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

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State and Local Individual Income Tax Collections per Capita

$0

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State and Local Tax Burden

7.6%

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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

1.94%

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Combined State and Average Local Sales Tax Rate

8.19%

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State and Local General Sales Tax Collections per Capita

$1259

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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

1.69%

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State and Local Property Tax Collections Per Capita

$1872

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Featured Articles

Net Operating Loss Provisions: State Treatment and the Economic Benefits

January 13, 2022

2022 State Business Tax Climate Index

December 16, 2021

Where Do People Pay the Most in Property Taxes?

September 1, 2021

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021

Sales Tax Rates in Major Cities, Midyear 2021

August 18, 2021

Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases

May 25, 2021

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2022 State Business Tax Climate Index

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Cigarette Taxes and Cigarette Smuggling by State, 2019

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Where Do People Pay the Most in Property Taxes?

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Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021

Sales Tax Rates in Major Cities, Midyear 2021

August 18, 2021

Compare Tobacco Tax Data in Your State

July 22, 2021

Does Your State Have a Sales Tax Holiday?

July 21, 2021

What Are the Chances Your State Withholds Much of Your Lottery Winnings?

June 9, 2021

Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases

May 25, 2021

Location Matters 2021: The State Tax Costs of Doing Business

May 5, 2021

Imposing New Taxes on Peer-to-Peer Car Sharing Will Not Help Texas Economic Recovery

April 19, 2021

State Conformity to Federal Pandemic-Related Tax Provisions in CARES and ARPA

April 1, 2021

State and Local Tax Burdens, Calendar Year 2019

March 18, 2021

Does Your State Have a Gross Receipts Tax?

March 10, 2021

Facts and Figures 2021: How Does Your State Compare?

March 10, 2021