Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Texas Franchise Tax Rates, Thresholds and Wage and Cash Compensation Limits

Make sure you use the rate below that corresponds to the year for which you are filing. Texas franchise tax rates, thresholds and limits vary by report year.

Does your business qualify as a taxable entity primarily engaged in retail or wholesale trade? What are the definitions of retail trade and wholesale trade? Read our franchise tax FAQs for more information.

Report Year Franchise Tax Rates EZ Computation Report Rate No Tax Due Threshold Compensation Deduction
  Entities Primarily Engaged in Retail or Wholesale Trade All Other Entities     Wage and Cash Compensation Limit (Per Person)
2016 and 2017 0.375% 0.75% 0.331% $20 million $1,110,000 $360,000
2015 0.475% 0.95% 0.575% $10 million $1,080,000 $350,000
2014 0.4875% 0.975% 0.575% $10 million $1,080,000 $350,000
2012 and 2013 0.5% 1.0% 0.575% $10 million $1,030,000 $330,000
2010 and 2011 0.5% 1.0% 0.575% $10 million $1,000,000 $320,000
2008 and 2009 0.5% 1.0% 0.575% $10 million $300,000 $300,000

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.

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