States / Texas

Texas

Last checked Oct 22, 2026

Texas has no state income tax, so most practitioner work runs through three agencies: the Comptroller (Webfile and eSystems for sales, franchise and other taxes), the Texas Workforce Commission (unemployment tax and claims) and the Secretary of State (business filings), plus the Attorney General's employer portal for new hire reporting. The Comptroller's tax systems are run by the agency itself on a mainframe base; no commercial tax system contract was found, and its one large web contract was a 2019 Deloitte rebuild of Webfile. TWC hired Sagitec in January 2021 to replace its 1980s and 1990s unemployment tax, benefits and appeals systems for up to $83.6M. TWC suspended the contract from March 2023 to September 2024, cut it back to the tax module, and as of October 2026 the new tax system, TxUS, has not gone live; the state's oversight dashboard shows the project budget up from $66.5M to $75.4M and the finish moved from December 2023 to December 2026. The Secretary of State replaced SOSDirect with SOSPortal on 9/29/2026 under a $42.3M modernization project. Texas has no state paid family and medical leave program.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Greg Abbott
    • Chairman and Commissioner Representing Employers: Joe Esparza Texas Workforce Commission
    • Commissioner Representing Labor: Alberto Treviño III Texas Workforce Commission
    • Commissioner Representing the Public: Brent Connett Texas Workforce Commission
    • Secretary of State: Robert S. Howden Texas Secretary of State
  • Texas Comptroller of Public Accounts: Don Huffines Texas Comptroller of Public Accounts
  • Attorney General: Ken Paxton Child Support Division, Office of the Attorney General of Texas

Employer account numbers

Checked Oct 24, 2026. No state income tax on wages, so no withholding account.

Texas has no state income tax (Texas Comptroller: "Texas has no state income tax"), so there is no state withholding account. The only state employer payroll tax account is unemployment tax with the Texas Workforce Commission (TWC). No state paid family leave or disability insurance program with an employer account was found.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. Texas Workforce Commission (TWC), Unemployment Tax

Texas taxes the first $9,000 of each employee's wages, a figure fixed in the Labor Code, and the entry-level rate for new employers is 2.70% for 2026 in every industry group. The 2026 effective rate runs from 0.32% to 6.32% and is the sum of five components, one of them the 0.10% Employment and Training Investment Assessment, which is offset by an equal cut in the replenishment rate. TWC had not published 2027 rates when checked.

Taxable wage base

2027: $9,000
2026: $9,000
Not indexed: Texas Labor Code 201.082(1) excludes from wages remuneration above $9,000 per individual per calendar year. The 2027 figure is the statute's; TWC had not posted 2027 rate information when checked. source Public record

New employer rate

2026: 2.7% TWC: "For 2026, the entry-level rate is 2.70% for all groups with no exceptions." Labor Code 204.006 sets the initial rate as the greater of the employer's major industry group rate less 0.1% or 2.6%; TWC's published entry-level rate of 2.70% includes the 0.10% ETIA. A new employer keeps the predetermined rate until it has four chargeable quarters, then gets an interim rate. source Public record

Rate range

2026: 0.32% to 6.32%, Effective rate = General Tax Rate + Replenishment Tax Rate + Obligation Assessment Rate + Deficit Tax Rate + ETIA. For 2026: replenishment ratio 1.20%, replenishment tax rate 0.21%, obligation assessment 0.01% (interest part only), no deficit tax rate. Rates are computed as of October 1 for the following calendar year; the General Tax Rate is the employer's three-year benefit ratio times the replenishment ratio. TWC's history table also gives 2026 average rates of 1.20% overall and 0.99% for experience-rated employers. source Public record

Other assessments

• Employment and Training Investment Assessment (ETIA): 0.10% (Labor Code 204.121: one-tenth of one percent of wages paid). By law (204.0625) the replenishment tax rate is cut by 0.10%, so TWC says there is no net increase in the employer's rate. It is part of the 2.70% entry-level rate and of the 0.32% minimum. (2026) source Public record
• Unemployment Obligation Assessment (OA): Bond Obligation Assessment Rate plus Interest Tax Rate: 0.01% for 2026: no Bond Obligation Assessment Rate (2026 OA ratio and yield margin both 0.00%), and an Interest Tax Rate of 0.01%, which TWC says pays interest on federal loans to Texas, if owed. Labor Code 203.105 caps the interest part at 0.2% and sends the money to the obligation trust fund. (2026) source Public record
• Deficit Tax Rate: None for 2026 (deficit tax ratio 0.00%). When it applies, it is the prior year rate times the deficit ratio, limited to 2%. (2026) source Public record

Rate notices

TWC computes experience rates as of October 1 for the next calendar year; the annual Tax Rate Notice (Form C-22) is typically mailed in December (mid-December for most employers), with the Voluntary Contribution Election (Form C-24). Notices can also be viewed in Unemployment Tax Services.. Protest: No rate notice protest deadline is stated on the TWC pages read. TWC directs employers who dispute taxes to request a Rule 13 tax liability hearing in writing by email to the Tax Department. source Public record

Voluntary contributions

Allowed, Postmarked or received no more than 60 calendar days after the date of the annual Tax Rate Notice. Labor Code 204.048(e) bars any rate reduction from a voluntary contribution made after the 120th day of the rate year. Predetermined (new employer) rates are not eligible. source Public record

Filing

Employer's Quarterly Report (wage report and tax payment)
Due: Last day of the month after the quarter: April 30, July 31, October 31, January 31; the next business day when the date falls on a weekend or a legal holiday on which TWC is closed.
Electronic filing: Required: only employers with an approved electronic hardship waiver can submit reports and payments by mail.
Unemployment Tax Services (UTS) source Public record

FUTA credit reduction

None. Not listed by the U.S. Department of Labor as having a Title XII advance balance on January 1, 2026, and not a credit reduction state in any year from 2010 to 2025. source Public record

Recent and coming changes

• The Texas Unemployment System (TxUS) will replace Unemployment Tax Services (UTS) and Unemployment Tax Registration (UTR). Account numbers and history carry over, but every user needs a new user ID and password, and agents need a new TWC Agent ID. TWC says the go-live date is still being finalized. source Public record

Texas has no separate account or number for the ETIA or the obligation assessment: all five components make up one effective rate on the TWC account. The ETIA goes to the employment and training investment holding fund, a trust fund outside the state treasury (Labor Code 204.122), and the obligation assessment goes to the obligation trust fund (203.105(d)); TWC deposits voluntary contributions to the compensation fund (204.048(f)). Statute text was read from the legislature's statute server (tcss.legis.texas.gov), which serves the statutes.capitol.texas.gov pages.

Not confirmed: 2027 rates (minimum, maximum, replenishment ratio, obligation assessment, deficit rate) and the 2027 entry-level rate: not yet published by TWC when checked (TWC computes them as of October 1 and mails notices in December). Whether the ETIA (0.10%) and the obligation assessment (0.01% interest tax for 2026) count toward the FUTA credit: TWC's pages and the Labor Code sections read do not say. Both are deposited outside the unemployment compensation fund. Rate notice protest deadline: not stated on the TWC pages read; the Form C-22 notice itself was not available to read. Quarterly report form number: the TWC pages read call it the Employer's Quarterly Report without a form number.

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Texas has no state income tax, so employers withhold no state income tax from wages (Texas Comptroller: "Texas has no state income tax"). No city or county income tax is withheld.

The only state employer payroll tax account is unemployment tax with the Texas Workforce Commission, which is paid by the employer and not withheld from wages, so it is left out here. Texas residents of Texarkana, Texas who work in Texarkana, Arkansas are covered on the Arkansas page.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

Texas has no state income tax, so there is no resident credit, part-year rule or reverse credit. Its franchise tax is a privilege tax on each taxable entity formed in or doing business in Texas, and Georgia's instructions let Georgia residents subtract their share of income subject to the Texas Margin Tax. Texas is a Compact member of the Multistate Tax Commission.

Multistate Tax Compact

Compact member. The Commission lists Texas's enactment of the Multistate Tax Compact at Tex. Tax Code 141.001. source Public record

Other interstate rules

• Franchise (margin) tax: a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. source Public record
• Interaction with other states: Georgia's 2025 IT-511 booklet lets a Georgia resident subtract income taxed at the entity level by another state and says income subject to the Texas Margin Tax is eligible. source Public record
• Arkansas lists Texas among the states without a tax similar to its pass-through entity tax for tax years beginning in 2026, and as a state with no owner-level personal income tax on PET income. source Public record

Not confirmed: Whether Texas still applies the Compact's apportionment article for the franchise tax was not checked.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Texas has no corporate income tax; corporations, LLCs and partnerships other than general partnerships owned entirely by natural persons file the annual franchise tax report with the Comptroller by May 15 (the 2026 report, on 2025 accounting years, was due May 15, 2026). There is no partnership income tax return. Corporations, LLCs and limited partnerships have no Secretary of State annual report: the Public Information Report filed with the franchise tax report takes its place, while a Texas LLP files a Secretary of State annual report by June 1 at $200 per general partner and nonprofits file a periodic report when notified, at most once every four years.

Corporate return

Franchise tax. Form 05-158 (Franchise Tax Report, Long Form) or Form 05-169 (E-Z Computation Report, for annualized total revenue of $20 million or less), with Form 05-102 (Public Information Report) or Form 05-167 (Ownership Information Report); an entity at or below the no tax due threshold ($2,650,000 for 2026 and 2027 reports) files only the information report. Due: The annual franchise tax report is due May 15; if May 15 falls on a weekend or holiday, the due date is the next business day. For tax year 2025: May 15, 2026. Fiscal years: The report year is the year the report is due; the report covers the accounting period ending on the last federal accounting year end date in the year before the report year, so every filer, calendar or fiscal, files by May 15. source Public record

Corporate extension

By request. To November 15; an entity required to pay by EFT (it paid $10,000 or more in the previous state fiscal year) gets a first extension to August 15 and may then request a second extension to November 15. Form 05-164 (Texas Franchise Tax Extension Request) or Webfile; TEXNET payment code 13080 for TEXNET payers. The extension payment must be at least 90 percent of the tax due with the report or 100 percent of the tax reported on the prior year's report (not available for a first annual report); penalty and interest apply to any part of the 90 percent not paid by May 15. An entity that owed no tax the prior year may file a no payment extension.

S corporations

No separate return: S corporations are taxable entities and file the same franchise tax report. Due: May 15. For tax year 2025: May 15, 2026. Same as the franchise tax report. source Public record

Partnerships

No partnership return required. No partnership income tax return. Limited partnerships, LLPs and general partnerships not owned entirely by natural persons are taxable entities that file the franchise tax report (Form 05-158 or 05-169, with Form 05-102 or 05-167). source Public record

Other business returns with a fixed date

• Final franchise tax report: Within 60 days after the taxable entity no longer has nexus with Texas; an extension runs 45 days after the original due date. Entities ending nexus with Texas. source Public record

Annual report

Filed with the Texas Comptroller of Public Accounts (Public Information Report or Ownership Information Report, with the franchise tax report); Texas Secretary of State (LLP annual report, nonprofit and certain limited partnership periodic reports) through Webfile (Comptroller eSystems); SOSDirect for Secretary of State filings.

Corporations, LLCs, professional associations and limited partnerships subject to franchise tax file no Secretary of State annual report; the Public Information Report filed with the Comptroller lists their officers, directors and managers.

Recent and coming changes

• Jan 1, 2026 No tax due threshold raised to $2,650,000 for reports originally due on or after January 1, 2026 and before January 1, 2028 (the 2026 and 2027 reports) source Public record
• Jan 1, 2026 New filing requirements for research and development activities credits for franchise tax source Public record

Tax year 2026 (the 2027 report) keeps the May 15 due date; May 15, 2027 is a Saturday, so under the next business day rule the report would be due Monday, May 17, 2027.

Not confirmed: Nonprofit periodic report (Form 802) filing fee and the consequence of not filing: the form says only 'See Instructions' and the Secretary of State's fee page was not found at the address tried. Out-of-state LLP renewal fee (Form 308) not read.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Texas has no income tax; a taxpayer that paid $10,000 or more in a tax category in the prior state fiscal year must pay that tax electronically, $500,000 or more must use TEXNET, and paying another way costs 5%. A late payment adds 5% (1 to 30 days late) or 10% (over 30 days), plus another 10% if paid after the date on the Notice of Tax/Fee Due, and most late reports also carry a $50 penalty. Interest is prime plus 1%, 7.75% for 2026, starting 61 days after the due date.

Interest on unpaid tax

Prime rate plus 1 percent, using the prime rate published in the Wall Street Journal on the first business day of the year; interest on past due taxes begins 61 days after the due date. Refund claims earn the lesser of the treasury pool rate or prime plus 1 percent. Compounding: Not stated; the Comptroller's worked example figures interest as tax times annual rate times days, divided by 365 (or 366). Texas Tax Code Section 111.060. source Public record

When tax must be paid electronically

• All taxes: Paid $10,000 or more in a payment category during the preceding state fiscal year (September 1 to August 31); applies to sales and use, franchise, bank franchise, hotel, mixed beverage, insurance premium, motor fuel and other listed taxes, and continues while payments stay at $10,000 or more. Methods: TEXNET, electronic check with Webfile, electronic check with EDI, or credit card. The Comptroller informs taxpayers who meet the threshold at least 60 days before the due date; ACH credit requires enrollment in TEXNET. Penalty for paying another way: 5% of payments not made electronically as required, for each filing period, in addition to any late payment penalty. source Public record
• All taxes: Paid $500,000 or more in a tax category in the prior fiscal year; applies to all tax types. Methods: TEXNET (ACH debit, or ACH credit with TXP addenda). Enrollment in TEXNET. Penalty for paying another way: 5% of payments not made electronically as required, for each filing period. source Public record

Penalties

Late filing

Covers: Most taxes administered by the Comptroller (sales and use, franchise and others). $50 for each late report, assessed even if the report is later filed or no tax is due for the period. source Public record

Late payment

Covers: Past due taxes administered by the Comptroller. 5% if paid 1 to 30 days late; 10% if paid more than 30 days late; an additional 10% if paid after the date on the Notice of Tax/Fee Due. Maximum: 20% of the tax (10% plus the additional 10% after the notice date). The $50 late filing penalty is an additional penalty on top of the late payment penalty. source Public record

Penalty relief

Request a waiver with the Comptroller's online form or on Form 89-224 (late report or payment) or Form 89-225 (failure to file or pay electronically). All reports must be filed and all tax paid first; the request is weighed under Rule 3.5 factors, such as current compliance and steps taken to file and pay on time. First-time or good history: No formal first-time abatement, but a business that received a waiver in the past two years is not eligible unless there are extenuating circumstances; a waiver covers at most one annual, two quarterly or six monthly report periods (more through the Voluntary Disclosure Program). How: Form 89-224, Request for Waiver of Penalty for Late Report and/or Payment; Form 89-225, Request for Waiver of Penalty for Failure to File and/or Pay Electronically. Time limit: Within the statute of limitations, generally four years from the date the tax became due and payable. source Public record

Other penalties

• IFTA late report (including no operations, no tax due and credit reports). $50 or 10% of total tax liability, whichever is greater. source Public record
• Failure to pay electronically when required. 5% penalty, separate from late payment penalties. source Public record

Texas has no personal income tax, and no estimated tax penalty for individuals or businesses was found on the Comptroller's pages, so the estimated tax fields are left empty. Interest for 2027 will be prime plus 1 percent using the prime rate on the first business day of 2027; it was not yet published on 2026-11-04. Unemployment tax (Texas Workforce Commission) is not covered here.

Not confirmed: Texas Tax Code sections for the penalties (the statutes site at statutes.capitol.texas.gov loads its text with scripts and returned no text to an automated read), so lateFile and latePay carry no citation. Dishonored payment penalty and late information report penalties were not found on the pages read. 2027 interest rate (set from the prime rate on the first business day of 2027).

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

Texas has no individual income tax and does not automatically follow IRS disaster postponements. When the governor declares a disaster, taxpayers in the named counties may ask the Comptroller for more time to file and pay state taxes; extensions are granted on request, case by case, by email to ExtensionRequests@cpa.texas.gov or by phone at 800-252-5555.

When the IRS postpones deadlines

Announces relief case by case "When Gov. Abbott declares a disaster, taxpayers in the affected counties may be eligible for an extension of time to file returns, pay taxes and meet other deadlines established by the Comptroller. In most cases, extensions are considered upon request and on a case-by-case basis." For one IRS event outside Texas (Southern California wildfires, January 2025) the Comptroller said: "For all out-of-state taxpayers who are eligible for the IRS relief, the Comptroller will grant, upon request, a 90-day extension (from the due date) for Texas taxes.". Counties in the governor's disaster declaration; for the 2025 California wildfires, out-of-state taxpayers eligible for the IRS relief. Requests only; nothing is extended automatically. Comptroller, Disaster Relief Information page, and Publication 94-182, Disasters and Texas Taxes (10/2021). The pages cite no statute for the extension power. source Public record

Taxes covered

Returns, payments and other deadlines set by the Comptroller (for example sales and use tax and franchise tax), by request. For the 2025 California wildfire relief the Comptroller said additional time may be granted for certain tax types, including franchise tax. Not covered: Property tax: the Comptroller says its extension process does not apply to property tax, which has its own disaster rules. source Public record

State-declared disasters

The governor's disaster declaration is the trigger: taxpayers in the declared counties may request an extension. Publication 94-182 says that when the governor or the president declares a location in Texas a disaster area, taxpayers there are eligible for certain exemptions and filing extensions. source Public record

How to get relief

By request only: call 800-252-5555 or email ExtensionRequests@cpa.texas.gov with the taxpayer name and number, the name and email or phone of the person asking, the tax types, the affected filing periods and the reason. The Comptroller notifies the taxpayer whether the request is granted or denied. source Public record

Where relief is posted

Disaster Relief Information (Texas Comptroller)

Other disaster tax rules

• Sales tax: labor to repair residential or nonresidential real property damaged in a declared disaster area is generally exempt; the materials are taxable. Labor to repair personal property damaged by a declared natural disaster can also be exempt. source Public record
• Sales tax: items bought with a FEMA debit card or a Red Cross voucher are not taxed (alcohol and tobacco excepted); purchases with personal funds, including FEMA or Red Cross checks deposited to a personal account, are taxable. source Public record
• An out-of-state business in Texas only to repair critical infrastructure during a disaster response period, at the request of or as an affiliate of a Texas business, need not register or collect Texas taxes, including franchise tax (Rules 3.583 and 3.286). source Public record
• Property tax: property at least 15 percent damaged in a declared disaster county can get a temporary exemption of part of its appraised value; the owner must apply no later than 105 days after the governor declares the disaster. source Public record

On 2026-11-04 the Comptroller's page listed no current declared disasters; the July 2026 storms are listed as a previous event.

Not confirmed: The statute behind the Comptroller's disaster extensions was not read: the Texas statutes site (statutes.capitol.texas.gov) loads its text by script. Whether penalties or interest are waived on a granted disaster extension is not stated on the Comptroller's disaster pages. Publication 94-182 is dated 10/2021; no later revision was found.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $298.6B; Individual income tax payments and SECA tax $103.0B; Business income taxes $37.0B; Excise taxes $24.9B; Estate and trust income tax $10.7B; Estate tax $3.0B; Railroad retirement tax $1.4B; Unemployment insurance tax $672M; Gift tax $238M. source Public record

Filers moving in and out, 2022 to 2023

307,240 returns (553,369 people) with $25.7B of income moved in from other states; 250,767 returns (440,888 people) with $20.2B moved out, a net gain of $5.5B in income. source Public record

Minimum wage

Checked Nov 3, 2026. Texas Workforce Commission

Texas adopts the federal minimum wage by reference, so the rate is $7.25 an hour in 2026 and 2027, unchanged since July 24, 2009. Tipped employees follow the federal rule: a $2.13 cash wage with a $5.12 tip credit. The Texas Minimum Wage Act does not cover employment that the federal Fair Labor Standards Act covers, and it supersedes local minimum wages for private employment.

Rate

$7.25 from Jul 24, 2009 The federal rate, adopted by reference.
$7.25 from Jul 24, 2009 No change scheduled; the rate moves only if the federal rate changes. source Public record

How it is set

Fixed in law Tex. Lab. Code 62.051 (the employer pays the federal minimum wage under Section 6 of the FLSA) source Public record

Other rates

• Employment covered by the federal Fair Labor Standards Act is exempt from the Texas Act (Tex. Lab. Code 62.151); the federal rate applies directly. Other exemptions include religious, educational, charitable and nonprofit employers, domestics, family members, amusement and recreational establishments and employers not liable for state unemployment contributions. (2026) source Public record

Tipped employees

2026: cash wage $2.13, tip credit $5.12 Tex. Lab. Code 62.052 uses the FLSA 3(m) tipped wage; a tipped employee customarily and regularly receives more than $20 a month in tips.
2027: cash wage $2.13, tip credit $5.12 No change scheduled. source Public record

Youth and training wages

No youth rate: the Texas Act exempts people under 18 who have not graduated from high school or a vocational program, and students under 20 regularly enrolled in high school, college or vocational training (Tex. Lab. Code 62.155); federal FLSA rules still apply where they cover the job. source Public record

Local minimum wages

Not allowed: state law preempts them source Public record

Poster

No state minimum wage poster; TWC's required state posters are the Texas Payday Law and Unemployment and Payday Law posters, and it points employers to the U.S. DOL for federally required posters

Tex. Lab. Code 62.0515 makes the state minimum wage supersede a wage set by a city, county or other political subdivision for private employment, but it does not apply to wages under a public contract or a minimum wage a governmental entity sets in its own contracts or agreements with private entities.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. Private insurance option only

Texas has no state paid family and medical leave or temporary disability insurance program funded by payroll contributions, so there is no contribution rate or wage base for 2026 or 2027. The Texas Workforce Commission says sick and parental leave are not required under Texas law. Since September 1, 2023, Insurance Code Chapter 1255 (H.B. 1996) lets insurers sell group family leave insurance that an employer may choose to offer; it is treated as disability income insurance, not a state program.

Recent and coming changes

• Sep 1, 2023 H.B. 1996 (88th Legislature) added Insurance Code Chapter 1255, Group Family Leave Insurance, under which insurers may write family leave insurance as a type of disability income insurance through optional employer-sponsored group coverage or voluntarily purchased employee policies. No payroll contribution or state program. source Public record

Voluntary insurance only: Chapter 1255 (Group Family Leave Insurance) sets minimum standards for privately insured family leave policies; employers are not required to buy them and nothing is withheld for the state. The Texas Workforce Commission employer guide says vacation, sick and parental leave are not required under Texas law unless leave would be a reasonable accommodation under disability or pregnancy laws.

Not confirmed: No Texas agency page found that says in so many words that Texas has no state paid family and medical leave or disability insurance payroll contribution; "none" rests on the TWC employer guide (leave not required under Texas law), the absence of any such account on TWC and Comptroller pages, and H.B. 1996 framing family leave insurance as optional. Whether the Texas Department of Insurance has adopted rules under Section 1255.005 or approved any family leave insurance forms was not checked.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. No paid sick leave law

Texas does not require private employers to give paid or unpaid sick leave or vacation; the Texas Workforce Commission says no Texas law requires private employers to provide leave of any kind. The paid sick leave ordinances of Austin, San Antonio and Dallas were held preempted by the Texas Minimum Wage Act, and since September 1, 2023 Labor Code 1.005 bars cities and counties from regulating employment leave. There is no state family and medical leave law, so the state relies on the federal FMLA, and accrued leave is paid out at separation only if a written policy or agreement promises it.

Paid sick leave

No state law requires private employers to give paid sick leave.

Local laws: Unless another statute expressly authorizes it, a municipality or county may not adopt, enforce or maintain an ordinance, order or rule regulating conduct in a field occupied by the Labor Code; the occupied field includes employment leave, hiring practices, breaks, employment benefits, scheduling practices and other terms of employment that exceed or conflict with federal or state law, for employers other than a municipality or county. Separately, Texas courts held the Austin, San Antonio and Dallas paid sick leave ordinances preempted by the Texas Minimum Wage Act. A challenge by Houston, San Antonio and El Paso to H.B. 2127 won in the trial court in 2023, but on July 18, 2025 the Third Court of Appeals reversed and dismissed the suit for lack of jurisdiction (the cities lacked standing); rehearing was denied April 15, 2026, and a petition for review was filed in the Texas Supreme Court on June 29, 2026; the appeals court docket showed no decision on it as of November 5, 2026 (its last entry, August 4, 2026, granted more time to respond). (Tex. Lab. Code 1.005 (H.B. 2127, 88th Leg., R.S., 2023, eff. September 1, 2023)) source Public record

Family and medical leave

No state family and medical leave law for private employers; Texas relies on the federal FMLA. The Texas Workforce Commission says the only employers required to give up to 12 weeks of unpaid job-protected family or medical leave are those covered by the federal FMLA (50 or more employees within 75 miles).

Vacation and PTO at the end of employment

Employer policy controls Wages under the Texas Payday Law include vacation, holiday, sick leave, parental leave and severance pay owed under a written agreement with the employer or a written policy of the employer. The Texas Workforce Commission says payouts of accrued leave are required only if promised in a written policy or agreement, the wording of which controls; with no such policy the employer owes nothing. The Commission's sample policy forfeits unused paid leave at separation except for economic layoffs and resignations with two weeks' written notice, and its policy guide leaves carryover from year to year to the employer's written policy, which the Payday Law enforces as written. (Tex. Lab. Code 61.001(7)(B); Texas Workforce Commission, Texas Guide for Employers, Accrued Leave Payouts) source Public record

Other leave the law requires

What was checked: Checked the Texas Workforce Commission's Texas Guide for Employers pages on vacation and sick leave, accrued leave payouts, jury duty, voting time off, military leave, medical leave laws and holiday policies, and the Labor, Election, Government and Civil Practice and Remedies Code chapters on the Texas Legislative Council's statute site (tcss.legis.texas.gov). Local ordinances: Austin's 2018 ordinance (one hour of sick time per 30 hours worked) was held preempted by the Texas Minimum Wage Act in Tex. Ass'n of Bus. v. City of Austin, 565 S.W.3d 425 (Tex. App. Austin 2018, pet. denied); San Antonio's in Washington v. Associated Builders & Contractors of S. Tex. (Tex. App. San Antonio March 10, 2021); and the federal district court permanently enjoined Dallas's ordinance on March 31, 2021 (ESI/Employee Solutions v. City of Dallas, E.D. Tex. No. 4:19-cv-570), as the City of Dallas's own page says. None is in force, so none is listed in local. The TWC military leave page says the law requiring government employers to pay up to 15 days of military leave a year does not apply to private employers. Holidays: the TWC says Texas does not require employers to observe holidays or pay for them unless a written policy promises it. The Texas Insurance Code Chapter 1255 group family leave insurance option is on the paid leave page (data/paidleave/texas.json); it is voluntary and not a leave requirement.

Not confirmed: The Austin court of appeals opinion (565 S.W.3d 425) and the San Antonio opinion were read only as quoted in the Dallas federal opinion and a government index excerpt; neither was saved directly. The Texas statute site statutes.capitol.texas.gov loads by script; statute text was saved from the Texas Legislative Council's static copy at tcss.legis.texas.gov instead.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Sales and use tax

Checked Nov 3, 2026

Texas imposes a 6.25 percent state sales and use tax, and cities, counties, special purpose districts and transit authorities can add up to 2 percent, for a maximum combined rate of 8.25 percent; the Comptroller collects state and local tax on one return. A remote seller must get a permit once its total Texas revenue reaches $500,000 in the preceding twelve calendar months, and can choose a single local use tax rate (currently 1.75 percent) instead of collecting each destination's local rate.

State rate

6.25% source Public record

Local taxes

Yes, collected by the state. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can impose up to 2 percent, and the combined local rate cannot be more than 2 percent, so the most tax a seller can collect is 8.25 percent. State and local sales and use taxes are reported on the same Texas Sales and Use Tax Return. Local use tax is due where the order is shipped or delivered when it is not received or fulfilled from a Texas place of business. Rate lookup source Public record

Remote sellers

$500,000; counts gross: total Texas revenue from taxable and nontaxable sales of tangible personal property and services into Texas, including separately stated handling, transportation and installation fees, sales for resale and sales to exempt entities, and (as of April 1, 2020) marketplace sales sales; preceding twelve calendar months; since Oct 1, 2019. Obtain a permit and begin collecting no later than the first day of the fourth month after the month the remote seller exceeds the $500,000 safe harbor amount. The Comptroller calls the $500,000 figure a safe harbor: below it a remote seller does not need a permit. A remote seller may elect the single local use tax rate (Tax Code Sec. 151.0595), currently 1.75 percent and published in the Texas Register by January 1 each year, in place of each destination's local rate: on the permit application, or later on Form 01-799 effective at the start of a reporting period. A revocation received before October 1 takes effect at the end of that calendar year; on or after October 1, at the end of the following year. Businesses located in Texas and marketplace providers cannot use the single rate. The FAQ says remote sellers were not responsible for collecting before October 1, 2019 unless engaged in business in Texas. source Public record

Marketplace facilitators

Must collect (A marketplace provider that is a remote seller does not need a permit until all sales through its marketplace exceed $500,000, unless it is otherwise engaged in business in Texas.) source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Sales and use tax permit, No fee, but the Comptroller may require a security bond. Register Apply online through the Comptroller's online tax registration application (eSystems) or on Form AP-201; allow 2 to 3 weeks to receive the permit. Out-of-state sellers use the same application; a remote seller located outside the United States emails or faxes the application. source Public record

Filing

• monthly: assigned by the Comptroller by letter after the permit is approved
• quarterly: assigned by the Comptroller by letter after the permit is approved
• yearly: listed as a filing frequency; the threshold is not stated on the Comptroller pages read

Due: The 20th of the month after the reporting period (monthly); April 20, July 20, October 20 and January 20 (quarterly); January 20 for the previous year (yearly). A due date on a weekend or legal holiday moves to the next working day.
Electronic filing: Based on tax paid in the preceding state fiscal year (September 1 to August 31): paying by check is listed only below $10,000; at $50,000 or more paper reporting is not available; at $500,000 or more payment is by EDI or TEXNET only. The Comptroller notifies taxpayers by letter when they must pay through TEXNET.
Vendor discount: 0.5 percent of tax timely reported and paid; prepayers can take an additional 1.25 percent.
Webfile (Comptroller eSystems) source Public record

Certificates

Resale: Form 01-339, Texas Sales and Use Tax Resale Certificate; a blanket certificate is allowed when a customer buys exclusively for resale. The form has a field for an out-of-state retailer's registration number.
Exemptions: The back of Form 01-339 is the Texas Sales and Use Tax Exemption Certification. source Public record

The Comptroller's pages give the 6.25 percent rate without a statute citation; the Tax Code text could not be read (the statutes site loads by script).

Not confirmed: Statute and effective date for the 6.25 percent state rate (Tax Code Sec. 151.051): statutes.capitol.texas.gov loads by script and returned no text. Liability thresholds that decide monthly, quarterly and yearly filing: not stated on the current Comptroller pages read; a 2016 Fiscal Notes article found by search gives less than $1,500 a quarter for quarterly and less than $1,000 a year for yearly, not verified against Rule 3.286. Effective date and statute for marketplace provider collection (Tax Code Sec. 151.0242): not stated on the Comptroller pages read. Whether Texas accepts the Multistate Tax Commission or Streamlined certificates: not stated on the Comptroller resale FAQ or Form 01-339. Recent changes: none found on the Comptroller sales tax pages read; Texas Register notice of the single local use tax rate for 2026 not read.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. Surcharges barred

Texas law bars a seller from adding a surcharge when a buyer pays with a credit card (Bus. & Com. Code 604A.0021) and bars a merchant from surcharging debit or stored value cards (604A.002); a discount for paying cash is not a surcharge. In 2018 a federal court held the credit card ban unconstitutional as applied to the five merchants who sued and enjoined the Attorney General from enforcing it against them, and the Attorney General said in 2019 that the ban remains enforceable in some contexts. Government entities and private schools are exempt.

The rule

In a sale of goods or services, a seller may not impose a surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check, or a similar means of payment. A merchant also may not surcharge a buyer who uses a debit or stored value card. source Public record

Cards covered

Credit cards (604A.0021) and debit and stored value cards (604A.002). The law defines surcharge as an increase in the price charged to a buyer who pays with a credit, debit or stored value card that is not imposed on a buyer who pays by other means.

Exceptions

Neither ban applies to a state agency, county, local governmental entity or other governmental entity that accepts cards for fees, taxes or other charges, or to a private school that accepts cards for fees or other charges.

Enforcement

A person who knowingly violates 604A.002 or 604A.0021 is liable to the state for a civil penalty of up to $500 per violation, in a suit by the Attorney General or the county prosecuting attorney, who may also seek an injunction and recover expenses. Before suing they must give notice; a violation cured within 30 days of the notice carries no penalty (no second notice for a repeat violator). The credit card section does not create a cause of action against an individual.

The law

Tex. Bus. & Com. Code 604A.001, 604A.002, 604A.0021, 604A.003, Credit card ban: S.B. 1353 (1985), formerly Finance Code 339.001; moved to Bus. & Com. Code 604A.0021 by S.B. 560 (2017). Debit and stored value ban: S.B. 641 and H.B. 1881 (2015)., in effect since Sep 1, 2017

Agency guidance

texasattorneygeneral.gov

Cash discounts

The definition of surcharge does not include a discounted price charged for goods or services to a buyer who pays with cash. (Tex. Bus. & Com. Code 604A.001(5)) source Public record

Sales tax on the surcharge

Depends Taxable when the item sold is taxable. A Comptroller Tax Policy memo of June 27, 2024 (STAR 202406004M) says separately stated credit card processing fees a retailer passes on to the customer are part of the total sales price of a taxable item: the retailer is not extending credit, so the exclusion for finance and service charges in Tax Code 151.007(c)(4) does not apply. It partly supersedes three 1990 Comptroller decisions that had excluded such charges when separately stated. source Public record

Court rulings

• Mar 2, 2016 Rowell v. Pettijohn, 816 F.3d 73 (U.S. Court of Appeals for the Fifth Circuit): Affirmed dismissal of merchants' challenge to the credit card ban (then Finance Code 339.001), holding it did not implicate the First Amendment and was not unconstitutionally vague. Vacated by the U.S. Supreme Court in 2017. source Public record
• May 25, 2017 Rowell v. Pettijohn, on remand (U.S. Court of Appeals for the Fifth Circuit): After the Supreme Court vacated the 2016 ruling for reconsideration in light of Expressions Hair Design v. Schneiderman, the Fifth Circuit sent the case back to the district court. source Public record
• Aug 16, 2018 Rowell v. Paxton, No. 1:14-cv-190-LY (U.S. District Court for the Western District of Texas): Held that 604A.0021, as applied, violates the plaintiff merchants' commercial free speech rights, and permanently enjoined the Attorney General from enforcing it against the five plaintiffs. The court said the state could instead cap the price difference or limit a surcharge to the swipe fee. The ruling covers the credit card ban only; the debit card ban was not at issue. source Public record
• Jun 14, 2019 Texas Attorney General Opinion KP-0257 (Texas Attorney General (opinion)): Although Rowell held 604A.0021 unconstitutional as applied to specific facts, it remains enforceable in some contexts, for example where a surcharge exceeds the merchant's card fees; the section does not apply to a county surcharging a payee who pays money owed to the county by credit card. source Public record

What was checked: Read Bus. & Com. Code chapter 604A and Finance Code chapter 339 (339.001 no longer exists; it was moved to 604A.0021 in 2017), Tax Code 151.007, the Fifth Circuit's 2016 and 2017 Rowell opinions, the district court's 2018 order and final judgment (court documents from CourtListener's RECAP copy, linked from the Texas State Law Library), Attorney General Opinion KP-0257 and the Senate Research Center analysis of H.B. 3615 (2023), a bill to repeal 604A.0021 and allow a surcharge with a cardholder disclosure; the current 604A text still contains 604A.0021, so that bill did not become law. The map status is prohibited because the statute is in force for everyone except the five Rowell plaintiffs, but the as-applied ruling and KP-0257 leave its reach uncertain where a surcharge does not exceed the merchant's cost.

Not confirmed: The Rowell district court order and judgment were read from CourtListener's RECAP copy, not a government host; PACER or govinfo copy not found. Bills in the 2025 (89th) session on card surcharges were not searched.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026

Texas has no pass-through entity tax election because it has no state income tax, so there is no owner-level income tax for an entity-level tax to replace. Partnerships, LLCs and S corporations are instead subject to the franchise tax, a privilege tax on each taxable entity formed in or doing business in Texas.

Source for the absence of an income tax: the Comptroller (https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/); franchise tax: https://comptroller.texas.gov/taxes/franchise/. Arkansas DFA lists Texas among states without a tax similar to its pass-through entity tax for tax years beginning in 2026 (https://www.dfa.arkansas.gov/wp-content/uploads/States_with_Similar_Tax_PET_2026.pdf).

Not confirmed: No bill to create an income tax or an entity-level election was searched for in the 2025 or 2026 sessions; none is expected, since Texas has no individual income tax.

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: franchise tax

Texas has no income tax. Its franchise tax statute defines the Internal Revenue Code as the Code in effect for the federal tax year beginning January 1, 2007, but under a 2026 Comptroller rule, amounts taken from the federal return are now figured under the federal law in effect for that year, starting with the 2026 report. So federal bonus depreciation and section 179 expensing now flow into cost of goods sold, while items the statute ties to the Code, such as section 174 research costs and section 197 amortization, still follow the 2007 Code.

Follows the Code

Fixed date, Code as of Jan 1, 2007. Tex. Tax Code 171.0001(9); 34 TAC 3.588(d)(6), as amended effective June 21, 2026
The statute: the Internal Revenue Code of 1986 in effect for the federal tax year beginning on January 1, 2007, not including later changes. The Comptroller: beginning with the 2026 franchise tax report, amounts taken from the federal return are determined under the federal tax law in effect for that federal tax year, unless the Texas statute or rule specifically references the Code; where it does, the 2007 Code applies. The Comptroller says this applies to all components of the franchise tax. The Legislature has not changed the 2007 definition. source Public record

Starting point

Corporations: other: total revenue from amounts reported on specific lines of the entity's federal tax return source Public record

Response to Public Law 119-21

Partly adopted. Comptroller amendments to 34 TAC 3.588 (cost of goods sold), filed June 1, 2026, effective June 21, 2026, adopting the policy of following current-year federal tax law; no legislation. Years: 2026 franchise tax report and later (a calendar year entity's 2026 report covers its 2025 accounting year)
This is an administrative change, not a conformity act: the statute still defines the Code as of 2007, and the Comptroller applies the 2007 Code wherever the statute or rule names the Code. Reports before 2026 use the 2007 Code for depreciation. source Public record

Provision by provision

Other differences

• GILTI and FDII (renamed NCTI and FDDEI by the 2025 federal law) are included in total revenue as reported federally and may not be subtracted as amounts under sections 78 or 951 to 964, which the statute ties to the 2007 Code. source Public record
• Section 197 amortization in cost of goods sold is still computed under the 2007 Code and is excluded from the one-time depreciation adjustment. source Public record

Guidance from the state

• Franchise Tax Frequently Asked Questions: Internal Revenue Code (IRC) Conformity
• Jun 12, 2026 Adopted amendments to 34 TAC 3.588, Margin: Cost of Goods Sold (Texas Register)
• Texas Franchise Tax Report Instructions, Form 05-915 (Rev. 4-26/2), Depreciation Adjustment

Recent and coming changes

• Jun 21, 2026 Amended Rule 3.588 takes effect: from the 2026 report, depreciation in cost of goods sold follows the federal return, with a one-time net depreciation adjustment for earlier production assets. source Public record

The statute and the Comptroller differ: Tax Code 171.0001(9) still defines the Code as of January 1, 2007, while the Comptroller, from the 2026 report, uses the federal law in effect for the year for amounts taken from the federal return unless the statute or rule names the Code. The rule's adoption notice records comments asking that bonus depreciation on assets placed in service in the 2025 accounting year carry forward; the Comptroller declined, saying that would need a legislative change.

Not confirmed: The FAQ page is undated; the date the Comptroller first announced the policy change was not confirmed from a primary source (secondary sources report January 2026). No Comptroller statement on section 163(j) or on the section 174A catch-up was found. No bill for the 2027 regular session was checked.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. No state pay range law

Texas has no state law requiring employers to put pay in job postings or to disclose pay to applicants or employees. Texas Labor Code Chapter 21 bars discrimination in compensation by employers with 15 or more employees, but it sets no posting or disclosure duty. No city or county ordinance requiring pay in postings was found.

Salary history ban: No. No salary history provision was found in Labor Code Chapters 21, 61 or 62. source Public record

What was checked: Checked the Labor Code on the Legislature's statutes site: Chapter 21 (Employment Discrimination), whose Section 21.051 makes it unlawful for an employer to discriminate against an individual in connection with compensation because of race, color, disability, religion, sex, national origin or age, and whose only advertisement section (21.059, Discriminatory Notice or Advertisement) concerns discriminatory preferences, not pay; Chapter 61 (Payment of Wages, the Texas Payday Law); and Chapter 62 (Minimum Wage). Chapter 21's employer definition covers a person with 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year. None of these chapters requires pay in postings or pay disclosure. The Texas Workforce Commission says its Wage and Hour program includes the Texas Payday law, Child Labor law and the Minimum Wage law, and its employment discrimination program covers hiring, firing, promotions, harassment, training, wages and benefits; neither page mentions a posting or disclosure rule.

Not confirmed: Local ordinances: no Texas city or county code was read. A web search turned up no Texas ordinance on pay in postings; not confirmed from the codes of Houston, Dallas, San Antonio or Austin. Whether the 2023 state law on local regulation in the field of the Labor Code (HB 2127, 88th Legislature) limits a city posting rule: not read. Bills of the 89th Legislature (2025) and any later special session on pay transparency or salary history were not checked on Texas Legislature Online.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Texas Comptroller of Public Accounts

The Comptroller's power of attorney is Form 01-137, Limited Power of Attorney, with a separate Form 10-341 for crude oil and natural gas taxes; the Comptroller says IRS Form 2848 is not an acceptable power of attorney for a private letter ruling request. Texas has no personal income tax and no paid preparer registration program was found. Electronic filing and payment are required of taxpayers by the amount they paid in the prior state fiscal year, not of preparers by return count.

Power of attorney

Form 01-137, Limited Power of Attorney (Rev. 10-26); Form 10-341, Crude Oil and Natural Gas Tax Limited Power of Attorney. An attorney, accountant, firm or other representative; the form asks for the agent's relationship to the taxpayer (attorney, CPA, tax return preparer, etc.). The tax, subtype or fee types and the periods or report years listed on the form, for the purposes checked: communicating with the Comptroller and receiving confidential tax and audit information, requesting Webfile numbers, filing refund claims, signing and filing reports and returns, audits, redetermination or refund hearings, and agreements extending the limitation period. No renewal: it is effective from the signature date and continues until a date the taxpayer selects or until the taxpayer revokes it in writing. The form will not be accepted if the signature is undated. form source Public record

Federal Form 2848

Not accepted Stated for private letter ruling requests: the Comptroller says IRS Form 2848 is not an acceptable form for this purpose and lists what a power of attorney must contain. No general statement on the 2848 was found. source Public record

Information only

No separate information authorization was found; Form 01-137 itself covers requesting and receiving confidential tax and audit information. source Public record

Preparer registration

No program found

E-file mandate for preparers

Set by the taxpayer's payments in the preceding state fiscal year (September 1 to August 31): electronic reporting if $50,000 or more was paid for listed taxes such as sales and use tax; electronic payment if $10,000 or more was paid for listed taxes; TEXNET payment if $500,000 or more was paid for a tax; IFTA electronic reporting at $100,000 or more. Comptroller-administered taxes (sales and use, franchise, fuels, hotel, mixed beverage, insurance premium and others). All franchise tax No Tax Due reports must be filed electronically. There is no preparer mandate based on return count. Penalty: An additional 5% penalty for failure to report or pay electronically when required. source Public record

Transcripts and account records

No account transcript product was found. Confidential taxpayer records are requested through an open records request (Comptroller Record Request System online, email, fax, mail or in person); Form 01-137 lets an agent request and receive confidential tax and audit information by written open records request, telephone, email, fax or mail. A duplicate report can be requested through the automated line at 800-442-3453. Who can ask: The taxpayer, or an agent named on Form 01-137. Requests about a specific taxpayer should include the taxpayer's name and taxpayer number; no fixed list of years was found. Fee: Most information is provided at no charge; there may be a charge for requests that need substantial personnel time or programming. Turnaround: Depends on workload and complexity; if the Comptroller cannot respond within 10 business days it says when the information will be ready. Online for representatives: Requests can be made and tracked online in CRRS; no transcript view inside Webfile was found. request source Public record

Online access for professionals

eSystems/Webfile. File reports and make payments for taxes and fees of each taxpayer added to the user's profile. No separate practitioner portal: the user creates an eSystems profile and selects Add Taxpayer Access, entering the 11-digit taxpayer number and the taxpayer's Webfile number (RT, XT or FQ number printed on returns and notices). Any taxpayer account can be assigned to multiple Webfile user profiles. source Public record

Practitioner line

No practitioner line found. Sales and use tax 800-252-5555; franchise tax 800-252-1381; electronic reporting and Webfile 800-442-3453. Monday through Friday, 8 a.m. to 5 p.m. Central (office hours). source Public record

Recent and coming changes

• Form 01-137, Limited Power of Attorney, carries a new revision date, Rev. 10-26 source Public record

Texas has no personal income tax. No paid preparer registration program and no state preparer ID requirement were found on the Comptroller pages read; registration is set to false on that basis.

Not confirmed: How and where to submit Form 01-137 (email, fax, mail or upload) and any processing time: not stated on the form or the forms page read Whether IRS Form 2848 is refused for all purposes or only for private letter ruling requests A primary source confirming that Texas has no paid preparer registration rule (registration false rests on absence)

Rules for tax professionals in every state

Federal tax data sharing

10 IRS data-sharing agreements with agencies in Texas, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by Texas Workforce Commission source Public record; the workforce agency signed the IRS Questionable Employment Tax Practices (QETP) agreement in 2007 source Public record. How the IRS shares tax data with the states

Know something about Texas's systems, have a contract document, or had trouble with one of these portals? Send it in.