Texas LLCs with annualized revenue under $2,650,000 owe $0 in franchise tax for 2026 — but "no tax due" does not mean "no filing required." You still must meet the May 15 annual deadline or face a $50 penalty, and eventually risk forfeiture of your LLC. Here's exactly what you need to file when your franchise tax bill is zero.
What "no tax due" means for your Texas LLC
Texas franchise tax applies to virtually every LLC formed or doing business in Texas — but not every LLC actually owes money. The Comptroller sets a revenue threshold each year; LLCs below it owe $0 in franchise tax.
For 2026, that threshold is $2,650,000 in annualized total revenue. If your LLC's gross receipts for the prior calendar year (January 1 – December 31, 2025) fall below this amount, you have no franchise tax liability.
Here is the part most LLC owners miss: owing $0 in tax and having no filing obligation are two completely different things. Texas law requires every LLC to file an annual report with the Comptroller by May 15 regardless of how much tax it owes. There is no exemption for small or inactive businesses.
Common mistake: Many LLC owners Google "Texas franchise tax no tax due" hoping to find confirmation that they don't have to file anything. The answer is: you don't owe tax, but you still have a filing deadline. Skip it and you'll owe a $50 penalty — and risk your LLC's standing.
Step 1: Confirm you fall under the 2026 no-tax-due threshold
Before deciding which form to file, determine whether your LLC's annualized total revenue is below $2,650,000.
What counts as total revenue for this calculation?
Total revenue for Texas franchise tax purposes is generally your LLC's gross receipts from all sources, minus a narrow list of exclusions such as returns and allowances. For most simple service or product LLCs, total revenue equals your gross income before expenses — not your net profit.
To calculate annualized total revenue:
- Add up your LLC's total gross receipts for the period covered by the report (typically the 2025 calendar year).
- If your LLC was in existence for less than a full year, divide by the number of days in operation and multiply by 365 to get the annualized figure.
- Compare that number to $2,650,000.
If you're under $2,650,000, proceed to Step 2. If you're at or above $2,650,000, you'll need to file a franchise tax computation form — see our Texas franchise tax EZ computation guide for the full walkthrough.
Tip: Your Texas taxpayer number appears in the Taxable Entity Search if you need to confirm your account details before filing.
Step 2: What replaced the old No Tax Due Report
If you filed a Texas franchise tax return before 2024, you may remember a form called the No Tax Due Report (Form 05-163). LLCs below the threshold used to file this form alongside the Public Information Report each year.
That form no longer exists. The Texas Comptroller discontinued the No Tax Due Report in 2024. LLCs below the no-tax-due threshold no longer file any franchise tax computation form at all.
What you file now if you're below $2,650,000:
| Before 2024 | 2024 and after |
|---|---|
| No Tax Due Report (05-163) + PIR (05-102) | PIR (05-102) only |
If your LLC's revenue is below the threshold, your only annual filing obligation to the Comptroller is the Public Information Report. No computation. No tax form. Just the PIR.
Common mistake: LLC owners who filed a No Tax Due Report in prior years sometimes assume they need to keep doing so. If you receive a WebFile notice for the current year and try to file the old form, the system will redirect you. Just file the PIR directly.
Step 3: File the Public Information Report by May 15
The Public Information Report (Form 05-102) is the filing that keeps your LLC in good standing with the Comptroller when no franchise tax is owed. It's free to file and takes about 10 minutes through WebFile.
What you need before you log in:
- Your Texas taxpayer number (11-digit number from the Comptroller — different from your federal EIN)
- Your WebFile Access Code (mailed to your registered agent's address annually; request a replacement at the Comptroller's website if lost)
- Your LLC's principal office address
- Registered agent name and current address
- Names and addresses of all members, managers, or officers as of the filing date
Filing steps:
- Go to comptroller.texas.gov/taxes/franchise/ and click "File and Pay Franchise Tax."
- Log in to WebFile using your credentials (or create a new account with your taxpayer number and WebFile Access Code).
- When prompted to select your filing type, select the Public Information Report.
- Complete all required fields: principal office, registered agent, and officer/member information.
- Review and submit. There is no payment required.
- Save your confirmation number as proof of timely filing.
Why the PIR matters beyond paperwork: The PIR forwards your LLC's ownership and registered agent information to the Texas Secretary of State. Failing to file a complete and signed PIR triggers forfeiture of entity privileges under Texas Tax Code §§ 171.251, 171.252, and 171.255 — even if you owe $0 in franchise tax. Officers and members can then be held personally liable for the LLC's debts.
For a full field-by-field breakdown, see our Texas Public Information Report guide.
Step 4: Verify your filing was accepted
After submitting the PIR, check your account status within 24–48 hours to confirm everything processed correctly.
- Visit the Taxable Entity Search.
- Search by your LLC name or taxpayer number.
- Confirm your account status shows Active with no delinquent report years listed.
If you see a delinquent report year after 48 hours, contact the Comptroller's Franchise Tax division at 1-800-252-1381. Processing delays are common in April and May.
This should take about 5 minutes. Keep a screenshot of the Active status as an additional record alongside your confirmation number.
Quick reference
| Detail | Info |
|---|---|
| What | Public Information Report (when revenue is below the no-tax-due threshold) |
| Who | All Texas LLCs with annualized total revenue under $2,650,000 |
| When | May 15 annually |
| Where | comptroller.texas.gov/taxes/franchise/ |
| Form | 05-102 (Public Information Report) |
| Cost | Free |
| No Tax Due Report | Discontinued in 2024 — no longer filed |
| Penalty for not filing | $50 + potential LLC forfeiture |
| Consequence of forfeiture | Members and officers personally liable for entity debts |
FAQ
Do I still have to file if I owe no Texas franchise tax?
Yes. Every Texas LLC must file an annual report with the Comptroller by May 15, regardless of how much tax is owed. If your revenue is below the $2,650,000 threshold, you file only the Public Information Report (Form 05-102). Skipping it triggers a $50 penalty and can lead to forfeiture of your LLC's right to operate in Texas.
What is the Texas franchise tax no-tax-due threshold in 2026?
For the 2026 report year, the no-tax-due threshold is $2,650,000 in annualized total revenue. If your LLC's total revenue falls below this amount, you owe $0 in franchise tax. This threshold is adjusted periodically by the Comptroller, so check comptroller.texas.gov each year to confirm the current figure.
What happened to the No Tax Due Report form in Texas?
The Texas Comptroller discontinued the No Tax Due Report (Form 05-163) in 2024. LLCs that used to file this form no longer need to file any franchise tax computation form when their revenue is below the threshold. The only required filing is the Public Information Report (Form 05-102) by May 15.
What form does a Texas LLC file when no franchise tax is due?
If your LLC's annualized revenue is below $2,650,000, file only the Public Information Report (Form 05-102) by May 15. No tax computation form is required. The PIR is filed for free through WebFile at comptroller.texas.gov/taxes/franchise/. This changed in 2024 when the old No Tax Due Report form was retired.
What is the penalty for not filing when my Texas franchise tax is zero?
Failing to file the Public Information Report by May 15 triggers a $50 penalty even when you owe $0 in franchise tax. If the Comptroller eventually forfeits your LLC, members and officers can become personally liable for the entity's debts under Texas Tax Code §§ 171.251–171.255. See our guide on what to do if you receive a Texas LLC forfeiture notice if you've already missed a deadline.
Not sure what else your Texas LLC owes?
Most business owners are surprised by how many filing obligations they have. Ortholo's free compliance checker shows you everything you owe, when it's due, and what happens if you miss it — personalized to your entity.
Last verified: 2026-05-07
Sources: Texas Comptroller — Franchise Tax | Texas Comptroller — PIR/OIR Filing Requirements | Texas Tax Code §§ 171.251–171.255