Learn about property taxes
Property tax basics
Truth in Taxation
No state personal income tax
Texas is one of a handful of states without a personal income tax. Individuals do not file or pay state income tax in Texas. Business taxes still apply depending on entity type and activity.
How to handle business taxes
Texas does not have a state personal income tax, but businesses operating in the state may be subject to several state taxes depending on their structure, industry, and activity. The Texas Comptroller administers all state business taxes and provides online filing and payment options.
Sales and use tax
Most businesses that sell taxable goods or services in Texas are required to collect and remit sales and use tax. The state rate is 6.25%, and local taxing authorities can add up to 2% more, for a combined maximum of 8.25%. Comptroller’s site covers registration, rates, exemptions, and how to handle use tax on out-of-state purchases.
Do you own or plan on owning a franchise?
The Texas franchise tax is a privilege tax imposed on each taxable entity formed or doing business in Texas. Most LLCs, corporations, and other legal entities are subject to it. The tax is based on margin — calculated using revenue, compensation, or cost of goods sold. Sole proprietorships and most general partnerships are not taxable entities.
Motor vehicle taxes and surcharges
Texas imposes a motor vehicle sales and use tax on the purchase or use of a vehicle in the state. Additional surcharges may apply in certain circumstances. The Comptroller's motor vehicle tax page covers rates, exemptions, and how to calculate what you owe.
Tax filing and payment options
The Texas Comptroller offers online filing and payment options for most state taxes. You can also find all current Texas tax forms in one place. If you are unsure which taxes apply to your business, the Comptroller's site has guidance organized by tax type and business situation.