Taxation
Texas has no personal or corporate income tax.
Texas is a smart place to start and grow a business. With the 45th 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.
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Tax |
Description |
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Income |
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No Personal or Corporate Income tax in Texas
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Franchise |
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1.0% of margin for most taxable entities
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0.5% for qualifying wholesalers and retailers
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0.575% for entities with $10 million or less in total revenue
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Tax does not apply to sole proprietorships, general partnerships with individual owners, nonprofits or other specific entities. (see link below chart for detailed information)
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Property |
Ad Valorem Tax Rate FY 2012-2013*
City of Plano....................................0.4886
Collin County...................................0.0240
Plano ISD........................................1.3734
Collin County Community College....0.0863
Total..............................................$2.1883
*per $100 of assessed value
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Sales and Use |
State of Texas........................6.25%
City of Plano..........................1.00%
Dallas Area Rapid Transit......1.00%
Total......................................8.25%
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Hotel Occupancy |
City of Plano..................7%
State of Texas................6%
Total.............................13%
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Unemployment Insurance |
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2.7% general entry rate charged on first $9,000 of wages per employee
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Reassessed after six quarters and charged at own experience rate
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Effective tax rate ranges from 0.26% to 6.25%
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Workers Compensation |
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Not required by State
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Options include: self-insurance, state-operated Texas Workers' Compensation Insurance Fund or licenses private insurance company
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Maximum weekly benefit of $750
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For an overview of the Texas Franchise Tax, click here
Texas ranked 45th in the nation for tax burden
