Last week, the Tax Policy Center held an event called “Measuring the Distribution of Federal Spending and Taxes.” At this event, Gerald Prante presented his findings from the Tax Foundation study called “A Distributional...
The facts on Texas’ Tax Climate
0%Individual Income TaxNone
N/ACorporate Income TaxGross Receipts Tax
$1562Property TaxCollections Per Capita
Texas's Individual Income Tax System
Texas levies no individual income tax, joining seven other states with the same policy: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Texas's Corporate Income Tax System
Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Texas Sales and Excise Taxes
Texas levies a 6.25% general sales or use tax on consumers, which is above the national median of 6%. The average local sales tax rate is an additional 1.89%. Texas's state and local governments collect $1003 per person in general sales taxes and $528 per person in excise taxes, for a combined figure of $1531, which ranks 14th highest nationally. Texas's gasoline tax stands at 20¢ (13th lowest nationally), while its cigarette tax stands at $1.41 (23rd highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Texas Property Tax Collections Relatively High
Texas's state and local governments collected approximately $1562 per person in property taxes, which ranks 14th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 10th in Texas
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Texas taxpayers worked until April 10th (20th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New Mexico, April 3rd (ranked 5th earliest nationally); Oklahoma, April 6th (ranked 9th earliest nationally); Arkansas, April 7th (ranked 12th earliest nationally); and Louisiana, March 29th (ranked 2nd earliest nationally).
Texas's State and Local Tax Burden Below National Average
Texas's 2010 tax burden of 7.93% ranks 6th lowest out of 50 states, and is below the national average of 9.9%. Texas's taxpayers pay $3104 per capita in state and local taxes.
Texas's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Texas's 2014 Business Tax Climate Index Ranks 11
Texas ranks 11th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New Mexico, 38th, Oklahoma, 36th, Arkansas, 35th, and Louisiana, 33rd.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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