Texas has no personal or corporate income tax, making it a smart place to start and grow a business. The state’s low cost business environment has helped it to become the nation’s leader for job and population growth.
Taxes & Descriptions
Income
There is no personal or corporate income tax in Texas.
Franchise
- 0.75% of margin for most taxable entities or
- 0.375% for entities primarily engaged in retail or wholesale trade
- 0.331% for entities with $20 million or less in total revenue
- Tax does not apply to sole proprietorships, general partnerships with individual owners, nonprofits or other specific entities
Property
Ad valorem tax rate FY 2020-2021 per $100 of assessed value:
- City of Plano: 0.4482
- Collin County: 0.174951
- Plano ISD: 1.33735
- Collin County Community College: 0.081222
- Total: $2.041723
Sales & Use
- State of Texas: 6.25%
- City of Plano: 1%
- Dallas Area Rapid Transit: 1%
- Total: 8.25%
Hotel Occupancy
- City of Plano: 7%
- State of Texas: 6%
- Total: 13%
Unemployment Insurance
- 2.7% general entry rate charged on first $9,000 of wages per employee
- Reassessed after 6 quarters and charged at own experience rate
- Effective tax rate ranges from 0.36% to 6.36%
Workers Compensation
Not required by state. Options include:
- Self-insurance
- State-operated Texas Workers' Compensation Insurance Fund
- Licensed private insurance company
- Maximum weekly benefit of $938