Texas Tax Rates, Collections, and Burdens
How does Texas’s tax code compare? Texas does not have an individual income tax. Texas does not have a corporate income tax but does levy a gross receipts tax. Texas has a 6.25 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 8.20 percent. Texas’s tax system ranks 13th overall on our 2023 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Texas is no exception. The first step towards understanding Texas’s tax code is knowing the basics. How does Texas collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?
State Tax Data
Average Local Sales Tax Rate1.95%See Full Study
State and Local General Sales Tax Collections per Capita$1624Rank: 12
State Gasoline Tax Rate (cents per gallon)20¢Rank: 44
State Cigarette Tax Rate (dollars per 20-pack)$1.41Rank: 30
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