Taxation

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 2018-2019 per $100 of assessed value:

  • City of Plano: 0.460300
  • Collin County: 0.180785
  • Plano ISD: 1.439000
  • Collin County Community College: 0.081222
  • Total: $2.1613

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 0.26% to 6.25%

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 $750
  

2015 State Business Tax Climate Index- Tax Foundation
Texas comes in at #10 for best business tax climates! 

2015 State Business Tax Climate Index Ranks and Component Tax Ranks