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Tag: Tax Penalties
0.375 % vs 0.75 %: Which Texas Franchise-Tax Rate Applies to You?
Introduction Texas imposes two different franchise-tax rates—0.375 % and 0.75 %—depending on whether your business is primarily engaged in retail or wholesale trade. Getting the rate wrong can lead to under-payment penalties or over-paying unnecessarily. This guide will help you determine which rate applies, illustrate with examples, and walk you through how to report the […]
New $2.47 M “No-Tax-Due” Threshold Explained (and Who Still Files)
New $2.47 M “No-Tax-Due” Beginning with report years due on or after January 1, 2024, Texas more than doubled its “no-tax-due” threshold—raising it from $1.23 million to $2.47 million. This change, enacted by Senate Bill 3, relieves smaller businesses from owing any franchise tax, but it does not eliminate their filing obligations entirely. In this […]