On June 15^th, 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%.