Taxes in Texas

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Texas’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

Does Not Have an Individual Income Tax

See Full Study

State and Local Individual Income Tax Collections per Capita

$0

Click for a comparative tax map!

State and Local Tax Burden

7.6%

Click for a comparative tax map!
See Full Study

Tax Freedom Day

April 5

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

Does Not Have a Corporate Income Tax

See Full Study

State Business Tax Climate Index Ranking

15

See Full Study

State Sales Tax Rate

6.25%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

1.94%

See Full Study

Combined State and Average Local Sales Tax Rate

8.19%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$1148

State Gasoline Tax Rate (cents per gallon)

20¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$1.41

Click for a comparative tax map!

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

1.62%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$1762

Featured Articles

2019 State Business Tax Climate Index

September 26, 2018

Related Articles

Texas Tackles Property Tax Concerns, Can Square Up to Margin Tax

July 1, 2019

Texas Legislature Approves Constitutional Amendment to Prohibit Individual Income Taxation

May 22, 2019

Texas Legislature Abandons Tax Swap, Advances Property Tax Cap

May 16, 2019

Why State-for-Local Tax Swaps Are So Hard to Do

April 18, 2019

Texas Considers Options for Reducing Property Taxes

April 15, 2019

Texas Proposal to Tax Peer-to-Peer Car Sharing is Creative but Misses the Mark

April 11, 2019

Texas Explores Remote Sales Tax Simplification Option

April 2, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

2019 State Business Tax Climate Index

September 26, 2018

Testimony: Texas Policy Options for Tax Reform

April 19, 2018

Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?

September 21, 2017

Do Hurricane Harvey Victims Deserve Less Federal Aid Because Texas is a Low-Tax State?

September 7, 2017

Lunch Links: House Ways and Means Deep in Planning for Tax Reform; Chicago Next Up to Vote on Soda Tax; Seattle and L.A. Vote in Taxes for Transportation Improvements; San Diego Rejects Tax for NFL Stadium

November 10, 2016

Lunch Links: Toll Roads Reduce Non-Tolled Traffic, KU Coach Uses Kansas Tax Break, Labor Department Overtime Rule

May 18, 2016

Lunch Links: IRS Auditing by Telephone, President Obama vs. Senator Paul on Tax Treaties, Jamba Juice Flees California

May 9, 2016

Businesses Love Texas, Except this One Tax that Holds the State Back

January 8, 2016

Voters in Five States Decide Tax-Related Ballot Initiatives

November 4, 2015

Voters in Five States Consider Tax-Related Initiatives

November 2, 2015

Texas Legislature Passes $2.56 Billion Tax Cut Package

June 1, 2015

Major Tax Actions in Texas, Illinois, Nevada, and Louisiana

May 29, 2015