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Texas Comptroller Changes ‘No Tax Due’ Reporting for 2024

The Texas Comptroller of Public Accounts recently announced that effective for reports due in 2024, taxable entities formed in Texas, or doing business in Texas, with total revenue that is less than or equal to $2.47 million (the “No Tax Due” threshold for 2024 and 2025), are no longer required to file a Franchise Tax Report (also known as a “No Tax Due” Report).

January 09, 2024

The term “franchise tax” may be confusing for business owners, especially if their business is not a franchise. Franchise Tax is a privilege tax imposed on each taxable entity and a “franchise” is the right granted to an entity to market their goods or services.

Historically, each taxable entity was required to file a Franchise Tax Report to the Texas Comptroller by the annual May 15 deadline. If a business entity’s sales were less than or equal to the “No Tax Due” threshold, including those with $0 in sales, the Franchise Tax Report was still required to be filed. This has often been overlooked by business owners, resulting in a $50 penalty for a report filed after the due date.

The Texas Comptroller is discontinuing the No Tax Due Report (Form 05-163), a form required to be filed electronically online since 2016, for the 2024 report year and beyond. The form will not be available for any new reporting periods either. Although entities under the threshold will no longer face this requirement, they are still required to file a Public Information Report (Form 05-102) or Ownership Information Report (Form 05-167). It is important to remember that these changes are only effective for 2024 and beyond so entities are not off the hook for franchise tax reporting for 2023 and earlier.

There is a caveat, though. A qualifying new veteran-owned business is not required to file a No Tax Due Report, a Public Information Report, or an Ownership Information Report for the initial five-year period that it qualifies as a new veteran-owned business.

This article is intended as a general guide and does not substitute for accounting or legal advice. Business owners are advised to consult with accountants and attorneys, as needed.

“Business Tips” was written by Angelina Osornio Torres, Certified Business Advisor of Angelo State University’s Small Business Development Center. For more information on the topic of this article or the services of the ASU · SBDC, contact her at