taxes

Retaliatory Tax

Who is responsible for this tax?

Foreign and alien insurers that are licensed by the Texas Department of Insurance are responsible for this tax. Any retaliatory tax due is determined by comparing the aggregate taxes, fees and assessments their states of organization impose to the aggregate taxes, fees and assessments Texas imposes.

Rates

If the aggregate tax, assessment and fee burden of another state exceeds the aggregate burden in Texas based on the same amount of premium writings, Texas imposes a retaliatory tax equal to the difference between the states.

Due Date

Yearly: March 1 for the previous calendar year (for example, March 1, 2015, for policies written in 2014).

Penalties and Interest

Penalties

• If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
• If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.

Interest

• Past due taxes are charged interest beginning 61 days after the due date.
• To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $500,000

Select one of these reporting methods:

• Webfile
• Tax Forms

Select one of these payment methods:

• Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard® and Visa)
• TEXNET
• Check

$500,000 or more

Select one of these reporting methods:

• Webfile
• Tax Forms

TEXNET is the only acceptable payment method.

Additional Resources

• Texas Department of Insurance
• All Insurance Taxes, Assessments and Fees