Texas has no individual or corporate income tax, but every taxable entity doing business in the state must file an annual Texas Franchise Tax report under Texas Tax Code Chapter 171. ¹ For 2024 and beyond, the no-tax-due threshold sits at $2.47 million in total revenue, raised from $1.23 million under HB 1058 (88th Legislature, 2023). The change exempts approximately 67,000 additional small businesses from franchise tax liability, but every entity must still file a Public Information Report or Ownership Information Report.

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