Tax & Payroll
Texas Franchise (Margin) Tax Calculator (2026 report)
Estimate Texas franchise tax with the lowest of the four margin methods and the 2026 no-tax-due threshold.
Preparing your result…
What this calculator does
Estimates Texas franchise tax.
What your result means
Tax on the lowest margin.
Formula
Margin = lowest of 70% × revenue, revenue − COGS, revenue − capped compensation, revenue − $1M; tax = margin × apportionment × rate
The step-by-step working for your own numbers appears with the result above and in the PDF report.
Frequently asked questions
Symbols and assumptions
- M
- Taxable margin
- • 2026 threshold $2.65M; rates 0.375%/0.75%; comp cap $480,000.
Sources and review
Reviewed 2026-09-23 · Next review 2027-01-15
- • Comp cap approximated per employee; E-Z rate not applied.
- • Rules change annually.
- • Educational estimate, not tax advice.
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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