The Texas insurance premium tax is an annual levy on gross premiums that every insurer collecting on Texas risks owes to the Texas Comptroller. Rates run from 0.75% for life carriers to 4.85% for surplus lines, with most property and casualty companies at 1.6%. Annual returns are due March 1, and any insurer whose prior-year liability topped $1,000 must also make semi-annual prepayments on March 1 and August 1.
Rates by Insurer Type
The rate that applies depends on what kind of insurer you are and what coverage you write. The percentage is applied to gross premiums or gross revenues collected during the calendar year.
- Property and casualty insurers: 1.6% of taxable premium receipts.1State of Texas. Texas Insurance Code INS 221.002 – Tax Imposed Rate
- Life insurance carriers: 0.75% of total direct premium receipts.2State of Texas. Texas Insurance Code Chapter 222 – Tax Rates
- Health maintenance organizations: 0.875% of total direct premium receipts, or 0.45% for nonprofit HMOs organized under Chapter 843.2State of Texas. Texas Insurance Code Chapter 222 – Tax Rates
- Title insurance companies: 1.35% of taxable premiums, including premiums retained by title agents.3State of Texas. Texas Insurance Code 223.003 – Tax Imposed
- Surplus lines: 4.85% of gross premiums charged for the coverage.4Texas Comptroller of Public Accounts. Insurance Premium Tax (Surplus Lines/Purchasing Groups)
Chapter 222 of the Insurance Code sweeps in nearly every kind of carrier writing Texas risks: property and casualty, life, health and accident, title, HMOs, and captives, whether domiciled in Texas or another state.5State of Texas. Texas Insurance Code Chapter 222 – Tax Imposed on Certain Insurers
What Counts as Taxable Premium
The rate applies to gross premiums before most business expenses, but the base is not literally every dollar collected. Returned premiums and dividends paid to policyholders come out of the taxable base. Premiums received from another authorized insurer for reinsurance are also excluded. What you cannot do is deduct premiums you pay out for reinsurance.1State of Texas. Texas Insurance Code INS 221.002 – Tax Imposed Rate
Credits That Reduce the Tax
Two credits directly reduce the tax owed rather than the premium base.
The examination fee credit lets an insurer offset premium tax by the examination fees paid to the Texas Department of Insurance during the same tax year. Fees paid to other states and examination expenses incurred outside Texas do not qualify, and the credit cannot be carried between tax years.6State of Texas. Texas Insurance Code INS 803.007 – Credits and Offsets
The certified capital company (CAPCO) credit equals 100% of an insurer’s qualified investment in a certified capital company. Only insurers that owe Texas premium tax can purchase these instruments.7Texas Comptroller of Public Accounts. The Texas Certified Capital Company Program
Maintenance Taxes and Other Assessments
Premium tax is not the only charge. Maintenance taxes and surcharges funding the Texas Department of Insurance, the Office of Public Insurance Counsel, and the Division of Workers’ Compensation ride alongside the premium tax and are reported on Form 25-102. They are calculated as an additional rate per dollar of premium.
For 2026, the maintenance rates include:
- Fire and allied lines: 0.00136
- Casualty and fidelity: 0.00032
- Motor vehicle: 0.00038
- Accident and health: 0.00035
- Life and annuities: 0.00035
- Title companies: 0.00067
- Workers’ compensation surcharge: 0.00074, plus a separate Division of Workers’ Compensation surcharge of 0.02
Every line of insurance also owes an Office of Public Insurance Counsel assessment of 0.057 per dollar of premium. HMOs pay per-enrollee instead: $0.92 for basic health care services and $0.31 for single or limited health care services.8Texas Comptroller of Public Accounts. Insurance Maintenance Tax Rates, Surcharges, Fees and Assessments Small numbers, but they add up on a large book.
Retaliatory Tax on Out-of-State Insurers
Foreign insurers face a possible retaliatory charge on top of the base premium tax. If the insurer’s home state imposes a heavier total burden on Texas-domiciled insurers than Texas imposes on that state’s insurers, Texas collects the difference. The calculation compares taxes, fees, license charges, and other costs on both sides, and foreign insurers report it on Form 25-102 with their maintenance tax filing.9Texas Comptroller of Public Accounts. Texas Insurance Tax Forms For an insurer domiciled in a high-tax state, the retaliatory addition can materially change what entering Texas actually costs.
Forms and Deadlines
Every licensed insurer, including reinsurers and HMOs, files Form 25-100 for annual premium tax. A report is required even in a year when no tax is due.10Texas Comptroller of Public Accounts. Form 25-100 – Texas Annual Insurance Premium Tax Report Form 25-101 handles semi-annual prepayments. Form 25-102 covers maintenance taxes, assessments, and the retaliatory tax calculation. All three are on the Comptroller’s site.9Texas Comptroller of Public Accounts. Texas Insurance Tax Forms
The annual report and payment are due March 1 after the close of the calendar year.11Texas Comptroller of Public Accounts. Insurance Premium Tax (Licensed Insurers) Any insurer whose net premium tax liability for the previous year exceeded $1,000 must make semi-annual prepayments on March 1 and August 1.12Cornell Law Institute. 34 Texas Admin Code 3.809 – Due Dates, Penalty and Interest That threshold catches most active insurers.
How to File and Pay
Filing method and accepted payment channels depend on how much premium tax the insurer paid during the prior state fiscal year (September 1 through August 31). The Comptroller uses four tiers:11Texas Comptroller of Public Accounts. Insurance Premium Tax (Licensed Insurers)
- Less than $10,000: file via Webfile or paper; pay by EFT, credit card through Webfile, TEXNET, or check.
- $10,000 to $49,999: file via Webfile or paper; pay by EFT, credit card through Webfile, or TEXNET. Checks are not accepted.
- $50,000 to $499,999: Webfile only for reporting; pay by EFT, credit card through Webfile, or TEXNET.
- $500,000 or more: Webfile only for reporting, TEXNET only for payment.13Texas Comptroller of Public Accounts. File and Pay
Webfile issues a confirmation number on submission that serves as proof of filing.
Penalties for Late Payment
A payment made within 30 days of the due date carries a 5% penalty. After 30 days, the penalty rises to 10%.11Texas Comptroller of Public Accounts. Insurance Premium Tax (Licensed Insurers)
Surplus Lines and the Home-State Rule
Surplus lines agents placing coverage with non-admitted insurers report and pay Texas premium tax when Texas is the insured’s home state, collecting it from the insured at policy delivery.14State of Texas. Texas Insurance Code 225.006 – Collection of Tax by Agent Under the federal Nonadmitted and Reinsurance Reform Act of 2010, only the insured’s home state may tax a surplus lines policy; no other state where the risk sits may impose its own tax on the same coverage. The home state is where the insured maintains its principal place of business, or for an individual, principal residence; for affiliated group policies, it is the state tied to the group member with the largest share of premium. Texas surplus lines agents must file annual allocation reports showing what portion of premium is attributable to each state.