Crude Oil Production Tax
A tax is imposed on the production of crude oil in Texas at its market value.
Enhanced Web tools available
The crude oil and natural gas Web inquiry system has a taxpayer tool to help taxpayers reconcile individual report periods.
Crude Oil and Natural Gas Reports and Procedures
The Comptroller's office implemented changes to streamline the processing or your transfer and refund requests. For more information, visit our Frequently Asked Questions for reports, transfers and refunds due on or after Jan. 1, 2008.
Rate Details and Other Information
- Oil production tax: 4.6% (.046) of market value of oil.
- For report periods September 2001 and later, the taxable barrels are subject to the Regulatory Tax and Fee Assessment amount of .008125. This amount consists of 3/16 of a cent ($.001875) per barrel + 5/8 of a cent ($0.00625) per barrel = .008125
- For report periods prior to September 2001, the taxable barrels are subject to the Regulatory Tax and Fee Assessment amount of .005. This amount consists of 3/16 of a cent ($.001875) per barrel + 5/16 of a cent ($.003125) per barrel = .005
- Reduced Oil Production Tax Rates for Certified Exemptions:
- Enhanced Oil Recovery Exemption (EOR) 2.3% (.023) of market value of oil;
- Two Year Inactive Well Exemptions 0.0% (.000) of market value of oil.
Monthly: 25th day of the month following the production month.