Tax Laws in Texas.

Texas has no state individual income tax. Texas Constitution requires 2/3 legislative supermajority plus voter approval for any future income tax.

Texas has no traditional corporate income tax. The Texas Franchise Tax (margin tax) is the principal state-level business tax.

Imposed on businesses organized in Texas or doing business in Texas. Rate: 0.375% for retail/wholesale, 0.75% for most other businesses. Based on the "taxable margin" (lesser of total revenue minus cost of goods sold, total revenue minus compensation, 70% of total revenue, or total revenue minus $1M). No-tax-due threshold: $2.47 million gross revenue (2024).

6.25% state sales tax. Local option taxes up to 2% (combined maximum 8.25%). Food and food ingredients generally exempt.

Locally assessed. Among the higher effective property-tax rates in the U.S. Homestead exemption available. 2023 Texas Proposition 4 raised homestead exemption for school district taxes to $100,000.

Texas has no estate tax and no inheritance tax.