Free Tool

R&D Credit Calculator

Estimate what the federal research credit and the new Texas credit could return on the building, coding, designing, and problem-solving your business already does.

New to the credit? See how it works →

R&D Credit Estimator

Rough in your numbers below. The estimate updates as you go, using the 2026 federal and Texas rules.

$250,000per year
$0$500K$1M$1.5M$2M
60%of their time
0%25%50%75%100%
$15,000per year
$0$100K$200K$300K
$50,000per year
$0$250K$500K$750K$1M
$20,000per year
$0$100K$200K$300K
$200,000per year
$0$500K$1M$1.5M$2M
100%in Texas
0%25%50%75%100%
Estimated Combined Annual Credit
$0

How the math works

1

Add Up Qualified Spend

R&D wages (scaled by time actually spent on it), development supplies, 65 cents of every U.S. contract research dollar, and development cloud costs.

2

Subtract the Base

The credit rewards spending above half of your trailing three-year average. First-time claimants skip the base and use lower flat rates instead.

3

Apply the Rates

Federal: 14% of the excess, shown net of the standard reduced-credit election. Texas: 8.722% of the excess for in-state research. They stack.

Important: This calculator provides simplified estimates for educational purposes using the federal alternative simplified credit method and the Texas rules effective for reports due on or after January 1, 2026. Federal amounts are shown net of the Section 280C reduced-credit election, which must be made on a timely filed original return, as must the startup payroll tax offset election. The estimate assumes your Texas share of research was similar in prior years, does not model the regular federal credit method, the 10.903% Texas university-collaboration rate, controlled group rules, or credit usability limits, and the Texas credit is limited to 50% of franchise tax due (with a 20-year carryforward) unless you qualify for a refund (E-Z computation filers are excluded from the refund, and the Texas credit forms are due by November 15 of the report year). Qualification requires meeting the four-part test with documentation. Consult with a tax professional before claiming any credit.

Like what the math says?

An estimate only pays off if the claim is built to hold up. We handle qualification, documentation, and filing.

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