On June 15th, 2015, Texas permanently reduced the state’s franchise tax by 25% for reports originally due on or after January 1, 2016. Accordingly, the franchise tax rate will be .375% of taxable margin for entities engaged in retail or wholesale trades and the rate will be .75% of taxable margin for all other taxable entities.
Also for reports due on or after January 1, 2016, taxpayers with less than $10 million in gross revenues may elect the EZ Computation multiplying apportioned Texas revenue by .575%. Taxpayers with less than $20 million in gross revenues may also elect the EZ Computation multiplying apportioned Texas revenue by a slightly lower rate of .331%.