Texas
By the Numbers

Texas Below is a snapshot of key features of Texas' tax system. (Scroll Down)
Personal Income Tax Features (2015)
  • Range of Tax Rates: N/A
  • Standard Deduction: N/A
  • Personal Exemption: N/A
  • Dependent Exemption: N/A
  • Earned Income Tax Credit (EITC): None
  • No broad based personal income tax
Corporate Income Tax Features (2015)
  • Range of Tax Rates: N/A
  • Income Level at Which Top Rate Applies: N/A
  • Combined Reporting: Yes
  • Apportionment Factor (Payroll): 0%
  • Apportionment Factor (Property): 0%
  • Apportionment Factor (Sales): 100%
  • Apportionment Note: Texas imposes a Franchise Tax rather than a corporate income tax
Sales Tax Features (2015)
  • State Sales Tax Rate: 6.25%
  • Average Local Sales Tax Rate: 1.60%
  • Average Combined State & Local Sales Tax Rate: 7.85%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: Exempt
  • Number of Services Taxed: 83 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: No
  • Vendor Compensation available without ceiling
  • Sales tax applies to digital goods and services
  • Sales tax applies to digital goods and services
Property Tax Features (2015)
  • School, county, and municipal property tax rates are capped.
  • Provides school homestead exemption and local-option exemptions.
Other Tax & Revenue Features (2015)
  • Gasoline Tax Rate (per gallon): $0.20
  • Diesel Tax Rate (per gallon): $0.20
  • Cigarette Tax Rate (per pack): $1.41
  • Estate or Inheritance Tax: No
  • Net Lottery Sales Per Capita: $141 (2010)
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Multiple taxes

Last Updated January 13, 2015

Sources & Glossary