taxes
Texas
Texas is one of only seven states that does not tax individual wage income. The state's constitution restricts passage of a personal income tax. The Lone Star State, however does collect a gross receipts tax from some businesses. More on Texas taxes can be found in the tabbed pages below. | | Income | | Sales | | Property | | Estate | | Other |
| | Personal income tax |  | Texas residents pay no personal state income tax. | | | The state does, however, impose a variety of other taxes. A list and rates can be found here. |
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| Personal and real property taxes | | Texas does not have a state property tax. | | Local taxing units (counties, cities and school districts) assess and collect property taxes on all real and income-producing tangible personal property not exempt by state or federal law. Personal property (including automobiles, airplanes, boats and travel trailers) that does not produce income is mostly exempt from taxation. | | Total tax rates vary from location to location and may change from year to year. | | | A residential homestead exemption is available for all who owned property on Jan. 1. A greater exemption is available for taxpayers 65 and older or disabled. | | | Homeowners need to file Form 50-114, Application for Residence Homestead Exemption, with their appropriate taxing jurisdictions between Jan. 1 and no later than April 30. |
| Inheritance and estate taxes | | Texas does not impose an inheritance tax. | | | Because of the phaseout of the federal estate tax credit, Texas' estate tax is not imposed on estates of persons who died in 2005 or later. |
| Other Texas tax facts | | Texas fireworks retailers collect a 2 percent fireworks tax in addition to existing sales taxes. The fireworks tax is a state tax and does not affect the 2 percent local sales and use tax cap. These tax collections will fund a program to assist rural fire departments. | | The Lone Star State's franchise tax applies to all active businesses receiving state law liability protection. This online calculator can help you figure your potential business tax liability. | | A variety of publications and financial reports for various state-funded programs is available at this Web page. |
| | For more information, contact the Texas Comptroller of Public Accounts at (800) 252-5555 or at the Web site. | | To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions. |
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-- Updated: Feb. 4, 2008