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Texas

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Texas State and Local Tax Profile

Income Taxes

  • No state personal income tax
  • Retirement Income: Not taxed.

Sales Taxes

  • State Sales Tax: 6.25% (food, prescription and non-prescription drugs exempt); local option taxes can raise the rate to 8.25%.
  • Gasoline Tax: 20 cents/gallon
  • Diesel Fuel Tax: 20 cents/gallon
  • Cigarette Tax: $1.41 cents/pack of 20
  • Property Taxes

    • Property tax is imposed by local taxing units. For homeowners 65 and older, $10,000 (in addition to the regular $15,000 homestead exemption) of the property's assessed value is exempt from school taxes and $3,000 is exempt from other local taxes. Once an over-65 homeowner qualifies for an over-65 homestead exemption for school taxes, that owner gets a tax ceiling for that home on school taxes. If the homeowner improves the home (other than normal repairs or maintenance), the tax ceiling is adjusted for the new additions. School district taxes are frozen for seniors (65 and older) and disabled persons at the level imposed on the residence the first year that the taxpayer qualified for the residence exemption. Counties, cities, towns, and junior college districts are permitted to establish a tax freeze on homesteads of those age 65 and older or disabled. For more information on exemptions, click here.

    Estate Tax

    • There is no inheritance and the estate tax is limited and related to federal estate tax collection.
    • For further information, visit the Texas Comptroller of Public Accounts site or call the appropriate office using telephone numbers found on the site..





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Last Updated ( Monday, 21 January 2008 )
 
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