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
What about unemployment taxes in Texas?
Employers pay state unemployment tax (SUTA), but it doesn’t affect employee paychecks.
How does the absence of income tax affect retirees in Texas?
Retirees benefit since pensions, IRAs, and Social Security are untaxed at the state level.
What is the Texas franchise tax rate?
For 2025, typically 0.375% for retail/wholesale and 0.75% for other businesses over $2.47 million in revenue.
Does Texas tax Social Security benefits?
No. Social Security benefits are only federally taxable, if at all.
Where can I find local Texas tax rates?
See the Texas Tax Calculator or your local county website for property and sales rates.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.