To change your NAICS code in Texas, notify the Texas Comptroller of Public Accounts through its eSystems online portal and, if you have employees, separately update the Texas Workforce Commission through its Unemployment Tax Services system. There is no filing fee. If you also file federal returns, hold a SAM.gov registration, or carry workers’ compensation or liability insurance, each of those needs its own update because none of them pull from the state filings automatically.
Pick the Right Code Before You File Anything
Use the U.S. Census Bureau’s NAICS search tool to look up codes by keyword. The 2022 NAICS manual is still the version in use; a 2027 revision is in development but has not been finalized as of early 2026.1U.S. Census Bureau. North American Industry Classification System – NAICS
Choose the code that matches the activity generating your highest percentage of gross receipts. If your business has shifted from retail to consulting, the code should reflect consulting even if some retail continues on the side. Read the full definition for any code you’re considering, not just the title. Two codes can sound similar and cover meaningfully different activities, and the wrong choice can raise your unemployment tax rate or shift your insurance classification.
Account Numbers and Dates to Have on Hand
Before you open any portal, gather:
- Your 11-digit Texas Taxpayer Number from the Comptroller.2Texas Comptroller. Identify Taxpayer – eSystems Help
- Your 9-digit Federal Employer Identification Number.2Texas Comptroller. Identify Taxpayer – eSystems Help
- Your 9-digit TWC Employer Account Number, if you have employees.3Texas Workforce Commission. Employers Guide to Wage Report and Payment File Specifications
- The date your business activity actually changed.
Both the Comptroller and TWC use the effective date to align their records historically, so estimating it or leaving it blank can cause problems with tax calculations that span the transition period.
Update the Texas Comptroller Through eSystems
Log in to your Webfile account through the Comptroller’s eSystems portal and use the secure messaging system to submit the change, including your new six-digit NAICS code and the effective date. Webfile is also reachable through the Comptroller’s franchise tax forms page, where account details can be managed online.4Texas Comptroller. Texas Franchise Tax Forms
For partnerships, associations, trusts, joint ventures, and railroad companies, the Comptroller uses Form AP-224, the Texas Business Questionnaire, which has a dedicated NAICS field.5Texas Comptroller. AP-224 Texas Business Questionnaire Paper forms go to the Comptroller of Public Accounts at P.O. Box 13528, Capitol Station, Austin, Texas 78711-3528.6Texas Comptroller. Locations and Hours Online submissions are processed faster than paper.
One caution: the Comptroller does not routinely audit NAICS codes for accuracy, and taxpayers self-assign the code when they apply for a sales tax permit.7Texas Comptroller. Sales Tax Receipts By NAICS Report A wrong code can sit in the system indefinitely without anyone flagging it. No one will catch the error for you, and the downstream effects on unemployment tax and insurance persist until you fix it.
Update the Texas Workforce Commission
If your business has employees, this update is not optional, and it arguably matters more than the Comptroller filing because the TWC uses your industry classification to help determine your unemployment tax rate. For 2026, the entry-level rate for new employers is 2.70%, but that rate varies by industry, and reclassification into a higher-risk sector can raise your contribution.
Log in to Unemployment Tax Services on the TWC website and go to the account maintenance section to submit an updated primary business activity and NAICS code. If the online system is unavailable, send a written notice by mail to the TWC’s Regulatory Integrity Division. Include your 9-digit employer account number, your FEIN, the new NAICS code, and the effective date.3Texas Workforce Commission. Employers Guide to Wage Report and Payment File Specifications
Processing the reclassification may trigger a re-evaluation of your unemployment tax rate. If the required contribution changes, the commission issues a Tax Rate Notice. Watch your portal account and your mail after submitting, so you can adjust withholding before the next quarterly filing.
Report the Change on Your Next Federal Return
The IRS has no standalone form for a NAICS code change. You report your principal business activity code each year on your return. Corporations enter the six-digit code on Form 1120, Schedule K, lines 2a through 2c, matching the activity that generates the highest total receipts.8Internal Revenue Service. Instructions for Form 1120 (2025) Sole proprietors report it on Schedule C. Partnerships use Form 1065.
If the change applies to a prior tax year you already filed, you would correct it by amending. For corporations that is Form 1120-X.8Internal Revenue Service. Instructions for Form 1120 (2025) In most cases, reporting the correct code on your next return is enough. The IRS uses these codes mainly for statistics and audit selection, so an outdated code from a prior year rarely creates a tax liability on its own. Consistently reporting a code that doesn’t match your income patterns, though, can draw audit attention.
Update SAM.gov If You Hold or Pursue Federal Contracts
If your Texas business is registered in the System for Award Management, update the NAICS code in your Entity Workspace. You can do this at any time, not only at annual renewal.9SAM.gov. Get Started with Registration and the Unique Entity ID
Check the size implications before you finalize. SBA size standards vary by NAICS code. Some industries measure “small” by number of employees, others by annual receipts, and thresholds differ significantly from one code to another.10eCFR. 13 CFR Part 121 – Small Business Size Regulations A business that qualifies as small under one code can exceed the size standard under another, and losing small business status means losing access to set-aside contracts, mentor-protégé programs, and SBA loan preferences.
Tell Your Insurance Carrier
State filings do not update your insurance records. Contact your workers’ compensation and commercial liability carriers separately, with the new classification code and the effective date, so they can adjust your policy prospectively.
Workers’ compensation carriers conduct periodic audits to verify that policy classifications match what employees actually do. A mismatch can lead the insurer to retroactively adjust your premiums. A business that shifted from office work to field operations, for example, would face a higher rate reflecting added risk. The adjustment runs the other way too: if you moved from a higher-risk industry to a lower-risk one and never updated your classification, you have been overpaying.
Order of Operations and Records to Keep
No single filing updates every agency at once. Notify the Comptroller, the TWC, the IRS on your next return, your insurance carrier, and SAM.gov if it applies. The most common mistake is updating one agency and assuming the others will follow.
A workable sequence:
- Start with the Texas Comptroller through eSystems.
- Handle the TWC next, because unemployment tax rate changes hit payroll costs quarterly.
- Update SAM.gov before the next federal solicitation you plan to bid on.
- Flag the change for your tax preparer so the correct code appears on your next federal return.
- Send the new classification and effective date to your insurance carrier.
Keep a record of every submission, including confirmation numbers from online portals and copies of any mailed correspondence. If a rate change or insurance adjustment comes through that you disagree with, documentation of when and how you reported the change gives you a starting point for any dispute.