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Texas Franchise Tax — Which Forms Should I File?

Who Must File

To confirm whether your business entity is subject to the franchise tax, review the list of taxable entities from our FAQs.

Filing Options

Franchise tax law provides these reporting options:


No Tax Due, Form 05-163

An entity that is not a member of a combined group can file Form 05-163 (No Tax Due) if any of the following is true:

  • The entity is a passive entity as defined in Chapter 171, Texas Tax Code;
  • The entity has $434,782 or less in total revenue, annualized* per 12-month period on which the report is based (TTC 171.002(d) specifies $300,000 or less, but the actual highest revenue when you take into account the E-Z computation and discounts is $434,782), ; or
  • The entity has zero Texas gross receipts.

  • NOTE: The No Tax Due report (Form 05-163) must be filed even though no tax payments are due. In addition, all entities filing Form 05-163, except passive entities, must also file the appropriate information report to meet filing requirements.
  • *For information on annualized revenue, see page 2 of the Franchise Tax Report Information and Instructions (2008 (PDF, 218k), 2009 (PDF, 375k)).
  • Tiered Partnerships: See page 19 of the Franchise Tax Report Information and Instructions (2008 (PDF, 218k), 2009 (PDF, 375k)).
  • Combined Groups: Combined groups may not file Form 05-163.

Access No Tax Due report forms in smart.pdf format or via WebFile (both require Adobe Reader version 8.1.1 or higher);
or in simple.pdf format.


E-Z Computation, Form 05-169

An entity, including a combined group, can file E-Z Computation if it has total revenue, annualized* per 12-month period on which the report is based, of $10 million or less.

Entities that file E-Z Computation are eligible for a tax discount if their total revenue, annualized per 12-month period on which the report is based, is less than $900,000.

However, taxable entities that file E-Z Computation may NOT:

  • take any economic development credits
  • take any temporary credits
  • carryover that year's credit for business loss carryforwards to a future period

  • NOTE: The E-Z Computation report (Form 05-169) must be filed even if the amount of total tax due is less than $1,000 and no tax is due. Exception: If the entity is a tiered partnership, the calculated amount of tax is due, even if it is less than $1,000. Entities filing Form 05-169 must also file the appropriate information report to meet filing requirements.
  • *For information on annualized revenue, see page 2 of the Franchise Tax Report Information and Instructions (2008 (PDF, 218k), 2009 (PDF, 375k)).
  • Tiered Partnerships: See page 24 of the Franchise Tax Report Information and Instructions (2008 (PDF, 218k), 2009 (PDF, 375k)).
  • Combined Groups: The reporting entity for a combined group using the E-Z Computation must also file Form 05-166 Texas Franchise Tax Affiliate Schedule listing each member of the combined group. (Form is included in each reporting packet.)

Access E-Z Computation report forms in smart.pdf format or via WebFile (both require Adobe Reader version 8.1.1 or higher);
or in simple.pdf format.


Long Form, Forms 05-158A and 05-158B

Any entity (including a combined group) that does not elect to file using the E-Z Computation or does not qualify to file a No Tax Due Information Report should file this report.

Entities filing the Long Form must also file the appropriate information report (see below) to meet filing requirements.

NOTE: The Long Form reports (Form 05-158A and 05-158B) must be filed even if the amount of total tax due is less than $1,000 and no tax is due. Exception: If the entity is a tiered partnership, the calculated amount of tax is due, even if it is less than $1,000.

Access Long Form report forms in smart.pdf format or via WebFile (both require Adobe Reader version 8.1.1 or higher);
or in simple.pdf format.


Information Report, Forms 05-102 or 05-167

Every taxable entity required to file a franchise tax report (whether they file No Tax Due, E-Z Computation or Long Form) must also file an information report. The only exception is passive entities, which are not required to file an information report.

Corporations and limited liability companies must file Form 05-102, the Public Information Report.

All other entity types must file Form 05-167, the Ownership Information Report.

Both forms are included with each reporting packet.

For additional help with Franchise forms, please view the Franchise Tax Report Information and Instructions (2008 (PDF, 218k), 2009 (PDF, 375k)) or the Franchise Tax Questions and Answers.