Texas sales tax and franchise tax, filed on time

Texas sales and use tax

If you sell taxable goods or services in Texas, you need a sales and use tax permit from the Texas Comptroller before you start selling. The state rate is 6.25%, and cities, counties and special districts can add up to 2%, for a combined rate of up to 8.25%.

• The Comptroller assigns you a filing frequency — monthly, quarterly or yearly — based on how much tax you collect
• Returns are generally due on the 20th day of the month after the reporting period
• You file a return for every period, even one with no sales
• Use tax applies to taxable items you buy without paying Texas sales tax, for example from an out-of-state seller

Texas franchise tax

Most entities with liability protection — LLCs, corporations, limited partnerships — owe a franchise tax report to the Comptroller each year, due May 15. Sole proprietorships and general partnerships owned directly by individuals generally do not.

Businesses with revenue at or below the no-tax-due threshold, which the Comptroller adjusts every two years, owe no franchise tax but still file a Public Information Report (corporations and LLCs) or an Ownership Information Report (other entities). Businesses above the threshold calculate the tax on their margin.

What we do

• Register you for a sales tax permit and confirm your filing frequency
• Reconcile taxable sales from your point-of-sale or invoicing system to the return
• File sales and use tax returns on time, every period
• Prepare the franchise tax report and the Public or Ownership Information Report
• Answer notices from the Comptroller

Questions