Template

[State Name] [Tax Name] Calculator

Compute [State] [Tax Name] liability for self-employed individuals and small businesses.

When to Activate

• User mentions "[state] business tax", "[tax abbreviation]", "[department name] filing"
• Computing quarterly or annual tax liability
• Estimating credit eligibility
• Any business operating in [State]

What This Tax Is

[1-2 paragraph explanation of the tax: what it applies to (gross receipts, margins, net income), how it differs from federal income tax, and who must pay it. Cite the official state revenue department page.]

Rate Structure

[Table of current rates. Structure depends on the tax type:]

Gross receipts taxes (WA B&O, OH CAT, DE GRT): rates by classification or income tier.

Classification	Rate	Effective	Source
[Type A]	X.XXX%	[Date]	State Revenue Dept
[Type B]	X.XXX%	[Date]	State Revenue Dept

Margin-based taxes (TX Franchise): rates by entity type (standard, retail/wholesale, EZ).

Rate Type	Rate	Who Qualifies	Source
[Standard]	X.XX%	[Most entities]	State Revenue Dept
[Reduced]	X.XX%	[Qualifying entities]	State Revenue Dept

NAICS-based taxes (NV Commerce): rates by industry code.

[If rates are tiered, explain the tier structure and what determines which tier applies.]

Surcharge (if applicable)

[Document any surcharges for high-income businesses — thresholds, rates, effective periods, exemptions. Include Source column. Delete this section if the state has no surcharge.]

Credits and Exemptions

[Structure depends on the tax type:]

Gross receipts taxes with credits (WA B&O): small business credits with phase-out formulas.

Filing Frequency	Credit Amount	Source
[Monthly]	$X.XX	State Revenue Dept
[Quarterly]	$X.XX	State Revenue Dept
[Annual]	$X.XX	State Revenue Dept

Phase-Out Formula

[Pseudocode for credit calculation. Footnote each threshold with its source.]

Modified gross receipts taxes (OR CAT): cost subtraction options instead of credits.

Margin-based taxes (TX Franchise): multiple margin calculation methods — list each method, per-person caps, and EZ computation option. Also list exempt entity types.

Filing Requirements

Who Must File

[Thresholds, registration requirements. Cite the statute or official page.]

Filing Frequency and Due Dates

Frequency	Threshold	Due Date	Source
Annual	$X	[Date]	State Revenue Dept
Quarterly	$X	[Date]	State Revenue Dept
Monthly	$X	[Date]	State Revenue Dept

Nexus

[Describe what creates a tax obligation in this state: physical presence, economic thresholds, domicile. Cite the statute (RCW, ORC, etc.).]

• Physical presence — [description]¹
• Economic nexus — [threshold amount and conditions]¹

City/Local Tax Overlays

[Summary of whether cities in this state impose additional business taxes. If yes, reference the city overlay document in references/city-*.md. If no local taxes exist, state that explicitly.]

Calculation Process

[Adapt steps to the tax type. Common patterns:]

Gross receipts: Classification → Rate → Gross Tax → Credits → Net Tax → City Taxes Modified gross receipts: Commercial Activity → Subtraction (cost inputs vs labor) → Taxable Amount → Tax → City Taxes Margin-based: Total Revenue → Threshold Check → Choose Margin Method (or EZ) → Apply Rate → Credits → Net Tax

Step 1: [Determine base amount]

Step 2: [Apply deductions/subtractions if applicable]

Step 3: [Compute tax]

Step 4: [Apply credits]

Step 5: [Net tax due]

Step 6: Check for City/Local Taxes

Example

[Worked example with a realistic small business scenario. Use Decimal arithmetic.
Show each step. For margin-based taxes, show all margin methods and identify the lowest.]

Common Mistakes

1. [Mistake — with footnote to source if applicable]
2. [Mistake]
3. [Mistake]
4. [Mistake]
5. [Mistake]

References

Official [State Revenue Department Name]

• Tax Overview
• Rate Tables
• Credit/Exemption Info
• Filing Information
• Nexus Guide

Legislation

• Relevant statute

Output Format

When computing tax, present results as:

## [State] [Tax Name] — [Period]

[Adapt columns to the tax type. Examples:]

Gross receipts:
| Item | Amount |
|---|---|
| Gross Receipts | $XX,XXX.XX |
| Classification | [classification] |
| Rate | X.XX% |
| Gross Tax | $XXX.XX |
| Credits | ($XXX.XX) |
| **Net Tax Due** | **$XXX.XX** |
| Due Date | [date] |

Margin-based:
| Item | Amount |
|---|---|
| Total Revenue | $X,XXX,XXX.XX |
| Margin Method Used | [method] |
| Taxable Margin | $X,XXX,XXX.XX |
| Rate | X.XX% |
| **Net Tax Due** | **$XX,XXX.XX** |
| Due Date | [date] |

*City/Local Tax (if applicable):*
| Jurisdiction | Rate | Tax Due |
|---|---|---|
| [City] | X.XXX% | $XXX.XX |

Constraints

• MUST use Decimal arithmetic for all money calculations — never floats
• MUST cite sources when presenting rates or thresholds
• MUST note effective dates for any rates that changed recently
• MUST warn about local/city taxes where applicable
• MUST warn if gross receipts approach a rate tier threshold within 10%
• MUST warn and show extrapolation method when estimating annual liability from partial-year data

Disclaimer

This provides general tax guidance based on publicly available information. It is not legal or tax advice. Consult a qualified tax professional for your specific situation.

Footnotes

1. State Revenue Dept — Nexus Guide ↩ ↩²