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Taxes In Texas

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 corporate income tax but does levy a state gross receipts tax. Texas has a 6.25 percent state sales tax rate and an average combined state and local sales tax rate of 8.20 percent. Texas has a 1.47 percent effective property tax rate on owner-occupied housing value.

Texas does not have an estate tax or inheritance tax. Texas has a 20 cents per gallon gas tax rate and a $1.41 cigarette excise tax rate. The State of Texas collects $4,822 in state and local tax collections per capita. Texas has $10,906 in state and local debt per capita and has a 77 percent funded ratio of public pension plans. Overall, Texas’s tax system ranks 13th on our 2024 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 2024: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
Does Not Have an Individual Income TaxSee Full Study
State Local Individual Income Tax Collections per Capita
State and Local Tax Burden
8.6%Rank: 4See Full Study

Business Taxes

Top Corporate Income Tax Rate
Does Not Have Top Corporate Income Tax RateSee Full Study
State Business Tax Climate Index Ranking
13See Full Study

Sales Taxes

State Sales Tax Rate
6.25%Rank: 13See Full Study
Average Local Sales Tax Rate
1.95%See Full Study
Combined State and Average Local Sales Tax Rate
8.20%Rank: 14See Full Study
State and Local General Sales Tax Collections per Capita
$1664Rank: 10
State Gasoline Tax Rate (cents per gallon)
20¢Rank: 44
State Cigarette Tax Rate (dollars per 20-pack)
$1.41Rank: 30

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.47%Rank: 7
State and Local Property Tax Collections Per Capita
$2200Rank: 11

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