Texas is one of nine states that do not impose an individual income tax in 2026, but residents still pay in various ways.

Texas has the second-largest economy in the United States (after California), with a state gross domestic product (GDP) of $2.7 trillion in 2024 (the most recent full-year data available). Much of ...

Unlike many states, Texas does not impose a traditional corporate income tax. Instead, it levies a franchise tax, which is a type of gross receipts tax. This means that businesses are taxed based on ...

Once you’ve determined that your business is subject to the Texas Franchise Tax, the next step will be to compute the amount of that tax. Easy, right? Unfortunately, as is often the case, it’s much ...

Almost no one likes the Texas franchise tax — for good reason. The tax is what is called a margins tax, owing to a 2007 reform that made the tax more complex, less efficient and more unfair. The ...

I discussed Texas franchise tax nexus in a prior post, which can be found here. However, there is a different (albeit similar) set of rules for Texas sales and use tax nexus. As with Texas franchise ...