Texas Tax Rate

 

While federal tax rates apply to every taxpayer, state income taxes vary by state. Some states have a flat tax rate, marginal tax rate, or don’t have any state taxes at all. Texas is one of seven states with no income tax.

What is the Tax Rate in Texas?

The Texas tax rate is 0% for income taxes.

The state’s tax revenue primarily is derived from sales taxes and taxes on businesses and industry.

The state does have a property tax, but it’s collected by cities, counties, and school districts. Learn more about Texas property taxes.

Some additional taxes in Texas include:

  • The gas tax, which is 20 cents per gallon on diesel and unleaded fuels.
  • The tax on cigarettes at $1.41 per pack.
  • Hotel tax is 6% of the cost of the room.
  • Franchise tax is .375% for wholesalers and retail businesses and .75% for other non-exempt businesses.

More Help With Taxes in Texas

Understanding taxes in Texas can be tricky. Luckily, we’re here to save the day! Tax Pro Go, virtual tax prep offered by H&R Block. We’ll match you with a tax pro with Texas tax expertise.

Taking in these Texas tax considerations, we can make sure you are supported when it comes to taxes. Whether it’s understanding your tax obligations, resolving other state tax problems, figuring out state or local tax deductions (SALT deductions), or filing your state taxes, we’ve got you covered!

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