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)

Taxation

Total state and local taxes averaged $4,020 per person in 2016, 18.7% less than the national average. Similarly, state and local taxes in Texas are low relative to income, amounting to $87 per $1,000 of personal income, compared to the national average of $99 per $1,000.

State & Local Taxes Per Capita 2016

Tax Burden 2016

Texas
United States
State & Local taxes per capita, total$4,020$4,946
Property1,7621,556
Sales & gross receipts2,0141,728
Individual income1,164
Corporate income168
Other244330
State & local taxes per $1,000 of personal income8799

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 has the nation’s No. 2 Business Climate.
(Business Facilities, 7/23/18)

Texas is America’s Top State for Business.
(CNBC, 7/10/18)

Texas is No. 2 on Forbes’ Best States for Business ranking.
(Forbes, 11/28/17)

Texas offers the Most Favorable Business Climate for the 7th consecutive year according to survey of C-suite executives.
(Development Counsellors International, 9/18/17)

Texas has the nation’s Best Corporate Tax Environment.
(Area Development, 9/18/17)

Texas is 2nd Best Tax System for Entrepreneurship & Small Business.
(Small Business & Entrepreneurship Council, 6/21/17)

Texas is the most business-friendly state according to survey of site selectors.
(Site Selection, 11/2/16)

Texas is the Best State for Business for the 12th consecutive year.
(Chief Executive, 5/9/16)

Texas offers one of the 3 Most Competitive Corporate Tax Environments.
(Bloomberg BNA, 6/15)