tx-franchise-tax

Compute Texas franchise tax using four margin methods and EZ computation.

Updated Apr 11, 2026

Search Tags:#credits #filing #tax-calculation #texas #franchise-tax #margin-tax #no-tax-due

Ready to run

npx skills add https://github.com/eriksjaastad/state-business-tax-skills --skill tx-franchise-tax

💬 Prompt for ChatGPT / Claude Chat▼

Please help me install this Agent Skill.
Skill: tx-franchise-tax
Source: https://github.com/eriksjaastad/state-business-tax-skills/tree/main/skills/tx-franchise-tax
Command: npx skills add https://github.com/eriksjaastad/state-business-tax-skills --skill tx-franchise-tax

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes references (resource) components.

What problem does it solve?

The Texas Franchise Tax calculation is complex, with multiple margin methods, EZ computation, and threshold rules. This Skill automates the process to reduce manual errors and ensure consistent results.

Core Features & Use Cases

Compute taxable margin using four methods: 70% of revenue, revenue minus COGS, revenue minus compensation (subject to per-person cap), and revenue minus $1,000,000.
EZ Computation option for entities with total revenue ≤ $20M.
Apply no-tax-due threshold and filing requirements, and account for credits such as R&D and historic structures.
Understand nexus, due dates, and filing procedures for Texas franchise tax.
Use case: compare methods to minimize tax, determine eligibility for EZ computation, and prepare accurate filing data.

Quick Start

Provide total revenue, COGS, compensation, and entity type to compute Texas Franchise Tax liability using all margin methods and EZ, then return the lowest result with any applicable credits.

Frequently Asked Questions about tx-franchise-tax

High-intent search queries and answers about installing and using this skill.

FAQPage Schema

How do I calculate Texas franchise tax across multiple margin methods?▼

Texas franchise tax calculates your taxable margin by comparing four methods: 70% of revenue, revenue minus COGS, revenue minus compensation, and revenue minus $1M. It applies the appropriate rate to the lowest margin result and factors in applicable credits.

What is the EZ computation for Texas franchise tax and when can I use it?▼

The Texas franchise tax EZ computation is a simplified calculation option available if your total revenue is $20 million or less. It applies official Comptroller thresholds to streamline margin determination and tax filing.

How do I determine if my business owes no Texas franchise tax?▼

Your business owes no Texas franchise tax when total revenue falls below the official no-tax-due threshold set by the Texas Comptroller. Providing your total revenue allows the calculation to automatically determine if you meet this filing exemption.

How do I apply R&D and historic structure credits to my Texas franchise tax?▼

To apply R&D and historic structure credits to your Texas franchise tax, first determine your lowest taxable margin across the four calculation methods, then subtract the applicable credit amounts from the computed tax liability to reduce your final owed tax.

What inputs do I need to compute Texas margin tax for a retail entity?▼

Computing Texas margin tax for a retail or wholesale entity requires inputs including total revenue, COGS, compensation, entity type, and whether you use the EZ computation. These inputs determine the applicable rate and lowest taxable margin.

Does my out-of-state business need to file Texas franchise tax?▼

Yes, out-of-state businesses doing business in Texas must file franchise tax if they meet state nexus requirements. The calculation applies official Comptroller thresholds to determine your filing requirement and tax liability.