Franchise tax rates, thresholds and deduction limits vary by report year.

... An entity, including a combined group or an entity with zero Texas gross receipts, can file using the EZ Computation if it has annualized total revenue of $20 million or less. An entity with zero Texas gross receipts need only calculate total revenue and enter zero for Texas gross receipts.

The Employee Information System (EIS) application is no longer available effective May 31, 2025. Please contact your agency Human Resource or Payroll representative for any questions or inquiries · To expedite the processing of your tax returns, please file electronically or use our preprinted ...

However, Corporations, LLCs, LPs, ... an Ownership Information Report. Texas has a Franchise Tax calculation method called "EZ Computation"....

November 1, 2025 - Multiply by the tax rate: For most businesses, the tax rate is 0.75%. However, if your taxable margin falls below a certain threshold, you may qualify for a reduced rate or exemption.

July 25, 2025 - Businesses below this threshold ... calculated based on a business’s margin, which can be determined using one of the following methods: Total Revenue Multiplied by 70% Multiply total revenue by 70% to determine the taxable margin....

If a combined group’s annualized ... group that is organized in Texas or has nexus in Texas must file a PIR or OIR. Annualized Revenue Threshold: $2,470,000 for reports due in 2024-2025......

The Employee Information System (EIS) application is no longer available effective May 31, 2025. Please contact your agency Human Resource or Payroll representative for any questions or inquiries · To expedite the processing of your tax returns, please file electronically or use our preprinted ...

March 7, 2025 - Keeping up with state filing requirements ensures compliance and maintains the company’s legal status. In 2025, businesses in Texas with annual revenue under $1.23 million are exempt from paying franchise tax but must still file a No Tax Due ...

3 weeks ago - This structure is why the computation method and apportionment matter so much in Texas. 2025 update: The No Tax Due threshold is $2,470,000 for reports originally due in 2024 and 2025 (up from $1.23M in 2022–2023).

June 23, 2025 - As of 2008, the Texas franchise tax is calculated from an entity’s margin. Margin is computed in one of the following ways (unless filing with EZ computation): ... (Revenue is calculated by subtracting statutory exclusions from the revenue reported on your company’s federal income tax return.) That number is then taxed accordingly (for 2024 and 2025...

When the accounting period upon ... for the E-Z Computation. To annualize total revenue, divide total revenue by the number of days in the period upon which the report is based, then multiply the result by 365. You can also use our Franchise Tax Online Calculator (PDF) ...

July 3, 2025 - As of 2025, the No Tax Due Threshold is $2.47 million in annualized total revenue. This means: If your business earns less than $1.23 million, you do not owe tax, but must file a No Tax Due Report (Form 05-163).

Franchise tax rates, thresholds and deduction limits vary by report year.

April 17, 2025 - These changes may impact your filing obligations and tax calculations. Franchise Tax Rates and Thresholds For 2025, the Texas franchise tax rates and thresholds are as follows: No Tax Due Threshold: $2.47 million

By entering your financial figures, the calculator helps estimate the tax liability, ensuring you remain ahead of filing deadlines. ... Texas offers several exemptions that might reduce the amount you owe. Familiarize yourself with these deductions to avoid overpaying. Understanding these calculations is crucial. It ensures that you file accurately, avoid potential penalties, and take full advantage of any available deductions. Timely filing is essential in avoiding penalties. For the 2025 tax year, most filings will need to be completed by a specific date determined by the state.

The Comptroller of Public Accounts ... and 2027. The rates are the same as for 2024 and 2025, while the no tax due threshold and the compensation deduction limit ......

November 12, 2025 - The State of Texas recently published revised Franchise (Margin) Tax rates, thresholds, and deduction limits for the 2024 and 2025 report years:

March 24, 2025 - As you can see in the above chart, Texas has a “no tax due threshold.” If you’re the type of entity generally required to pay franchise tax but sell beneath the Texas no tax due threshold, you’re not required to pay Texas franchise tax for that period.

See Tax Rates, Threshold, and Deduction Limits for information on current and historic tax rate, threshold, and deduction limit information. Franchise tax reports are due on May 15 each year.