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Tag: Texas margin tax
Texas Gross Receipts Tax Myths (Hint: It’s the Franchise Tax)
Many founders and out-of-state business owners believe Texas has a gross-receipts tax. While technically false, this myth exists because the Texas Franchise Tax – also known as the margin tax – functions similarly by taxing total revenue with limited deductions. Let’s debunk this and explain what Texas actually taxes in 2025. Is There a Gross-Receipts […]
PTET Copycat? Why Texas Has No Pass-Through Elective Tax
In 30+ U.S. states, pass-through businesses can elect to pay income tax at the entity level to bypass the $10,000 SALT deduction cap. But not in Texas. Why has Texas avoided adopting a PTET regime, and what does that mean for LLCs, S-Corps, and partnerships operating in the state? What is PTET? The Pass-Through Entity […]