Texas Margin Tax guide
How to file the Texas Franchise (Margin) Tax
A practical walk-through of filing the Texas Margin Tax — what to gather, where to file, the deadlines, and the mistakes that trip people up.
Last reviewed June 2026 against Texas Comptroller of Public Accounts guidance.
What you'll need
- Total revenue from your federal return (annualized for short periods)
- Cost of goods sold or compensation figures, plus your Texas gross receipts for apportionment
- Your Webfile (XT) number from the Texas Comptroller
Step by step
- 1Check whether annualized total revenue exceeds the no-tax-due threshold ($2.47M for 2025, $2.65M for 2026).
- 2If you're below it, you owe no tax but generally must still file a Public Information Report (Form 05-102).
- 3If you're above it, compute margin (the lowest of the four methods), apportion to Texas, and apply your rate — or elect the E-Z computation if revenue is $20M or less.
- 4File the Long Form (05-158) or E-Z report (05-169) plus the PIR via Webfile by May 15.
Where to file
Texas Franchise Tax Report
Long Form 05-158 or E-Z 05-169 (+ PIR 05-102)
Official form / filing portalDeadlines
Annual.
- Annual reportMay 15
- Extension (non-EFT)Nov 15
- Late penalty$50 + 5–10%
Common mistakes to avoid
- "No tax due" does not mean "no filing" — the PIR or OIR is still required.
- Electing the E-Z computation gives up COGS, compensation, and all credits.
- Thresholds are tested on annualized revenue for short accounting periods.
Estimate your Texas Margin Tax and get a pre-filled worksheet first.
Open calculatorGeneral information, not tax advice — confirm the current procedure with the Texas Comptroller of Public Accounts or a qualified CPA before filing.