Taxation
Texas has no personal or corporate income tax.
Texas is a smart place to start and grow a business. With the 43rd lowest tax burden in the country, companies can keep more of their profits. Texas has no corporate income tax. The State’s low cost business environment has helped it to become the nation’s leader for job and population growth.
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Tax |
Description |
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Personal Income Tax |
None |
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Corporate Income Tax |
No corporate income tax.
For tax year 08/09 Texas Margin tax - 1% Calculation for 2008: Total Revenue less Employee Compensation OR Total Revenue less Cost of Goods Sold
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Property Tax Per $100 Valuation
Fiscal Year 11/12 |
City of Plano $0.4886
Collin County $0.2400
Plano ISD $1.3734
Collin Co. Comm. College $0.0863
Total Ad Valorem Rate $2.1883
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Unemployment Insurance |
2.7% general entry rate, charged on first $9,000 in earnings, reassessed after six quarters and charged at own experience rate
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Sales and Use Tax |
State of Texas 6.25%
City of Plano 1.00%
Dallas Area Rapid Transit 1.00%
Total Sales Tax Rate 8.25%
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Workers Compensation |
Not required by state.
Options include: self insurance, state-operated Texas Workers’ Compensation Insurance Fund or licensed private insurance company.
Maximum Weekly Benefit of $750.
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Exemptions
The following businesses are exempt from business tax for year 2008:
- Sole proprietorships;
- General partnerships (excluding limited liability partnerships) owned entirely by natural persons;
- Certain unincorporated passive entities, grantor trusts, estates of natural persons, escrows, real estate mortgage investment conduits (REMICs) and certain real estate investment trusts (REITs); where at least 90% of revenue is from passive investments (rent is not considered passive income);
- Non-profit and other organizations currently exempt from the franchise tax;
- Businesses with $300,000 or less in total revenue; and
- Businesses that owe less than $1,000 in tax.