--- title: "The Texas No Tax Due Report: Do You Still Need to File It?" description: "Texas stopped requiring the No Tax Due Report for report year 2024 and later. See who files what instead for the 2026 report, including the $2.65 million..." url: https://wallacecpa.multisites.ai/blog/texas-no-tax-due-report publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- # The Texas No Tax Due Report: Do You Still Need to File It? No. The Texas Comptroller discontinued the No Tax Due Report for report year 2024 and later. An entity at or below the no tax due threshold still files a Public Information Report or an Ownership Information Report. The 2026 threshold is $2.65 million. Texas taxesPublished September 21, 20263 min read ## Do I still need to file a Texas No Tax Due Report? No. The Texas Comptroller states that the No Tax Due Report is not available for 2026 reports. For report year 2024 and later, the Comptroller discontinued it. The old Form 05-163 is not available for new reporting periods. This is a change for many small businesses. Before 2024, an entity under the threshold filed a No Tax Due Report each year. Now it files something different. ## What do I file instead? You file a Public Information Report (PIR) or an Ownership Information Report (OIR). The Comptroller says an entity with annualized total revenue at or below the no tax due threshold is not required to file a No Tax Due Report. It must still file one of those two reports. The Comptroller’s 2024 notice names the forms: Form 05-102 for the Public Information Report and Form 05-167 for the Ownership Information Report. Which one applies depends on the type of entity. Check the Comptroller’s instructions for yours. ## What is the no tax due threshold for the 2026 report? For the 2026 report, the threshold is $2.65 million of annualized total revenue, per the Comptroller’s 2026 forms page. The Comptroller’s franchise tax page shows $2,650,000 for report years 2026 and 2027. The number changes. The 2025 forms page used $2.47 million. Always confirm the threshold for the report year you are filing, and link back to the Comptroller page. Situation What the Comptroller says for the 2026 report Revenue at or below $2.65 million No Tax Due Report not required. File a PIR or OIR. Revenue above $2.65 million File the E-Z Computation Report or the Long Form. Passive entity File the E-Z Computation or Long Form. A PIR or OIR is not required. Qualifying new veteran-owned business No NTD report, PIR or OIR for its first five years. Above the threshold with zero Texas gross receipts File E-Z Computation or Long Form, plus a PIR or OIR. ## When is the report due? The annual franchise tax report is due May 15, according to the Comptroller. The 2026 reports were due May 15, 2026. Reports for the next year will have their own forms and threshold. Our [Texas franchise tax guide](https://wallacecpa.multisites.ai/guides/texas-franchise-tax) walks through the cycle. ## Why does revenue matter so much? Revenue decides which path you take. The threshold is measured on annualized total revenue, and a combined group looks at its group total. If the group total is at or below the threshold, the group is not required to file an Affiliate Schedule or Common Owner Information Report either. Each member organized in Texas or with Texas nexus still files a PIR or OIR. Clean books make the revenue figure easy to support. See [bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) for what to track. Our glossary also explains the [no tax due report](https://wallacecpa.multisites.ai/glossary/no-tax-due-report) and the [Texas franchise tax](https://wallacecpa.multisites.ai/glossary/texas-franchise-tax). ## What if I filed a No Tax Due Report in the past? You did the right thing for that year. The rule change applies to reports due on or after January 1, 2024. Look at your prior filings and your Comptroller account to see which report you owe now. A CPA can confirm this for your entity, especially if you have affiliates or a combined group. For wider context, read our pillar guide on [Texas business taxes](https://wallacecpa.multisites.ai/guides/texas-business-taxes). ## Why did the rule change? The legislature changed it. The Comptroller says that in July 2023 the legislature passed Senate Bill 3, which increased the no tax due threshold and eliminated reporting requirements for certain entities. The Comptroller then changed how some entities report. The effect is that fewer small entities file a report that says only “no tax due.” They file an information report instead. If you saw advice that tells you to file Form 05-163, it is out of date. Check the date on anything you read about this topic. ## Next step Wallace CPA handles [tax preparation](https://wallacecpa.multisites.ai/services/tax-preparation) for businesses. Call (877) 682-1171 or use the form at [/contact](https://wallacecpa.multisites.ai/contact) to confirm which franchise report your entity files. This post is general information, not advice for your situation. Talk to a CPA about your own situation before you file. ## Frequently asked questions ### What is the no tax due threshold for the 2026 report? The Texas Comptroller's 2026 forms page lists $2.65 million of annualized total revenue. The Comptroller's franchise tax page lists the threshold as $2,650,000 for report years 2026 and 2027. ### When is the annual franchise tax report due? The Comptroller says the annual franchise tax report is due May 15. ### Do new veteran-owned businesses file anything? The Comptroller says a qualifying new veteran-owned business does not file a No Tax Due Report, a PIR or an OIR during its initial five-year period. Qualification rules apply. ## Terms on this page - [Texas franchise tax](https://wallacecpa.multisites.ai/glossary/texas-franchise-tax) - [No tax due report](https://wallacecpa.multisites.ai/glossary/no-tax-due-report) - [Bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) ## Sources 1. [Texas Comptroller: Texas Franchise Tax Report Forms for 2026](https://comptroller.texas.gov/taxes/franchise/forms/2026-franchise.php) 2. [Texas Comptroller: No tax due reporting for report year 2024 and later](https://comptroller.texas.gov/taxes/franchise/ntd-rpt-updates-2024.php) 3. [Texas Comptroller: Franchise tax](https://comptroller.texas.gov/taxes/franchise/) Written by Wallace CPA and checked against the sources above on September 21, 2026. Tax rules and dates change, so check the linked page before you act. General information, not advice for your situation. ## Keep reading - [Texas business taxes, explained for small business ownersTexas has no state income tax, but a business can still owe several others. The main ones are the franchise tax, sales and use tax, property tax on business...](https://wallacecpa.multisites.ai/guides/texas-business-taxes) - [Texas franchise tax: who files, when, and what no tax due meansThe Texas franchise tax is a business tax on entities formed in or doing business in Texas. The report is due May 15 each year.](https://wallacecpa.multisites.ai/guides/texas-franchise-tax) - [How long to keep tax records, and which onesThe IRS says to keep records that support your tax return until the period of limitations runs out. For most returns that is 3 years.](https://wallacecpa.multisites.ai/guides/how-long-to-keep-tax-records) - [Got an IRS notice? How to read it and what to do firstRead the whole notice, find its CP or LTR number, and note the reply date. A CP2000 is a proposal to change your return, not a bill.](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do) - [IRS payment plans and offers in compromise: what each one isAn IRS payment plan lets you pay a tax bill over time. An offer in compromise asks the IRS to accept less than the full amount. The IRS decides each case.](https://wallacecpa.multisites.ai/guides/irs-payment-plans-and-offers-in-compromise) - [How to protest your property tax value in Tarrant and Denton countiesIn Tarrant and Denton counties, you protest your property value with your county appraisal district.](https://wallacecpa.multisites.ai/guides/property-tax-protest-tarrant-denton) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092