How to Fill Out and File Form 05-164: Texas Franchise Tax Extension

To request more time on your Texas franchise tax report, file Form 05-164, the Texas franchise tax extension request, with the Comptroller of Public Accounts by May 15 along with a qualifying payment. Do that correctly and your report deadline moves to November 15 for most entities. The extension is tentative until the Comptroller confirms the payment meets one of the safe harbor amounts in Texas Tax Code Section 171.202.

Who Files Form 05-164

Every taxable entity formed or organized in Texas, or doing business in the state, owes a franchise tax report each year. That covers corporations, LLCs, limited partnerships, professional associations, business trusts, and most other liability-shielded structures. Sole proprietorships and general partnerships owned entirely by natural persons are the main exceptions.

Even if you owe zero tax, you still have a filing obligation. For 2026, entities with total annualized revenue at or below the $2,650,000 no-tax-due threshold still have to file a Public Information Report or Ownership Information Report by the deadline, and the extension request applies to those information reports too. Your extension payment in that case is zero, but you still need to submit the form or an online extension request to get the extra time.¹

How Much to Pay With the Extension

This is where most filers get into trouble. Section 171.202 gives you two safe harbors, and you have to satisfy at least one or penalties start running:

100 percent of prior-year tax. Pay the full amount of tax reported as due on last year’s report, provided that report was filed on or before May 14.
90 percent of current-year tax. Pay at least 90 percent of the tax that will be due on the report you eventually file by the extended deadline.

The prior-year option is usually easier because the number already exists. The catch: if last year’s report wasn’t filed by May 14, that option is off the table and you have to estimate under the 90-percent method.²

If your previous return was an initial report, calculate the 100-percent figure by multiplying the taxable margin from that initial report by the applicable rate: 0.375 percent for retail and wholesale, 0.75 percent for everyone else.³

Completing the Form

Form 05-164 is a single page. The fields you fill in:

Taxpayer number. Your 11-digit Texas Taxpayer Number from the Comptroller. This is not your federal EIN, though the Comptroller’s account status search accepts either for lookups.⁴
Report year. The tax year you want extra time on.
Due date. Typically May 15 of the report year.
Taxpayer name and mailing address. Match the Comptroller’s records exactly. If the address has changed, enter the new one and darken the address-change circle.
Combined report indicator. If your entity files as part of a combined group, darken the circle and submit Form 05-165 with the extension request.⁵
Extension payment. The dollar figure from one of the two safe harbor methods.
Signature and date. Print or type the signer’s name and date the form.

One rule straight from the form itself: if you pay online through WebFile, do not also mail a paper 05-164. The Comptroller treats the online payment as the extension request, and sending both creates duplicate records.⁵

How to Submit It

Online Through WebFile

The fastest route. Register for an eSystems account, access WebFile from inside it, go to the franchise tax section, select the extension option, and submit the payment electronically. The system issues a confirmation when the transaction completes. Approved third-party software can also file the extension.⁶

By Mail

Mail the completed form with payment to:

Texas Comptroller of Public Accounts
P.O. Box 149348
Austin, TX 78714-9348⁵

The envelope has to be postmarked on or before the due date. A warning on timing: as of late 2025, USPS applies postmarks when mail reaches automated processing, not when the postal service first takes custody. That can mean a postmark one to three days after you dropped the envelope in a collection box, especially if you’re far from a regional processing center.⁷ To protect yourself, use certified mail or request a manual postmark at a post office counter. Filing online avoids the problem entirely.

The Deadline and How Much Time You Get

The annual report is due May 15. When May 15 lands on a weekend or holiday, the deadline shifts to the next business day.³ Your extension request and payment have to arrive or be postmarked by that same date.

For most entities, a valid extension pushes the filing deadline to November 15.² Six months of breathing room.

EFT Filers Need Two Extensions

If your entity paid $10,000 or more in franchise tax during the prior state fiscal year (September 1 through August 31), you’re an EFT filer, and the schedule works differently.⁸ Your first extension only moves the deadline to August 15.

To get from August 15 to November 15, file a second extension on or before August 15, and remit the difference between what you already paid and 100 percent of the tax that will be due on the final report. If the combined payments from both extensions reach at least 99 percent of the tax ultimately reported, penalties on any underpayment in the second extension are waived.² Note that for EFT purposes, the funds have to settle by the deadline, not just be initiated.

Penalties If You’re Late or Short

If the extension payment falls below the safe harbor amount, or the deadline slips, penalties come quickly:

$50 for each report filed after the due date.
5 percent of the unpaid tax if the payment is 1 to 30 days late.
10 percent of the unpaid tax if more than 30 days late.

Interest starts on the 61st day after the original due date at prime plus one percent.³ If you paid less than 90 percent by May 15, penalty and interest apply to whatever share of that 90 percent went unpaid. Any remaining balance not paid by the extended due date triggers additional penalties on that balance.¹ Even if you can’t pin down the exact tax yet, filing the extension with a reasonable payment keeps you in good standing while you finish the numbers.

1
Texas Comptroller of Public Accounts. Franchise Tax Extensions of Time to File
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State of Texas. Texas Tax Code TAX 171.202
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Texas Comptroller of Public Accounts. Franchise Tax
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Texas Comptroller of Public Accounts. Franchise Tax Account Status Search
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Texas Comptroller of Public Accounts. Form 05-164, 2026 Texas Franchise Tax Annual Report Extension Request
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Texas Comptroller of Public Accounts. Franchise Tax Frequently Asked Questions
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Taxpayer Advocate Service. New U.S. Postal Service Rules Could Affect Whether Your Tax Filing Is Considered On Time
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Texas Comptroller of Public Accounts. TEXNET and Electronic Payment of Taxes and Fees Definitions and Frequently Asked Questions