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. Texas is one of only a handful of states with no individual income tax (a very attractive environment for transferring employees).

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Taxation

Total state and local taxes averaged $4,710 per person in 2019, 17% less than the national average. Similarly, state and local taxes in Texas are low relative to income, amounting to $89 per $1,000 of personal income, compared to the national average of $100 per $1,000.

State & local taxes per capita 2019

Tax burden 2019

TEXAS
UNITED STATES
State & local taxes per capita, total
$4,710
$5,664
Property
2,098
1,757
Sales & gross receipts
2,246
1,951
Individual income
1,363
Corporate income
200
Other
366
393
State & local taxes per $1,000 of personal income
89
100

Source: U.S. Bureau of the Census, State & Local Government Finances.

Texas incentive opportunities

The State of Texas offers a variety of incentive programs designed to make capital more available for businesses looking to expand or locate in the state, as well as for companies already doing business in Texas. Committed to retaining its "business friendly" reputation, Texas stands ready to help businesses expand, and become globally competitive.

Throughout Central Texas, local governmental and economic development organizations work hand-in-hand to develop competitive incentive packages for qualified companies. Projects are generally reviewed on a case-by-case basis with consideration given to type of industry, number of employees, average wages, capital investment, financial strength, community involvement and other factors.

The region’s incentives available for investment and job creation are competitive with peer regions anywhere in the nation.

Texas ranks No. 1 in annual business climate survey of corporate site selection executives. (Site Selection, 11/20)

Texas is No. 4 in annual Top States for Doing Business ranking based on annual survey of site selection consultants. (Area Development, Q3/20)

Texas has the Best Business Climate. (Business Facilities, 7/29/20)

For the 16th year in a row, Texas was named the Best State for Business. (Chief Executive, 6/2/20)

Texas is No. 3 on Forbes’ annual Best States for Business ranking. (Forbes, 12/19/19)

Texas has the nation’s best corporate tax environment. (Area Development, Q3/19)

Texas is No. 2 on America’s Top States for Business ranking. (CNBC, 7/10/19)

Texas has the most entrepreneur-friendly policy environment and the best state tax system. (Small Business & Entrepreneurship Council, 5/6/19)