Texas Franchise Tax Report (Form 05-158) – Complete Calculator
Last reviewed: 2025-11-03
Use the Texas Tax Form Calculator Form 05-158: Texas Franchise Tax Report (Form 05-158) – Complete Calculator as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Texas state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Overview
Compute the Texas Franchise Tax Report (Form 05-158) automatically with all 2026 parameters: margin (70% revenue, revenue−COGS, revenue−compensation, revenue−$1,000,000), apportionment, and credits. The current no tax due threshold is $2,470,000.
Entry guidance
- Provide total revenue and deductions (COGS/compensation) as defined under Texas Tax Code §§171.1011–171.1013.
- Enter everywhere and Texas receipts to determine the apportionment factor (Line 5 ÷ Line 4).
- Select Retail/Wholesale if applicable (rate 0.375%); all other businesses use 0.75%.
- EZ computation applies when revenue ≤ $20,000,000 at 0.331% rate (credits not permitted).
| 1 | Total revenue (worldwide) | |
| 2 | Cost of Goods Sold (COGS) | |
| 3 | Compensation deductions | |
| 4 | Everywhere gross receipts | |
| 5 | Texas gross receipts | |
| 6 | Apportionment factor (Line 5 ÷ Line 4) | % |
| 7 | Industry type (check if retail/wholesale) | |
| 8 | EZ Computation election (eligible ≤ $20,000,000) | |
| 9 | Margin computation (Line 1 − deductions / options) | |
| 9a | 70% of total revenue (Line 1 × 70% option) | $ |
| 9b | Total revenue − COGS (Line 1 − Line 2) | $ |
| 9c | Total revenue − Compensation (Line 1 − Line 3) | $ |
| 9d | Total revenue − Fixed Deduction ($1,000,000) | $ |
| 10 | Chosen margin (min of 9a–9d) | $ |
| 11 | Apportioned margin (Line 10 × Line 6) | $ |
| 12 | Applicable rate (Retail/Wholesale 0.375% or Standard 0.75% ) | |
| 13 | Pre-credit tax (Line 11 × Line 12) | $ |
| 14 | Credits (Long Form only) | |
| 14a | R&D Credit (05-178) | |
| 14b | Historic Structure Credit (05-180) | |
| 14c | Other Credits (05-160) | |
| 15 | Total credits (sum 14a–14c) | $ |
| 16 | Tax due (Line 13 − Line 15) | $ |
| 17 | Computation method | |
| 18 | Total revenue (Line 1 copy) | $ |
Computation notes
- Margin = minimum of (70% × total revenue), (revenue−COGS), (revenue−compensation), (revenue−$1,000,000).
- Apportionment factor = Texas receipts ÷ everywhere receipts.
- No tax due if total revenue ≤ $2,470,000.
- Tax less than $1,000 results in $0 due but filing still required.
Last reviewed: 2025-11-03: If you believe this form requires an update, please contact us.
Filing reminders
Attach supporting schedules (05-160, 05-178, 05-180) when claiming credits. Combined groups must report affiliates. EZ filers cannot apply credits.
Quick Access Tools
Frequently Asked Questions
Do I pay less tax if I work remotely from Texas?
Yes, if your employer is based in Texas. However, if you work for an out-of-state company, their state may withhold income tax.
Do bonuses get taxed differently in Texas?
Only at the federal level. Texas doesn’t add state tax to bonuses.
What if I earn income from another state while living in Texas?
You may owe that state’s taxes on income sourced there, but Texas will not tax it again.
Is overtime taxed differently in Texas?
No—overtime is taxed federally the same as regular wages.
Can I calculate self-employment taxes in Texas?
Yes—use Schedule C and FICA Calculator to estimate SE tax.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.