Head-to-head • Updated 2026
Texas vs Florida: $0 Threshold vs 5.5% Exemption States Compared
Two zero-income-tax states with totally different machinery: Texas margin/PIR vs Florida 5.5%-over-$50k plus the May 1 cliff.
Quick answers
- Should I choose Texas or Florida?
- Sub-threshold/simple: Texas. Profitable corps: Florida’s $50k exemption often beats margin math; both beat California by miles.
| Texas | Florida | |
| Small-entity cost | $0 + PIR paperwork | ~$139–$150 report |
| Profitable corp | EZ ~0.331% / margin options | 5.5% over $50k exempt |
| Paperwork pain | PIR + margin forms | May 1 cliff ($400 late) |
Cost to form and keep
| Formation | Annual minimum | Due | |
| Texas | $300 Certificate of Formation (LLC or corporation) | $0 under threshold | May 15 |
| Florida | $125 Articles of Organization (LLC); $70 Articles of Incorporation | $138.75–$150 report | May 1 ($400 late) |
Before registered-agent fees and before any tax on profit. Operating in a state means paying it no matter where the entity was formed.
Texas: what else to know
- No franchise tax at or below $2.65M of annualized revenue (2026–2027 reports), but the Public Information Report is still due every May 15.
- Above the threshold: 0.75% of margin (0.375% retail/wholesale) or 0.331% of revenue on the EZ Computation.
- Out-of-state entities registering in Texas pay a $750 registration fee.
Full rules: Texas no-tax-due & PIR.
Florida: what else to know
- The annual report opens January 1; filing after May 1 adds a $400 late fee.
- C-corps pay 5.5% of Florida net income above a $50,000 exemption; LLCs and most S-corps pay no Florida income tax.
- No personal income tax.
Full rules: Florida corporate tax.
Verdict
Sub-threshold/simple: Texas. Profitable corps: Florida’s $50k exemption often beats margin math; both beat California by miles.
Test where you actually owe tax with the nexus checker before choosing a home state.
Other head-to-heads
Sources
- State SOS / FTB / Division / Comptroller fee schedules; calculators on this site