Texas Business Tax Calculator
Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Texas.
Why calculating business in Texas is different
Texas has no state income tax.
State Income Tax
None
Base Sales Tax
6.25%
State Min Wage
$7.25 / hr
Abbreviation
TX
Texas Business Interactive Tool
This calculator uses the latest 2026 data for Texas, including the minimum wage of $7.25 and the specific lack of a state income tax.
Frequently Asked Questions about Texas Business
What is the corporate tax rate in Texas?
Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Texas must also consider unemployment insurance taxes, sales tax collection (6.25%), and local business licenses.
Do LLCs pay tax in Texas?
LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 0% rate. However, Texas may also impose an annual LLC franchise fee.