Your web browser is out of date. Update your browser for more security, speed and the best experience on this site.

Update your browser

Finance Forward Blog

Texas No Tax Due Report Being Phased Out: Implications for Small Businesses

Texas No Tax Due Report

Texas businesses are on the brink of a positive shift in their franchise tax reporting obligations as the state discontinues the No Tax Due Report—a former requirement for businesses that fell under the franchise tax no tax due threshold. This shift signifies a change in the regulatory landscape, prompting an exploration of the implications of this report phase-out.

What Is the No Tax Due Report?

The No Tax Due Report has conventionally served as a filing requirement for Texas businesses despite having no franchise tax liability. It allowed business owners to inform the Texas Comptroller of Public Accounts that they owe no taxes for a specific reporting period. The decision to discontinue this report arises from an effort to streamline reporting procedures and alleviate unnecessary administrative burdens. This change may also be linked to the state's initiative to keep pace with annual adjustments for inflation and the cost of living, and possibly a strategic move to attract small businesses.

Key Implications for Small Businesses

The most significant change lies in the increased no tax due threshold for calculating franchise tax. With the new threshold set at $2.47 million in gross receipts before franchise tax calculations come into play, smaller businesses are poised to benefit from a reduction in financial strain and simplified reporting requirements.

1. Relief for Small Businesses: The heightened threshold provides smaller enterprises with a degree of relief, enabling them to operate without the encumbrance of franchise tax calculations until their gross receipts surpass the new threshold. This adjustment fosters a more conducive environment for the growth of small businesses in our state.

2. Simplified Reporting: The discontinuation of the No Tax Due Report for those entities under the $2.47 million no tax due threshold removes an additional layer of reporting requirements, granting businesses the freedom to concentrate on their core operations.


In conclusion, the phase-out of the No Tax Due Report marks a noteworthy transformation in Texas's tax reporting landscape. The increased franchise tax threshold and simplified reporting procedures offer a welcome reprieve for businesses, particularly smaller enterprises.
Need a second pair of eyes on your tax and accounting strategy? Take advantage of a free initial consultation call with our team.