State & Local Taxes & Incentives

In Texas and the Austin region, we've formalized a friendly attitude into a business climate that is truly user friendly. The tax structure is fair, competitive and designed to make companies feel welcome. Texas is one of only a handful of states with no individual income tax (a very attractive environment for transferring employees). Total state and local taxes averaged $4,126 per person in 2015, 15.5% less than the national average. Similarly, state and local taxes in Texas are low relative to income, amounting to $88 per $1,000 of personal income, compared to the national average of $101 per $1,000.


  • Taxes & Incentives Overview

    In Texas and the Austin region, we've formalized a friendly attitude into a business climate that is truly user friendly. The tax structure is fair, competitive and designed to make companies feel welcome.

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  • Corporate Franchise Tax

    Texas has no corporate income tax. However, Texas does have a franchise tax, which took a new form in 2008 . . .

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  • Property Tax

    Local governments and special taxing districts levy taxes on real and tangible personal property. Texas has no state property tax.

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  • Sales & Use Tax

    The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. Cities, counties, and transit authorities may add to the sales tax rate up to a maximum combined state and local rate of 8.25%.

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  • Unemployment Insurance & Workers’ Compensation

    Employer costs for unemployment insurance and workers' compensation are relatively low in Texas.

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  • Texas Enterprise Zone Program

    The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state.

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  • Tax Exemptions & Credits

    The following sections detail the available tax exemptions and credits available to qualified companies who conduct business locally.

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  • Training Programs

    The following sections detail the training programs available locally.

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  • Financing Programs

    The following sections detail state and local economic development grant and loan programs.

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  • Foreign Trade Zone 183 of Central Texas

    A Foreign Trade Zone (FTZ) is an area within the United States which is designated by the federal government as outside of U.S. Customs territory.

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  • Other Assistance

    The following section details other assistance programs available locally.

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  • Local Incentives Summary

    The following section details a summary of local incentives.

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