eliminated in 2024 — but the PIR requirement remains for all LLCs.
The PIR asks for your LLC's taxpayer number, the names and addresses of your members or managers, and your current registered agent information. That data is forwarded to the Secretary of State and becomes public record — another reason to keep your registered agent details accurate.
Skipping the PIR can cost you your liability shieldIf you fail to file the PIR, Texas can forfeit your LLC's right to transact business. The consequences are severe: your LLC loses the right to sue or defend itself in Texas courts, and each member or owner can become personally liable for the company's debts. A $0 tax bill is not a reason to skip filing.
Your first PIR is due the year after you formAn LLC formed in 2025 files its first PIR by May 15, 2026. An LLC formed in 2026 doesn't file until May 15, 2027. The deadline is a fixed annual date — not your formation anniversary.
If You're Above the Threshold: How the Tax Is Calculated
Cross $2.65M and you calculate tax on your taxable margin, then apply your rate. Texas gives you four ways to figure margin, and you legally use whichever is lowest:
- 70% of total revenue
- Total revenue minus cost of goods sold (COGS)
- Total revenue minus compensation (capped at $480,000 per person for 2026)
- Total revenue minus $1 million
| Method | Rate (2026) | Notes |
|---|---|---|
| Standard (most LLCs) | 0.75% | Applied to taxable margin |
| Retail / wholesale | 0.375% | For qualifying retailers/wholesalers |
| EZ Computation | 0.331% | Revenue ≤ $20M; applied to gross receipts; no deductions or credits |
Because EZ forfeits deductions and credits, it isn't always cheaper. If you're above the threshold, run both the Long Form and EZ before you file — this is the point where a CPA usually pays for themselves.
Deadlines, Penalties & Extensions
- Due date: May 15 every year (the next business day if it's a weekend/holiday).
- $50 late penalty on every report filed after May 15 — even a $0 report.
- 5% penalty on tax paid 1–30 days late; 10% beyond 30 days, plus interest after day 60.
- Extension to November 15 available — but it extends time to file, not to pay. Pay 90% of current or 100% of prior-year tax by May 15.
How to File (Webfile)
- Log in to Webfile on the Comptroller's site with your 11-digit taxpayer number and XT Webfile number (on the reminder letter mailed in January, or by calling the Comptroller).
- Select the 2026 franchise tax report for your entity.
- If you're at or below $2.65M, you'll complete the PIR (Form 05-102) only — no tax calculation.
- If you're above the threshold, complete the Long Form or EZ Computation, then the PIR.
- Enter your member/manager and registered agent details on the PIR and sign.
- Submit, pay any tax due, and save your confirmation as proof of filing.
- ✓Sends reminders before your May 15 franchise tax / PIR deadline
- ✓Keeps your registered agent info current — which the PIR reports
- ✓1 FREE year of Texas Registered Agent ($125 value)
- ✓No upsells · No data selling · Privacy by Default
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Texas Franchise Tax & PIR — FAQ
Ahmad Adil is the founder and CEO of LLC School. The 2026 figures on this page — the $2.65M threshold, May 15 deadline, 0.75%/0.375%/0.331% rates, PIR requirement, and forfeiture consequences — were verified against the Texas Comptroller's franchise tax pages and Tax Code §171. LLC School updates these figures each report year.
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