Nonprofit Compliance Requirements in Texas
Texas has no state income tax; sales tax exemption requires a separate application; most nonprofits do not need charitable solicitation registration.
Looking to start a nonprofit in Texas? This page covers ongoing compliance. For the full formation guide, see How to Start a Nonprofit in Texas.
Compliance Scorecard
A quick overview of the compliance landscape in Texas.
Income Tax
No state income tax
TEXAS STATE INCOME TAX ON NONPROFITS - NO STATE INCOME TAX: Texas has no personal or corporate state income tax - Nonprofits do NOT owe state income tax (not applicable) - Federal 501(c)(3) exemption does not need separate Texas income tax exemption - Tax exemption not auto-granted: Organization must apply for federal exemption and Texas tax exemptions separately
FEDERAL 501(c)(3) APPLICATION - Form: IRS Form 1023 (full application) or Form 1023-EZ (streamlined)...
Sales Tax
Sales Tax Exemption Available
SALES TAX EXEMPTION STATUS - NOT AUTOMATIC: Nonprofits are NOT automatically exempt from sales tax - REQUIRED APPLICATION: Separate exemption application must be filed with Texas Comptroller of Public Accounts - Applies to: Purchases of taxable items when properly documented
EXEMPTION APPLICATION FORMS Organizations use different forms based on exemption type:
1. FORM AP-204 (Application for Exemption - Federal and All Others) - For 501(c)(3), (4), (8), (10), or (19) organizations...
Application Form: AP-204
Franchise Tax
Not Applicable
TEXAS FRANCHISE TAX ON NONPROFITS Texas NO LONGER imposes a franchise tax on most businesses (replaced by Texas Business & Occupation Tax as of January 1, 2022). However, tax code provisions still reference franchise tax exemptions for certain organizations.
FRANCHISE TAX EXEMPTION - Exempt organizations: 501(c)(3), (4), (8), (10), or (19) with federal exemption - Also exempt: 501(c)(5), (6), (7) [with federal exemption] - Application: File Form AP-204 (Federal and All Others) or Form AP-205...
Texas does not impose a franchise tax on nonprofit organizations.
Property Tax Exemption
Exemption May Be Available
PROPERTY TAX EXEMPTION STATUS - NOT AUTOMATIC: Nonprofits must apply - Jurisdiction: Local county tax appraisal district (not state-level) - Available to: Organizations primarily engaged in charitable activities
STEP 1: STATE COMPTROLLER DETERMINATION (Form AP-199) - Form: AP-199 (Texas Application for Organizations Engaged Primarily in Performing Charitable Functions and for Corporations that Hold Title to Property for Such Organizations)...
Annual Filings
Annual Report Required
PERIODIC REPORT (Form 802) - NONPROFIT CORPORATIONS - Requirement: Required by Texas Business Organizations Code Section 22.357 - Form: Form 802 (Periodic Report - Nonprofit Corporation) - Content: Names and addresses of all directors and officers - Frequency: Secretary of State may require report "not more than once every four years" - Due date: As specified in notice from Secretary of State (varies - NO STANDARD DATE) - Filing fee: $5...
Charitable Solicitation
Not Required
GENERAL SOLICITATION REGISTRATION - DEFAULT: Most charities and nonprofits are NOT required to register with Texas state - EXCEPTIONS: Specific organizations soliciting in specific ways MUST register
SPECIFIC SOLICITATION REGISTRATION REQUIREMENTS
1. LAW ENFORCEMENT TELEPHONE SOLICITATION ACT (LETSA) Filing Agency: Office of the Attorney General Who must register: Law enforcement-related charitable organizations engaging in telephone solicitation Registration requirements:...
Key Compliance Deadlines
| Item | Timing | Fee |
|---|---|---|
| Form 802 | When notified by Secretary of State | $5 |
Frequently Asked Questions
What are the key compliance deadlines for nonprofits in Texas?
The main federal deadline is Form 990 (or 990-EZ) due May 15 for calendar-year nonprofits. However, Texas may have specific state annual report deadlines, charitable solicitation renewal dates, and property tax exemption renewal periods. Check your state's Secretary of State website and relevant licensing boards for exact dates.
Do I need to register for charitable solicitation in Texas?
Many states require nonprofits to register before soliciting donations. The requirements, fees, and exemptions vary by state. Check with your state's Attorney General or Charity Regulation office to determine if registration is required in Texas and whether your organization qualifies for any exemptions.
What state tax exemptions are available to nonprofits in Texas?
Federal 501(c)(3) status doesn't automatically exempt you from all state taxes. State income tax, sales tax, and property tax exemptions each require separate verification or application. Some states grant automatic exemption; others require an application. Review this guide and contact your state's revenue department for specifics.
What happens if I miss a state filing deadline in Texas?
Consequences vary widely. Missing annual report deadlines can result in administrative dissolution of your nonprofit status, loss of liability protection, and legal complications. Some states impose fines, penalties, or require reinstatement fees. Missing charitable solicitation renewal deadlines may expose you to enforcement action.
How do I know if my nonprofit is in good standing in Texas?
Contact the Texas Secretary of State office — most states have an online business entity search. Also verify your federal 501(c)(3) status using the IRS Tax Exempt Organization Search. If you're unsure about your compliance status, a professional Governance Review can provide clarity and identify any issues.
Compliance deadlines for Texas?
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