4 Methods of calculating Texas Franchise Tax on your business - Ansari Tax Law Firm

Texas Franchise Tax can be kind of tricky when you're trying to figure out exactly how much you owe so first of all if you're making over $2.47 million in gross sales that's the only time you really subject to it then there are four ways to calculate it in the first situation you take a gross sales and multiply it by 7 then multiply by the tax in the second situation it's gross sales minus compensation to directors and employees then times it by the tax in the third situation is grow sales Minus cost of good sold multiplied by the tax in the fourth situation is just gross sales minus $1 million then multiplied by the tax and even remember the tax rates are 375 for retail and wholesale and 75 for any other business so if you have any other business you take your grossy Sals use one of the four methods that I just mentioned multiply by 075 and that's your tax now if you're business does between $2.5 million to $20 million you're going to not take any deductions at all but you're going to multiply that gross amount by 331 thank you