If you live in Texas, filing your taxes means filing a federal return with the IRS — the state does not collect personal income tax. Business owners have an extra step: a Texas franchise tax report filed with the Comptroller. Homeowners deal with property taxes at the county level. Here is how to file taxes in Texas, deadline by deadline, with the penalties that apply if you miss one.
The Texas Constitution prohibits the legislature from taxing individual income, including a person’s share of partnership or unincorporated association income.1State of Texas. Texas Constitution Article 8 – Taxation and Revenue So no state return, no state withholding line, no state refund. What you do owe is federal income tax, and depending on what you do, franchise tax, sales tax, and property tax.
Deadlines to Know for 2026
- April 15, 2026: Federal Form 1040 and any tax owed for the 2025 tax year.2Internal Revenue Service. IRS Announces First Day of 2026 Filing Season
- May 1, 2026: Residence homestead exemption application with your county appraisal district.3Texas Comptroller. Property Tax Exemptions
- May 15, 2026: Texas franchise tax reports, Public Information Reports, and Ownership Information Reports.4Texas Comptroller. Franchise Tax
- May 15, 2026 (or 30 days after your appraisal notice, whichever is later): Property tax appraisal protest deadline.5Texas Comptroller. Appraisal Protests and Appeals
- October 15, 2026: Extended federal filing deadline if you filed Form 4868 by April 15.
Filing Your Federal Return
Documents to Pull Together
You’ll need a Social Security Number or Individual Taxpayer Identification Number for yourself, your spouse if filing jointly, and any dependents.6Internal Revenue Service. Topic No. 857, Individual Taxpayer Identification Number (ITIN) Then your income forms:
- Form W-2 from each employer, sent by the end of January, showing wages and federal tax withheld.
- Form 1099-NEC for freelance or contract payments of $600 or more.
- Forms 1099-INT and 1099-DIV for interest and dividend income from banks and brokerages.
If you plan to itemize, gather Form 1098 for mortgage interest, receipts for medical expenses, charitable donation records, and documentation of state and local taxes other than income tax. Most Texas filers end up taking the standard deduction instead. For 2025 returns filed in 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.7Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 Unless your itemized total exceeds that, the standard deduction gives you a larger break with far less paperwork.
Everything flows onto Form 1040, the main individual return.8Internal Revenue Service. About Form 1040, U.S. Individual Income Tax Return
E-File or Paper
E-filing through IRS-approved tax software is the fastest route. The system confirms receipt immediately and refunds process more quickly than paper.9Internal Revenue Service. Modernized e-File (MeF) Overview If your adjusted gross income was $89,000 or less in 2025, IRS Free File gives you guided tax preparation software at no cost.10Internal Revenue Service. 2026 Tax Filing Season Opens With Several Free Filing Options Available Above that income threshold, Free File Fillable Forms provide an electronic version of the paper forms without the step-by-step walkthrough.
If you file on paper, the IRS address depends on whether you’re enclosing a payment. Texas returns without a payment go to the IRS in Austin, TX 73301-0002. Returns with a payment go to the IRS at P.O. Box 1214, Charlotte, NC 28201-1214.11Internal Revenue Service. Where to File Addresses for Taxpayers and Tax Professionals Filing Form 1040 Send paper returns by certified mail with a return receipt so you have proof of the filing date.
Once your return is in, the IRS “Where’s My Refund?” tool tracks it. You’ll need your SSN or ITIN, filing status, and the exact refund amount shown on your return.12Internal Revenue Service. Refunds
Extensions and Late Penalties
Filing Form 4868 by April 15 gives you an automatic six-month extension to October 15, 2026.13Internal Revenue Service. Application for Automatic Extension of Time to File U.S. Individual Income Tax Return The extension buys you time to file, not time to pay. Interest starts accruing on any unpaid balance after April 15.
Miss the deadline without an extension and the failure-to-file penalty is 5% of the unpaid tax for each month or partial month the return is late, up to 25%.14Internal Revenue Service. Failure to File Penalty If the return is more than 60 days late, the minimum penalty is $525 or 100% of the unpaid tax, whichever is less. On top of that, a failure-to-pay penalty of 0.5% per month applies to any balance due, also capped at 25%.15Internal Revenue Service. Topic No. 653, IRS Notices and Bills, Penalties and Interest Charges They stack. Filing late while owing money gets expensive quickly.
Texas Franchise Tax for Business Owners
The franchise tax is the main state tax for businesses in Texas. It applies to corporations, LLCs, partnerships, and most other entities organized in Texas or doing business here.4Texas Comptroller. Franchise Tax Sole proprietorships and general partnerships owned entirely by natural persons are generally exempt.
Who Actually Owes
For the 2026 report year, an entity with annualized total revenue at or below $2.65 million owes no franchise tax. You do not need to file a No Tax Due Report, but you still have to file a Public Information Report (Form 05-102) or an Ownership Information Report (Form 05-167) to keep your entity in good standing.16Texas Comptroller. Texas Franchise Tax Report Forms for 2026 Skipping the PIR or OIR can cost your entity the right to transact business in Texas even if you owe zero tax.17Comptroller of Public Accounts. Texas Franchise Tax Public Information Report and Ownership Information Report
Entities above the threshold calculate tax one of three ways:4Texas Comptroller. Franchise Tax
- EZ Computation (Form 05-169), available at $20 million or less in annualized total revenue, taxed at 0.331% of total revenue.
- Long Form at 0.375% of taxable margin for entities primarily in retail or wholesale trade.
- Long Form at 0.75% of taxable margin for all other entities.
Filing, Extensions, and Late Penalties
Reports are filed through the Comptroller’s Webfile portal, which also handles sales tax returns and other state tax filings.18Texas Comptroller. File and Pay You’ll need your Webfile number, an XT number printed on Comptroller franchise tax notices. Lost it? Call 1-800-442-3453 and verify information from a previously filed report.19Texas Comptroller of Public Accounts. Requesting Tax Certificates and Tax Clearance Letters Entities that paid $500,000 or more in a specific tax during the previous state fiscal year must pay through TEXNET.
If May 15 is too soon, request an extension through Webfile or file Form 05-164 by that date. For most entities, the extension moves the deadline to November 15. You have to pay at least 90% of the tax due with the extension request, or 100% of what you reported on the prior year’s return.20Texas Comptroller. Franchise Tax Extensions of Time to File Entities required to pay by electronic funds transfer get a first extension to August 15 and can request a second to November 15.
A late franchise tax report triggers a 5% penalty on the tax due, with another 5% added if the tax is still unpaid 30 days after the due date. Interest begins accruing 60 days after the due date at the prime rate plus one percent.21LII / Legal Information Institute. 34 Texas Admin Code 3.584 – Margin: Reports and Payments
Sales Tax Is a Separate Permit
Franchise tax is not sales tax. If your business sells, leases, or rents taxable goods, provides taxable services, or buys taxable items from out-of-state suppliers without a Texas permit, you need a Texas Sales and Use Tax Permit before collecting any tax.22Texas Comptroller – Texas.gov. Sales Tax Permit Requirements The permit is free and you apply through the Comptroller’s website. You then collect the state’s 6.25% rate plus any local tax (up to 2% more, for a combined cap of 8.25%) and remit on a monthly, quarterly, or annual schedule based on volume.23Texas Comptroller. Sales and Use Tax
Property Taxes and Homeowner Deadlines
Property tax is handled locally, not at the state level. School districts, cities, counties, and special districts each set their own rates, and effective rates typically fall between roughly 0.6% and 1.7% of assessed value depending on the county.
County appraisal districts set the market value of taxable property as of January 1 each year, using sales comparisons, income analysis, or replacement cost, and must reappraise each property at least once every three years.24Texas Comptroller of Public Accounts. Texas Property Tax Basics
Homestead Exemption
If the home is your primary residence, file for a homestead exemption to reduce the taxable value. School districts must provide a $140,000 exemption on residence homesteads, and cities and counties may add their own. You have to own the home, use it as your principal residence, and not claim a homestead exemption on any other property. File with your county appraisal district before May 1.3Texas Comptroller. Property Tax Exemptions
Protesting Your Appraisal
If the appraised value looks too high, file a protest with the county’s appraisal review board. The deadline is May 15 or 30 days after the appraisal district mails your notice, whichever is later.5Texas Comptroller. Appraisal Protests and Appeals For homesteads appraised higher than the previous year, the district must send that notice by April 1. You don’t need a lawyer; the appraisal district provides the forms, and a successful protest can save hundreds or thousands of dollars a year.