Texas Franchise Tax Margin Calculation

Calculate Texas franchise tax liability using the four allowable margin methods (total revenue minus COGS, compensation, 30%, or 70%), the 0.375%–0.75% rate, and EZ computation for small businesses

Each component has a specific meaning:

• Four allowable margin methods (total revenue minus COGS — The four allowable margin methods (total revenue minus cogs recorded for the scenario being assessed.
• Compensation — The compensation recorded for the scenario being assessed.
• 30% — The 30% recorded for the scenario being assessed.
• Or 70%) — The or 70%) recorded for the scenario being assessed.
• 0 — The 0 recorded for the scenario being assessed.

Note: Interpret the tx franchise tax result against the thresholds and context described above.

Enter the four allowable margin methods (total revenue minus COGS, compensation, 30%, or 70%), 0 for the scenario you are assessing. Calculate Texas franchise tax liability using the four allowable margin methods (total revenue minus COGS, compensation, 30%, or 70%), the 0.375%–0.75% rate, and EZ computation for small businesses. Use the tx franchise tax result to inform your calculation.