In Texas and the Austin region, we've formalized a friendly attitude into a business climate that is truly user friendly.
The tax structure is fair, competitive and designed to make companies feel welcome. Texas is one of only a handful of states with no individual income tax (a very attractive environment for transferringemployees). Total state and local taxes averaged $3,440 per person in 2010, 16% less than the national average. Similarly, state and local taxes in Texas are low relative to income, amounting to $90 per $1,000 of personal income, compared to the national average of $103 per $1,000. The State of Texas does not impose a personal or corporate income tax. The state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%.
Imagine life less taxing in San Marcos, TX. Our tax structure is business-friendly and makes the state an ideal location to operate your company.
State: 6.25% (.0625)
City: .25% (.0025) - 2% (.02), depending on local rate.
County: .5% (.005) - 1.5% (.015), depending on local rate.
Transit: .25% (.0025) - 1% (.01), depending on local rate.
Special Purpose Districts: .125% (.00125) - 2% (.02), depending on local rate.
Local Tax Rates
Local tax rates are established by individual cities, counties, school districts and other special districts, and are administered by the County Tax Assessor Collector.
State Tax Rates
The Texas Comptroller's office serves the state by collecting more than 60 separate taxes, fees and assessments, including local sales taxes collected on behalf of more than 1,400 cities, counties and other local governments around the state.
State Sales and Use Tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined total of state and local taxes of 8.25% (.0825).
For more information on State tax rates and other tax related information for the state of Texas, go to the Texas Comptroller of Public Accounts website.