How to calculate Texas franchise tax in 2026 or 2027
First, determine whether your entity is subject to Texas franchise tax and find its Comptroller-defined total revenue for the accounting period. If the period is shorter than 12 months, divide that revenue by the days in the period and multiply by 365 to check the $2.65 million no-tax-due threshold. Annualized revenue of $20 million or less may qualify for EZ computation. The EZ method apportions actual period revenue to Texas and applies a 0.331% rate. The Long Form uses a different margin calculation, and the lower tax method depends on your records.