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?

State and Local Tax Ballot Measures to Watch on Election Day 2019

October 28, 2019

Texans to Vote on Amendment Prohibiting Income Tax

October 21, 2019

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2019

July 24, 2019

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

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