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Texas Business Tax Deadlines (2026)

Next: May 15 — Form 990 due for nonprofits; Texas Franchise Tax return due May 15

Next Deadline: May 15 — Form 990 due for nonprofits; Texas Franchise Tax return due May 15

Federal Tax Deadlines (2026)

FormWho FilesDue DateExtension Deadline
Form 1040 (Schedule C)Sole proprietorsApril 15October 15
Form 1065Partnerships, Multi-member LLCsMarch 15September 15
Form 1120-SS-CorporationsMarch 15September 15
Form 1120C-CorporationsApril 15October 15
Form 990NonprofitsMay 15November 15
Estimated Taxes (Q1-Q4)AllApr 15, Jun 15, Sep 15, Jan 15 2027

Texas State Tax Deadlines (2026)

Tax TypeWho FilesDue DateExtension Deadline
Individual Income TaxNone — Texas has no personal income taxN/AN/A
Corporate Income TaxNone — Texas has no corporate income taxN/AN/A
Franchise Tax (Margin Tax)Taxable entities with revenue over $2.47 millionMay 15November 15
Franchise Tax — No Tax DueEntities with revenue under $2.47 millionMay 15November 15
Sales & Use TaxBusinesses with taxable salesMonthly (20th), quarterly, or annual
Payroll — Employer WithholdingNone — no state income tax to withholdN/AN/A
Payroll — Unemployment InsuranceEmployersQuarterly (last day of month following quarter)
Annual Report (Public Information Report)All taxable entitiesMay 15 (filed with franchise tax)November 15

Quarterly Estimated Tax Deadlines in Texas

Texas has no personal or corporate income tax, so there are no state estimated income tax payments. You only need to make federal estimated tax payments on the standard schedule:

QuarterFederal Due Date
Q1April 15
Q2June 15
Q3September 15
Q4January 15, 2027

Sales tax returns follow their own schedule — monthly filers remit by the 20th of the following month.

Texas-Specific Tax Requirements

Texas is the largest state with no personal income tax and no corporate income tax. The Texas Constitution prohibits a personal income tax without voter approval, making it one of the most business-friendly states in the nation. Sole proprietors and pass-through entity owners pay no state tax on business income — only federal taxes apply.

However, Texas imposes a Franchise Tax (also called the Margin Tax) on most entities doing business in the state. The tax rate is 0.375% for retail and wholesale businesses and 0.75% for all other businesses, calculated on the lesser of: total revenue minus cost of goods sold, total revenue minus compensation, 70% of total revenue, or total revenue minus $1 million. Entities with total revenue of $2.47 million or less (the no-tax-due threshold for 2026, adjusted annually) owe no franchise tax but must still file. Sole proprietorships and general partnerships owned by natural persons are exempt.

Texas's Sales and Use Tax has a state rate of 6.25%, with local additions of up to 2%, bringing the combined maximum to 8.25%. Monthly returns are due by the 20th of the following month. The sales tax base is relatively standard — most tangible goods are taxable while most services are not, with exceptions for data processing, telecommunications, and amusement services. All taxable entities must file a Public Information Report and franchise tax report (or no-tax-due report) with the Comptroller by May 15 each year — note this is different from the typical April 15 tax deadline.

What Happens If You Miss a Texas Tax Deadline?

For the franchise tax, a 5% penalty is assessed if the tax is paid 1–30 days late. The penalty increases to 10% if paid more than 30 days late. Interest accrues at the rate set by the Comptroller — approximately 7.25%–9.25% per year for 2026 (calculated as the prime rate plus 1%).

For sales tax, penalties escalate similarly: 5% for 1–30 days late and 10% for more than 30 days late. If the state issues a jeopardy determination, a 10% additional penalty may apply.

Texas grants an automatic 6-month extension for franchise tax (to November 15) by filing Form 05-164, but 90% of the tax due must be paid by May 15 or an additional 10% late payment penalty applies. Failure to file the franchise tax return and Public Information Report can result in forfeiture of your entity's right to do business in Texas and eventual involuntary termination/revocation.

Texas Comptroller of Public Accounts

  • Website: https://comptroller.texas.gov/
  • Phone: (800) 252-1381
  • Online Filing: https://comptroller.texas.gov/taxes/file-pay/
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