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A nonprofit corporation organized solely to promote the public interest of a city, county, town or other area within Texas is exempt from franchise tax.
The no tax due threshold is as follows: $1,230,000 for reports due in 2022-2023. $1,180,000 for reports due in 2020-2021. $1,130,000 for reports due in 2018-2019.
Non-Texas corporations must also include a copy of the corporations formation documents and a current Certificate of Existence issued by their state of incorporation. A nonprofit corporation organized solely to promote the public interest of a city, county, town or other area within Texas is exempt from franchise tax.
Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax.
Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state. All taxable entities must file completed franchise tax and information reports each year.
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Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax.
What is the Franchise Tax Accountability Questionnaire? The Comptroller sets up a franchise tax account for your business based on information provided from the Texas Secretary of State and other sources. The Franchise Tax Accountability Questionnaire allows you to update your entitys information with us online.
Tax Rates, Thresholds and Deduction Limits ItemAmountNo Tax Due Threshold$1,000,000Tax Rate (retail or wholesale)0.5%Tax Rate (other than retail or wholesale)1.0%Compensation Deduction Limit$320,0002 more rows

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