Tax Foundation Forum: Making Sense of Profit Shifting has reached its midpoint. In this halftime report, we provide a synopsis of the first nine of the 18 interviews in the series. This two-part review summarizes the key...
The facts on Texas’ Tax Climate
0%Individual Income TaxNone
N/ACorporate Income TaxNone
$1559Property 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
Texas levies no corporate income tax, joining six other states with the same policy: Nevada, Ohio, South Dakota, Texas, Washington, and Wyoming.
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 5.95%. The average local sales tax rate is an additional 1.8%. Texas's state and local governments collect $1182 per person in general sales taxes and $573 per person in excise taxes, for a combined figure of $1755, which ranks 13th highest nationally. Texas's gasoline tax stands at 20¢ (9th lowest nationally), while its cigarette tax stands at $1.41 (24th 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 $1559 per person in property taxes in 2012, which ranks 14th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 13th 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 2014, Texas taxpayers worked until April 13th (19th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New Mexico, April 8th (ranked 7th earliest nationally); Oklahoma, April 11th (ranked 15th earliest nationally); Arkansas, April 12th (ranked 17th earliest nationally); and Louisiana, March 30th (ranked earliest nationally).
Texas's State and Local Tax Burden Below National Average
Texas's 2011 tax burden of 7.5% ranks 4th lowest out of 50 states, and is below the national average of 9.8%. Texas's taxpayers pay $3088 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 2015 Business Tax Climate Index Ranks 10
Texas ranks 10th 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, 32nd, Arkansas, 39th, and Louisiana, 35th.
State Business Tax Climate Index (full study)
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