| $ Personal income
tax |
| • |
Texas residents enjoy no personal
state income tax. |
| • |
The state does, however, impose
a variety of other taxes. A list and rates can be found here. |
| $ Sales tax |
| • |
Texas has a 6.25 percent state
sales tax. |
| • |
Local sales and use taxes levied
by cities,
counties,
transit
and special
purpose districts can add up to 2 percent more to the sales
tax. |
| • |
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.
|
| $ 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, with a greater exemption for taxpayers
65 and older or disabled. Applicants need to file Form
50-114, Application for Residential Homestead Exemption.
Residents need to file this application between Jan.1 and no
later than April 30. |
| • |
Effective Jan. 1, 2004, a county,
city or junior college district now has the abiltiy to limit
taxes for homeowners who are either disabled or age 65 or older.
The governing body may adopt the limitation, commonly called
a tax ceiling, or citizens in the taxing district may petiton
to have an election on the limit. |
| $ Intangible personal
property taxes |
| • |
Texas does not tax intangible property
such as stocks, bank accounts or certificates of deposit. |
| $ Inheritance and
estate taxes |
| • |
Texas does not impose an inheritance
tax. |
| • |
Because of the phase-out of the
federal estate tax credit, Texas's estate tax is not imposed
on estates of persons who died in 2005. |
| |
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. |
| |
--Updated: Feb. 8, 2006 |
| |
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