Texas franchise tax Form 05-158-A is the annual report that corporations, LLCs, partnerships, professional associations, and other taxable entities file with the Texas Comptroller of Public Accounts to report total revenue and calculate franchise tax. It is due May 15 each year. To complete it, you enter the entity’s identifying information, report total revenue, subtract the highest allowable deduction to arrive at taxable margin, apply the tax rate for your business type, and submit through the Comptroller’s Webfile system or by mail.
Who Files Form 05-158-A
Nearly every entity formed in Texas or doing business in the state files a franchise tax report. Corporations, LLCs, limited partnerships, professional associations, and business trusts all fall within the tax’s reach. Sole proprietorships and general partnerships owned entirely by natural persons are the main exceptions and do not file this form.
One boundary worth flagging before you start: if your entity’s total revenue is at or below $2,650,000 for the 2026 report year, you owe no franchise tax and typically file the No Tax Due Report (Form 05-163) instead of Form 05-158-A, along with your Public Information Report or Ownership Information Report.1Texas Comptroller of Public Accounts. Franchise Tax Skipping the filing entirely is not an option; the Comptroller treats a missing report the same as a delinquent one.
Completing the Header
The top of the form collects identifying information. Enter your 11-digit Texas Taxpayer Number without dashes or spaces.2Texas Comptroller of Public Accounts. Qualified Research Exemption – Identify Taxpayer Write the entity’s full legal name exactly as it appears in the Secretary of State’s records. Small discrepancies delay processing, so if the official name spells out “Corporation,” do not abbreviate it as “Corp.” Fill in the mailing address and blacken the circle next to the address field if it has changed since your last report.
Below the identifying fields, mark the report year and the classification circles that apply to your entity. Blacken the combined report circle if the entity files as part of a combined group. Mark the Tiered Partnership Election circle if total revenue was adjusted under that election. Enter the Secretary of State file number or Comptroller file number, then identify the entity type: corporation, LLC, professional association, limited partnership, or financial institution. Passive entities and REITs each have their own indicator circle.3Texas Comptroller of Public Accounts. Form 05-158-A – Texas Franchise Tax Annual Report
Calculating Tax on the Body of the Form
The body of the form walks from revenue down to tax due. Report gross revenue, then subtract the highest of three deductions to arrive at taxable margin: cost of goods sold, compensation, or 30 percent of total revenue. The compensation deduction for 2026 is capped at $480,000.4Texas Comptroller of Public Accounts. 2026 Texas Franchise Tax Report Information and Instructions
Apply the rate that matches your business type. Retail and wholesale entities pay a lower rate than other entities. The exact rates for each report year appear on the Comptroller’s franchise tax forms page and in the instructions accompanying the form.1Texas Comptroller of Public Accounts. Franchise Tax Enter the result as tax due. If you have credits, such as the research and development credit, apply them to reduce the final amount. The 2026 instructions (Form 05-915) explain each line in detail.
Submitting the Report
Webfile is the fastest way to file. You access it through the Comptroller’s website using your Webfile (XT) number, and filing online generates an immediate confirmation that serves as proof of timely submission.5Texas Comptroller of Public Accounts. Create a Webfile Account Step-by-Step
Some entities must pay electronically. If you paid $10,000 or more in franchise tax during the prior state fiscal year, electronic payment through Webfile or TEXNET is required.6Texas Comptroller of Public Accounts. TEXNET and Electronic Payment of Taxes and Fees Above $500,000, you must specifically use TEXNET.
If you are not required to pay electronically, mail the completed form with a check or money order. The address is printed on the form; the Comptroller’s franchise tax mailing address is P.O. Box 149348, Austin, TX 78714-9348.7Texas Comptroller of Public Accounts. Form 05-164 – 2026 Texas Franchise Tax Extension Request The postmark date counts as the filing date, so certified mail gives you documented proof.
Requesting an Extension
If May 15 will not work, you can extend by filing Form 05-164 (Texas Franchise Tax Extension Request) or by making an extension payment through Webfile. If you pay online, do not also mail a paper Form 05-164; the online payment itself is the extension request.8Texas Comptroller of Public Accounts. Franchise Tax Extensions of Time to File
The extension payment has to hit one of two marks: at least 90 percent of the tax that will be due on the report you eventually file, or 100 percent of the tax reported for the prior year, provided that prior report was filed on or before May 14.9State of Texas. Texas Tax Code TAX 171.202 – Annual Report If the prior year’s report was not filed by May 14, only the 90 percent option is available. A valid extension moves the deadline to November 15 for entities not required to pay by EFT. One trap for former combined-group members: an entity that was part of a combined report in the prior year cannot use the 100 percent option and must use the 90 percent method.8Texas Comptroller of Public Accounts. Franchise Tax Extensions of Time to File
What Happens if You File Late
A late Form 05-158-A draws a $50 penalty per report, no matter how much tax is owed.1Texas Comptroller of Public Accounts. Franchise Tax Tax paid 1 to 30 days after the due date carries a 5 percent penalty. Tax paid more than 30 days late carries 10 percent. The two do not stack.10Texas Comptroller of Public Accounts. Penalties for Past Due Taxes
Interest on unpaid tax begins accruing 61 days after the due date at prime plus one percent annually. For 2026 that rate is 7.75 percent.11Texas Comptroller of Public Accounts. Interest Owed and Earned
Ignoring the report long enough brings a harsher consequence. The Comptroller mails a notice of forfeiture, and if the entity does not file and pay within 45 days, its corporate privileges are forfeited.12State of Texas. Texas Tax Code TAX 171.251 A forfeited entity loses the right to transact business in Texas and cannot sue in state court. Paying all delinquent taxes and filing the missing reports reinstates privileges retroactively, but cleaning up a forfeiture is far more expensive and disruptive than filing on time, especially if the entity needs to enforce a contract or defend a lawsuit while its status is in limbo.