TX HB1508

Repeals Chapter 171 of the Texas Tax Code, eliminating the state franchise tax (also known as the margin tax) on business entities

Taxable entities subject to the franchise tax as of December 31, 2025, will not be required to file a franchise tax report or pay tax on their taxable margin for that period

Existing law continues to apply to audits, deficiencies, redeterminations, and refunds of franchise taxes due or collected before the repeal until barred by statute of limitations

Preserves the status of entities that have had corporate privileges or certificates revoked, and maintains the ability of state officials to take enforcement action for pre-repeal violations

Takes effect January 1, 2026