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 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?

Top Individual Income Tax Rate

Does Not Have an Individual Income Tax

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State and Local Individual Income Tax Collections per Capita

$0

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State and Local Tax Burden

8.0%

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Top Corporate Income Tax Rate

Does Not Have a Corporate Income Tax

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State Business Tax Climate Index Ranking

13

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State Sales Tax Rate

6.25%

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Average Local Sales Tax Rate

1.95%

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Combined State and Average Local Sales Tax Rate

8.20%

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State and Local General Sales Tax Collections per Capita

$1624

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State Gasoline Tax Rate (cents per gallon)

20¢

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State Cigarette Tax Rate (dollars per 20-pack)

$1.41

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

1.68%

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State and Local Property Tax Collections Per Capita

$2216

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Featured Articles

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Facts & Figures 2023: How Does Your State Compare?

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State Individual Income Tax Rates and Brackets for 2023

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State and Local Sales Tax Rates, 2023

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