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Learn about 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 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 base state sales tax rate is 6.25%. Local taxing authorities can add up to 2% more, for a combined maximum of 8.25%. The Comptroller’s site has information about applying for a sales tax permit, local sales and use tax rates, payment due dates and options, and more. 

Franchise tax

Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax. This includes corporations, LLCs, and other legal taxable entities. The Comptroller’s site has information about what entities are subject to franchise tax, how the tax rate is calculated, available credits, due dates, filing methods, and more.

Motor vehicle taxes and surcharges

When you buy a vehicle from a dealer or private party, Texas imposes a 6.25% motor vehicle sales tax on the purchase price. For private party sales, the taxable value is based on the Standard Presumptive Value (SPV), which is the state’s estimated value of the vehicle. Additional surcharges may also apply in certain circumstances. The Comptroller's site 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 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.