This guide is for Texas entities, foreign and multistate businesses (including Australian companies with Texas nexus), and anyone still finalising their numbers. A federal Form 7004 does not extend Texas obligations. Below: eligibility, 2026 deadlines, payment tests, completion steps, related forms, penalties and common mistakes. Confirm every date against the Texas Comptroller's current guidance before filing.
Key Takeaways
- The original report and extension request are due May 15, 2026.
- Non-EFT filers extend to November 16; EFT filers extend to August 17, then November 16.
- Pay at least 90% of 2026 tax, or 100% of prior-year tax, by May 15.
- Owing no tax does not remove the PIR or OIR requirement.
What Is Form 05-164 and Who Needs It?
What Form 05-164 does
Form 05-164 is the Texas Franchise Tax Extension Request. It asks for additional time to submit the franchise tax report, and it can also extend an information-only filing.
It does not replace the final report, calculate your liability, or extend any federal return. The request must be timely and accompanied by the required payment.
Who may need to file
Taxable entities organized or doing business in Texas owe franchise tax. That includes corporations, LLCs, partnerships and federally disregarded entities. Reporting exceptions still apply, so not every entity owes tax.
Foreign entities (those not organized in Texas) are assessed on nexus, which is entity-specific. Under the Comptroller's rule effective January 7, 2026, an entity with no physical presence creates nexus at $500,000 in Texas receipts per federal accounting period ending in 2019 or later.
Eligibility for the no-tax-due threshold uses annualized total revenue, not Texas receipts alone. These are separate tests.
What Form 05-164 is not
- 05-158: the long-form franchise tax report
- 05-169: the EZ Computation Report
- 05-102 and 05-167: the Public and Ownership Information Reports
- Federal Form 7004: covers specified federal business returns only
The comparison appears later in this article.
2026 Texas Franchise Tax Deadlines and Payment Rules
2026 filing calendar
When a deadline falls on a weekend or legal holiday, it moves to the next business day. That is why nominal August 15 and November 15 become August 17 and November 16 in 2026.
| Filer | Deadline | Procedure |
|---|---|---|
| Original report and request | May 15, 2026 | Webfile or Form 05-164, with qualifying payment |
| Non-EFT filer | November 16, 2026 | One extension; payment made with the May request |
| EFT first extension | August 17, 2026 | Pay electronically via Webfile or TEXNET, tax type code 13080 |
| EFT second extension | November 16, 2026 | Pay the balance by August 17 |
An EFT filer who paid all tax with the first extension must still request the second extension through Webfile or Form 05-164.
Extension payment requirements
You can satisfy the requirement in one of two ways:
- Pay at least 90% of the tax due with the 2026 report by May 15.
- Pay 100% of the tax reported on the prior-year report, if that report was filed on or before May 14, 2026.
Exceptions apply in these cases:
- Entities that became subject to franchise tax during 2025 cannot use the 100% option
- Affiliates included in a 2025 combined report that file separately in 2026 also cannot
- Entities at or below the 2025 no-tax-due threshold may use the 100% option with a zero-money request
The payment is an advance, not necessarily the final liability. Non-EFT remaining tax is due with the November 16 report.
Payment methods and federal extensions
Payment channels depend on the prior state fiscal year's franchise tax payments:
| Prior-year payments | Permitted methods |
|---|---|
| Under $10,000 | Webfile, TEXNET, approved providers or check |
| $10,000 to $499,999 | Webfile, approved providers or TEXNET |
| $500,000 or more | TEXNET only |
A federal extension on Form 7004 does not cover Texas. You still need a separate Texas request through Webfile or Form 05-164.
An insufficient payment invalidates a timely request. The due date reverts to May 15, and penalties and interest apply to the unpaid portions. A mandatory EFT filer without a valid first extension cannot obtain the second.
How to Complete and Submit Form 05-164
Prepare before opening the form
Gather these items:
- Legal entity name and Texas taxpayer number
- Report year and accounting period
- Prior-year Texas franchise tax report
- Current tax estimate and payment history
Confirm whether you are filing a franchise tax report, a PIR, an OIR, or more than one. Support your estimate with current books, federal return data, Texas apportionment information and the margin or EZ method. Follow the 2026 Comptroller instructions for calculation details.
Complete the current form
Use the 2026 version of the form. It asks for:
- Taxpayer number, name and mailing address (with an address-change indicator)
- Due date and report year, printed as 05/15/2026 and 2026
- A combined-report indicator
- Extension payment in dollars and cents
- Printed name, phone number, declaration and date
Combined groups must include the required attachment. Beyond that, attach only what the instructions require.
Submit and document the request
Online filing through Webfile or TEXNET is the faster route. For paper, mail the original to Texas Comptroller of Public Accounts, P.O. Box 149348, Austin, TX 78714-9348.
Do not mail a paper Form 05-164 after paying online. That creates a duplicate. Print the confirmation page and keep a copy of any submitted form.
Australian businesses often face tight US state filing windows across time zones. VJM Global supports Australian businesses and multinational companies with tax compliance, accounting coordination, payment review and filing preparation, including multi-state US obligations.
Other Texas Franchise Tax Filings You May Need
Report type and the no-tax-due threshold
Annualised total revenue at or below $2,650,000 means no tax is due, and you do not need to file a No Tax Due Report. A Public Information Report (PIR) or Ownership Information Report (OIR) can still be required.
For periods other than 12 months, annualise as total revenue divided by period days, times 365. This affects eligibility only, not the tax computation.
Form 05-158 versus Form 05-169
| 05-158 | 05-169 | |
|---|---|---|
| Report | Standard long form | EZ Computation |
| Eligibility | Any revenue | Annualised revenue of $20M or less |
| Rate | 0.75% (0.375% for qualifying wholesalers and retailers) | 0.331% of apportioned revenue |
| Deductions and credits | Margin deductions and eligible credits | None |
The standard margin is the lowest of 70% of revenue, revenue less cost of goods sold, revenue less compensation, or revenue less $1 million.
PIR and OIR requirements
- Form 05-102 (PIR): corporations, LLCs, limited partnerships, professional associations and financial institutions organised in Texas or with Texas nexus.
- Form 05-167 (OIR): other taxable entity types with the same connection.
Both are due May 15, 2026. Each combined-group member files its own. Below-threshold entities may submit a timely no-payment request to extend to November 16, 2026.
Penalties, Common Mistakes, and a 2026 Compliance Checklist
Penalties and interest
- Late franchise tax report: $50, even if no tax is due
- Late PIR or OIR alone: no $50 penalty
- Late payment: 5%, plus another 5% if unpaid after 30 days
- EFT noncompliance: an added 5%
- Interest: 7.75% for 2026
Unfiled reports or unpaid amounts 45 days after a Notice of Intent can trigger forfeiture of corporate powers. Officers and directors may face personal liability for debts incurred in Texas during forfeiture.
Interest timing differs by source: the Comptroller's interest page starts interest 61 days after the due date, while the 2026 instructions use 60 days. Confirm the current figure on the interest page before you calculate.
Common mistakes
- Assuming a federal extension applies
- Treating the extension as a payment deferral
- Using the wrong EFT payment channel
- Testing eligibility on Texas-only revenue
- Failing to annualize a short period
- Claiming deductions on the EZ report
- Overlooking PIR or OIR requirements
- Submitting duplicate requests
2026 compliance checklist
- Confirm your Texas account and filing type.
- Verify the 2026 calendar.
- Calculate the required payment.
- Use the correct submission method.
- Save proof of filing and payment.
- Calendar the final extended deadline.
Rules and forms change, so check the current Comptroller instructions before you file.
Frequently Asked Questions
How can I get an extension for my franchise tax in Texas?
Submit Form 05-164 or use Webfile, with TEXNET for EFT payments, by May 15, 2026. Pay at least 90% of 2026 tax or 100% of eligible prior-year tax.
What is the due date for Texas franchise tax with an extension?
Non-EFT filers have until November 16, 2026. EFT filers have until August 17, 2026, and until November 16 if the balance is paid by August 17.
What is the penalty for filing Texas franchise taxes late?
A late report carries a $50 penalty. Late payment adds 5%, then another 5% after 30 days, plus 7.75% annual interest in 2026.
When do I pay franchise tax in Texas?
The required extension payment is due by May 15, 2026. Non-EFT filers pay the remainder with the November report; EFT filers pay it by August 17.
What are the filing requirements for Texas franchise tax in 2026?
File the franchise tax report unless revenue is at or below $2,650,000. Entities owing no tax may still need Form 05-102 or 05-167.
What are the differences between Texas forms 05-158 and 05-169?
Form 05-158 is the long-form report with margin deductions and credits. Form 05-169 is the optional EZ report for revenue of $20M or less, at 0.331% with no deductions.
