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Premium Tax - Licensed Captive Insurance Companies

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Note: An unlicensed captive insurance company that insures solely the risks of its parent and affiliated companies must complete Form 25-108 (PDF) and its supplement, Form 25-123 (PDF).

Gross taxable premium receipts: Enter the total gross amounts of premiums; membership fees; assessments; dues; revenues; and any other considerations received for insurance written for the tax year.

The tax applies to any kind of insurance written by the captive insurance company in a calendar year on each kind of property or risk regardless of the location of the property or risk.

Do not deduct premiums paid for reinsurance, and do not include premiums received from another authorized insurer for reinsurance.

Dividends paid to policyholders and returned premiums: These are not included in taxable premium receipts. Do not enter a minus sign in front of the dividend amount unless negative dividends are reflected in the company's Captive Annual Report Form (CARF) that the Texas Department of Insurance requires. Returned premiums should be subtracted from gross premium, but by their nature, will never be negative.

Credits: A premium tax credit is allowed for examination fees paid to the Texas Department of Insurance during the calendar year for which the tax is due, subject to the limitations specified in §803.007, Texas Insurance Code.

Tax waiver: Enter the total amount of premium tax for which the Commissioner of Insurance granted a waiver. Email the order or other documentation received from the Texas Department of Insurance or send a copy to

Comptroller of Public Accounts
Revenue Accounting Division
P.O. Box 13528
Austin, TX 78711-3528.

Tax Due:

  • Premium tax rate: .5% (one-half of one percent)
  • Minimum tax due: $7,500 (applies if a captive insurer does not write premiums in a tax year)
  • Maximum tax due: $200,000
  • Net premium tax due: cannot be less than zero, but the premium tax due and payable may be less than $7,500 if the Commissioner of Insurance has granted a tax waiver

Prior payments for premium tax: Webfile automatically populates this field, which represents prepayments of premium tax made for the current tax year.

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