The Texas Comptroller of Public Accounts administers the state’s major tax programs, including franchise tax, sales tax, and motor vehicle tax. For Texas business owners in 2026, understanding current Comptroller policies, exemptions, and filing requirements is essential to ensuring compliance and capturing available tax savings. This guide covers the key Comptroller-administered tax updates and programs relevant to Texas businesses in 2026.
Franchise Tax Updates
The Texas franchise tax is the state’s primary business tax, imposed on taxable entities doing business in Texas. Key 2026 considerations include:
- No-tax-due threshold: Entities with total revenue at or below the current no-tax-due threshold are not required to pay franchise tax but must still file a franchise tax report. The threshold is adjusted periodically; check the Comptroller’s website for the current amount.
- EZ computation: Entities with revenue below the EZ computation threshold may use a simplified calculation method with a reduced tax rate.
- Filing deadlines: Annual franchise tax reports are due May 15. Extensions are available, but estimated payments may be required.
- Cost of goods sold deduction: Manufacturers, wholesalers, and retailers can deduct cost of goods sold from revenue when calculating franchise tax liability.
- Compensation deduction: Alternatively, entities can deduct employee compensation from revenue, subject to caps per employee.
Sales Tax Exemptions
The Comptroller administers several sales tax exemptions that directly benefit Texas businesses:
- Manufacturing machinery and equipment: Qualifying manufacturing equipment is exempt from state and local sales tax. This is one of the most valuable exemptions for manufacturers. Manufacturing exemptions guide.
- Data center equipment: Qualifying data center equipment and electricity used in data centers may be exempt under the data center exemption program.
- Agricultural exemptions: Equipment, supplies, and machinery used directly in agricultural production are exempt from sales tax.
- Research and development: Depreciable tangible personal property used in qualified research may be exempt from sales tax.
- Freeport exemption: Inventory that is detained in Texas for 175 days or less before being shipped out of state is exempt from property tax in jurisdictions that have adopted the Freeport exemption. Freeport exemption guide.
HUB Certification
The Comptroller administers the Historically Underutilized Business (HUB) certification program, which provides certified businesses with access to state procurement opportunities. HUB certification is free and available to businesses owned by women, minorities, service- disabled veterans, and individuals residing in economically depressed areas. There are no changes to the fundamental HUB program structure in 2026, but the Comptroller continues to promote HUB vendor participation. HUB certification guide.
CMBL Registration
The Centralized Master Bidders List (CMBL) is the state’s vendor registration system for businesses that want to sell goods and services to Texas state agencies. Registration is free and enables businesses to receive bid notifications matching their commodity codes. In 2026, the Comptroller continues to maintain the CMBL as the primary gateway to state procurement opportunities. Comptroller resources guide.
Enterprise Zone Program
The Comptroller administers the Texas Enterprise Zone Program, which provides state sales and use tax refunds to qualified businesses that make capital investments and create jobs in economically distressed areas. The maximum refund amount depends on the level of capital investment and the number of jobs created or retained. Enterprise Zone guide.
Key Filing Dates in 2026
- January 20: Fourth quarter sales tax reports due (monthly and quarterly filers)
- April 20: First quarter sales tax reports due
- May 15: Annual franchise tax reports due
- July 20: Second quarter sales tax reports due
- October 20: Third quarter sales tax reports due
Find Your Tax Savings
Texas businesses have access to multiple tax exemptions, credits, and incentive programs administered by the Comptroller and other agencies. Our screening report identifies which tax programs may match your business. Start your free screening →