When is the Texas Franchise Tax due, and which entities owe it?

Annual Texas Franchise Tax reports are due May 15 each year. The tax applies to corporations, LLCs, partnerships (except general partnerships of natural persons), and most business entities formed in or doing business in Texas. Entities with Texas revenue under the no-tax-due threshold ($2.47M for 2026 reports) still file but owe no tax — they must file Form 05-163 (No Tax Due Report).

What happens if I file my federal return after April 15?

If you owe tax and file after April 15 without an approved extension, the IRS assesses a failure-to-file penalty (5% of unpaid tax per month, up to 25%) plus a failure-to-pay penalty (0.5% per month) plus interest. If you're due a refund, there's no late-filing penalty — but you have only three years from the original deadline to claim it. CPAs should advise extension filers that an extension extends time to file, never time to pay.

Do state filing deadlines automatically follow federal?

Most states conform to the federal April 15 individual deadline, but conformity varies for corporate, pass-through, and franchise filings. Several states have unique deadlines: Louisiana (May 15), Virginia (May 1), Iowa (May 1 for individual), Delaware (April 30 for individual). Always verify against the state revenue department site — TaxScout links to the authoritative source on every state page.

Are estimated quarterly payments mandatory for CPA-firm clients?

Federally, individuals must pay estimated tax if they expect to owe $1,000 or more after withholding. C-corporations have a $500 threshold. Underpayment triggers Form 2210 / 2220 penalties calculated quarterly. Most CPA firms advise clients to safe-harbor at 100% of prior-year liability (110% for AGI over $150K) to avoid the penalty entirely.

Tax Year 2026 · Filed 2027State-revenue-department verifiedNo state income tax

Texas tax deadlines 2026

Last updated May 13, 2026

Texas has no individual or corporate income tax — only federal 1040 applies to personal returns.
Texas Franchise Tax (also called margin tax) is due May 15 each year for entities with Texas revenue over the no-tax-due threshold ($2.47M for 2026 reports).
Texas sales and use tax filings are due monthly, quarterly, or annually depending on volume.

Texas state income tax

Texas does not impose an individual or corporate income tax. Texas business entities owe Texas Franchise (Margin) Tax instead.

Authoritative source

Texas Franchise (Margin) Tax

Filing deadline

May 15, 2026

Extension deadline

November 15, 2026

Annual franchise tax report and Public Information Report (PIR) due May 15. Entities with Texas revenue under the no-tax-due threshold ($2.47M for 2026 reports) still file but owe no tax. Rates: 0.375% retail/wholesale, 0.75% other.

Authoritative source

Texas sales and use tax

Filing frequency assigned by Comptroller based on volume: monthly (>$1,500/month), quarterly, or annually. Returns due by the 20th of the month following the period.

Authoritative source

Federal individual income tax (Form 1040)

Filing deadline

April 15, 2027

Extension deadline

October 15, 2027

Quarterly payments

Q1 2026

Jan 1 – Mar 31, 2026

April 15, 2026

Q2 2026

Apr 1 – May 31, 2026

June 15, 2026

Q3 2026

Jun 1 – Aug 31, 2026

September 15, 2026

Q4 2026

Sep 1 – Dec 31, 2026

January 15, 2027

Authoritative source

Federal S-corp & partnership (Form 1120-S / 1065)

Filing deadline

March 16, 2027

Extension deadline

September 15, 2027

Authoritative source

Authoritative resources

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TaxScout's tax form library walks through every IRS form CPA firms file for Texas clients — who must file, key fields, common mistakes, and step-by-step instructions.

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Frequently Asked Questions

Texas-specific and federal questions for tax year 2026.

No. Texas is one of nine US states with no individual income tax. Texas residents file only federal Form 1040 for personal income tax purposes. Texas does, however, impose a Franchise (Margin) Tax on most business entities — including LLCs and corporations — with Texas revenue above the no-tax-due threshold.

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