Texas tax payment plan with the Comptroller
Texas calls this a payment plan and each case is reviewed separately by the Comptroller’s local field offices. Your account stays delinquent while you pay and a lien is filed.
- Tax on individual income
- Prohibited
- How each plan gets decided
- Every case stands alone
- Interest for 2026
- Each year: 7.75%
- Greatest late penalty
- 20% of the tax amount
The collection process is not stopped by a Texas plan
What surprises people most in Texas is what a payment plan does not change. To avoid undue hardship, the Comptroller reviews each plan case by case. After you sign, the page about past due taxes still says your account is delinquent. But some collection actions continue:
- Billing notices keep coming
- A tax lien is still filed against you
- State warrants owed to you remain on hold
Without income tax, what do Texans owe?
Under the Texas Constitution, Article 8, the legislature cannot tax what individuals earn as net income. State tax debts come from other taxes collected by the Comptroller.
The most common one is sales and use tax. The Comptroller’s sales tax page gives the 6.25% state rate. Cities and counties also add their own rates. A business formed or operating in Texas may also owe Texas franchise tax. This is a privilege tax. Its annual report is due May 15. The no-tax-due threshold is $2,650,000 in revenue for 2026 and 2027.
How can you request a payment plan from the Comptroller?
You cannot submit requests through an online form. Contact the Comptroller field office nearest you and describe your situation. Keep the number for your 11-digit Taxpayer ID close at hand.
It also helps to file every missing report first. When you do not file a report, the Comptroller sends an estimated bill based on its own figures. Filing the actual return replaces that estimate.
Penalties and interest on late Texas tax
As time passes, penalties grow. If you pay 1 to 30 days late, an extra 5% is added. If a payment is more than 30 days late, an added 10% applies. Another 10% is added for payment after the date listed on the Notice of Tax/Fee Due. The total then reaches 20%. Most late reports also receive a $50 late filing penalty, even when no tax is owed.
Interest starts on the 61st day following a report’s due date. The Comptroller’s interest page uses the prime rate plus 1% and the rate is set at the start of each year. For 2026, the annual rate comes to 7.75%.
If you fail to pay Texas tax
A lien is required by state law to secure every past due tax, penalty and interest amount. It can hurt your credit. The Comptroller may also require a security bond. It can freeze or seize assets that are not exempt. After a hearing, it can also suspend permits or licenses. Criminal charges may also be filed by the Comptroller.
Private collection firms with contracts from the Comptroller also send bills and the state continues to receive those payments. After the Comptroller has made every effort it can, the account may transfer to the Attorney General’s Office. The Comptroller stops handling the account after that point.
Penalty waivers and the addition of a federal bill
The Taxpayer Bill of Rights permits an online waiver request for penalties or interest related to a late report or payment. The Comptroller follows the rule set out in Rule 3.5. File every report and pay all tax first. Only then can you get a waiver.
A debt owed to the IRS has its own path. It stays separate from any Comptroller plan. If a Texas business owes both, it keeps a state arrangement plus a separate installment agreement for the IRS.
States located nearby
Do you owe both the Comptroller and the IRS?
Are you behind on Texas sales or franchise tax and also owe the IRS? A licensed tax pro can build a realistic plan for both during a free call.
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