Calculate Your Texas Franchise Tax
This calculator estimates Texas franchise tax for the 2026 or 2027 tax year using current Texas Comptroller of Public Accounts rates.
Report year: [2026 / 2027]
Annualized total revenue: [$________]
Texas gross receipts: [$________]
Gross receipts everywhere: [$________]
Method: [EZ Computation / Long Form]
Business type: [Retail or wholesale / Other]
Long Form margin: [$________]
Estimated tax: The calculator compares total revenue with the $2.65 million no-tax-due threshold, applies Texas apportionment where required, and multiplies the taxable amount by the selected tax rate. The result is a planning estimate, not a final tax calculation.
What Do the Inputs and Results Mean?
The inputs define the revenue, method, business status, and Texas activity used to estimate the tax.
Annualized total revenue is derived from specified federal return lines and permitted exclusions. It is not necessarily the same as book income.
The apportionment factor is Texas gross receipts divided by gross receipts everywhere. Qualified businesses using EZ Computation cannot claim margin deductions or tax credits.
Review the source records and seek qualified advice if the correct classification is uncertain.
The result is an estimated tax amount before credits, penalties, interest, or prior payments. A low-complexity case might involve one entity with straightforward receipts.
A medium-complexity case might involve deductions or multistate income. A high-complexity case might involve combined groups or tiered partnerships.
The estimate may be less accurate for more complex cases without professional tax advice.
How Is the Estimate Calculated?
The estimate follows formulas and tax rates published by the Texas Comptroller of Public Accounts and updated August 8, 2026.
For the 2026 and 2027 tax years, revenue of $2.65 million or less generally produces no tax due. EZ Computation applies 0.331% to apportioned revenue and is available when revenue does not exceed $20 million.
Long Form tax applies 0.375% for retail or wholesale businesses or 0.75% for other businesses to apportioned taxable margin. Long Form margin can be based on 70% of revenue, revenue minus cost of goods sold, revenue minus compensation, or revenue minus $1 million, subject to the applicable rules.
Rates and thresholds come from the Texas Comptroller’s Franchise Tax guidance. The tool does not determine nexus, exclusions, combined-group treatment, or qualified deductions.
Obtain tax advice before filing. Other tax tools can help organize records, but they do not replace the Texas Comptroller of Public Accounts instructions.
Worked Example
This example calculates an auditable EZ Computation tax estimate for a business with $4 million in revenue. It shows how apportionment affects the estimated tax and can help you compare methods.
Assume the business has $3 million in Texas receipts and $4 million in receipts everywhere. Its tax apportionment factor is 75%: $3 million divided by $4 million.
The apportioned revenue is therefore $3 million. Multiplying $3 million by 0.331% produces an estimated tax of $9,930.
Because the business’s revenue exceeds the no-tax-due threshold but remains below the EZ Computation Revenue Threshold, this method is potentially available.
The final return should reconcile this calculation with federal return records and the Texas Comptroller of Public Accounts instructions.
Frequently Asked Questions
How accurate is this calculator?
Accuracy depends on entering the correct revenue, receipts, classification, and margin data. Treat the result as an estimate for tax planning and seek qualified advice for complex tax facts.
Does the tool store my information?
This page should not request names, taxpayer numbers, or Internal Revenue Service (IRS) credentials. Confirm the site’s privacy notice before entering sensitive data into any online tool.
What should I do after calculating?
Check the current Franchise Tax Reports and filing requirements published by the Texas Comptroller of Public Accounts. Even when no tax is due, an entity may still need to file a Public Information Report or Ownership Information Report to maintain its account status.