Texas LLC No Tax Due 2026: What You Actually File
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The "No Tax Due Report" no longer exists
If you own a Texas LLC and earned under the franchise tax threshold last year, you've probably been told to file a "No Tax Due Report" by May 15. That guidance is two years out of date. The Texas Comptroller eliminated Form 05-163 for reports due on or after January 1, 2024. It does not exist for the 2026 report year. What replaced it is simpler — but the old advice is still circulating, and skipping the correct filing is more dangerous than a $50 late fee suggests.
Texas has no income tax, but it has a franchise tax
Texas does not impose individual or corporate state income tax. But it does impose a franchise tax — a privilege tax on every taxable entity formed in or doing business in the state. That covers single-member LLCs, multi-member LLCs, S-Corps, C-Corps, limited partnerships, professional associations, and financial institutions. Sole proprietorships and general partnerships are generally not subject to it. For the 2026 report year, the structure works like this:
Most small business owners reading this — designers, freelance consultants, ecommerce sellers, real estate side income — are well below $2.65M. That means you owe no franchise tax. But it does not mean you have nothing to file.
What the threshold actually exempts you from
Before 2024, an LLC under the threshold filed a No Tax Due Report (Form 05-163) plus a Public Information Report (Form 05-102) — two pieces of paper. Effective for reports due on or after January 1, 2024, the Comptroller eliminated the No Tax Due Report. If your annualized total revenue is at or below $2.65M, you are exempt from filing a franchise tax report at all.
What you still must file is the information report — either the PIR or the OIR, depending on your entity type. This is not optional just because you owe nothing. It's how Texas tracks who owns and runs your business, and what the Secretary of State uses to maintain your good standing.
Form 05-167 (OIR) — every other taxable entity.
Most readers of this article are LLC owners — Form 05-102 is your form.
How to file the PIR through Webfile
Texas requires electronic filing through webfile.comptroller.texas.gov. The whole process takes about 12 minutes. Before you start, gather:
- Your 11-digit Texas taxpayer number (on your Welcome Letter or any prior franchise tax notice)
- Your 6-digit Webfile (RT) number (also on the Welcome Letter — different from the taxpayer number)
- Current names and mailing addresses of every officer, director, manager, or managing member
- The name and Texas address of your registered agent on file with the Secretary of State
Worked example — Maria's Texas design LLC
Maria runs a single-member LLC out of Austin doing branding and web design for restaurants. Her 2025 calendar year revenue was $60,000, net profit $42,000, paid through owner draws. She formed the LLC in 2023, so 2026 is her third filing year.
- Annualized total revenue: $60,000
- 2026 threshold: $2,650,000
- Franchise tax owed: $0 (well below threshold)
- Franchise tax report required: None — Form 05-163 doesn't exist anymore
- Information report required: Form 05-102 (PIR)
- Deadline: May 15, 2026
- Filing method: Webfile
- Cost: $0
Maria logs in to Webfile, lists herself as the sole managing member, confirms her registered agent, and submits. The whole thing takes 11 minutes. She owes Texas nothing on her business income for the year. But the PIR keeps her LLC in good standing and preserves her limited liability protection.
The penalty question is more complicated than it looks
You'll see other articles claim a $50 late-filing penalty for missing the PIR. That's incorrect for entities below the threshold. The Comptroller's official position, published on the Tax Notices page: "There is no $50 penalty for late filing a PIR or OIR." The $50 penalty applies to late franchise tax reports — and you don't file one when you're under the threshold. The real consequence of missing the PIR is much worse than $50.
Stage 2: If you don't respond within roughly 45 days, your LLC's right to transact business in Texas is forfeited. You cannot sue or defend yourself in Texas courts.
Stage 3: The Secretary of State may forfeit your LLC's charter entirely, terminating the entity.
Stage 4: Members and managers may become personally liable for debts the LLC incurs while its privileges are forfeited — limited liability protection is lost.
Stage 5: To reinstate, you file all delinquent reports, pay any penalties, request a Tax Clearance Letter (Form 05-377) from the Comptroller, then submit Form 801 plus a $75 fee to the Secretary of State.
The $50 vs. $0 question is a distraction. The real cost of skipping the PIR is losing your limited liability shield and spending weeks restoring your entity. That's why every Texas LLC — even one that's dormant, even one that earned $0 — must file the PIR every May.
What to do if you're already late
If you missed a prior year's PIR, file it now. Check your status using the Comptroller's Taxable Entity Search first. There are three possible states:
- Active. You're in good standing despite the late filing. File the PIR for any missed years and you're done.
- Right to Transact Business — Forfeited. Your LLC is still legally formed but cannot conduct business or use the courts. File all delinquent PIRs through Webfile and the right to transact business is typically restored within a few business days.
- Charter Forfeited. The Secretary of State has terminated your LLC. File every delinquent report, request Form 05-377 (Tax Clearance Letter), then file Form 801 (Reinstatement) with the SOS plus the $75 fee. Your LLC name may have been claimed by someone else in the meantime.
Common mistakes
- Filing the wrong (nonexistent) form. Anyone telling you to file Form 05-163 for 2026 is working from outdated information. The form was eliminated effective January 1, 2024.
- Assuming dormant LLCs are exempt. Zero revenue does not exempt you. The PIR obligation is tied to entity existence, not activity.
- Stale officer or registered agent address. If your manager moved or you switched registered agents, the Comptroller mails notices to the old address — and you never receive them.
- Listing your home address. The PIR is public record and indexed by name. Use a commercial address if privacy matters.
- Confusing federal and state filing. The PIR is unrelated to Form 1040, 1065, 1120, or 1120-S. Filing federal taxes does not satisfy your Texas obligation.
Frequently asked questions
May 15, 2026 (Friday). The deadline is the same regardless of your accounting year-end. If May 15 falls on a weekend in future years, it shifts to the next business day.
No franchise tax (under the $2.65M threshold) and no state income tax (Texas has none). You'll still owe federal income tax and self-employment tax on your business profit through Form 1040 and Schedule SE.
Yes. The PIR obligation applies as long as the entity exists. The only way to stop filing is to formally terminate the LLC with the Secretary of State and file a final franchise tax report.
First-year Texas entities don't file until the May 15 of the year following formation. An LLC formed in March 2026 has its first PIR due May 15, 2027.
Yes. Form 05-164 extends your filing deadline to November 15. File it through Webfile before May 15. The extension covers both the franchise tax report (if required) and the PIR/OIR.
Texas does not require an annual report from LLCs at the Secretary of State level. The PIR (filed with the Comptroller) functions as the equivalent — the Comptroller forwards your management roster to the SOS after processing.
If your LLC was formed in another state but is registered to do business in Texas (or has Texas economic nexus), yes — file Form 05-102 the same way as a Texas-domestic LLC.
This article provides general information about US tax topics and is not a substitute for personalized advice from a qualified tax professional. Tax law changes frequently — verify current rules with a tax professional before filing or making decisions based on this content.
