Taxation

Texas has no personal or corporate income tax, making it a smart place to start and grow a business. With the 46th lowest tax burden in the country, companies can keep more of their profits. 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 2016-2017 per $100 of assessed value:
  • City of Plano: 0.478600
  • Collin County: 0.208395
  • Plano ISD: 1.439000
  • Collin County Community College: 0.081222
  • Total: $2.207217

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