# Franchise Tax Calculation - Texas Franchise Tax

Texas Franchise Tax
Franchise Tax Calculation
Franchise Tax Calculation
RESET CALCULATION
The worksheet below calculates taxable margin on a separate entity basis. The worksheet
Annualized Revenue
Annualized Revenue
will calculate an amount of tax due based upon the amounts that are entered.
Report year
HOWEVER, if your annualized total revenue is less than or equal to \$1,110,000, or your
2017
tax due is less than \$1,000, you will owe no tax. All taxable entities must file a report, even
if no tax is due.
Accounting
month
day
year
year begin
date
If your annualized total revenue is \$20 million or less, you are eligible to use the E-Z
computation for calculating your tax. See the line 11 instructions for additional information.
Accounting
month
day
year
year end
date
SPECIAL NOTE TO TAXABLE ENTITIES THAT ARE PART OF AN AFFILIATED GROUP:
Taxable entities that are part of an affiliated group engaged in a unitary business must file
Total revenue for the report period
a combined report in lieu of individual reports. All members of a combined group must use
the same method to compute margin (i.e. cost of goods sold, compensation or 70%). See
instructions for additional information.
Annualized amount
Step 1. Margin
Step 1. Margin
1a. Total revenue ......................................................................................................................................
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1b. Cost of goods sold ...............................................................................................................................
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1c. Cost of goods sold margin - Line 1a minus Line 1b .............................................................................
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2a. Total revenue ........................................................................................................................................
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2b. Wages and cash compensation ............................................................................................................
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2c. Employee benefits ................................................................................................................................
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2d. Compensation margin - Line 2a minus (Lines 2b and 2c) ...................................................................
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3a. Total revenue .......................................................................................................................................
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3b. % margin - Equals 70% of Line 3a .......................................................................................................
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4a. Total revenue .......................................................................................................................................
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4b. Total revenue less \$1,000,000 - Line 4a minus \$1,000,000 ...............................................................
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5. Margin - Enter the least of Lines 1c, 2d, 3b or 4b ..............................................................................
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Step 2. Apportionment
Step 2. Apportionment
6. Texas gross receipts ............................................................................................................................
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7. Everywhere gross receipts ...................................................................................................................
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8. Apportionment factor - Line 6 divided by Line 7 ...............................................................................
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Step 3. Taxable Margin
Step 3. Taxable Margin
9. Taxable margin - Line 5 multiplied by Line 8 ......................................................................................
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Step 4. Tax Due
Step 4. Tax Due
10. Tax due before discount or credits
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- Multiply Line 9 by
.00375 for wholesalers and retailers or
.00750 for other taxable entities
11. Credits ..................................................................................................................................................
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12. E-Z computation (if eligible)
.......................................................
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- Line 3a times Line 8 times 0.00331
For the 2017 report year, discounts do not apply.
13. Discount ...............................................................................................................................................
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14. Net tax due - Line 10 minus (Lines 11 and 13) OR Line 12 minus Line 13.
(If less than \$1,000, you owe no tax. Cannot be less than zero.) .........................................................
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