Texas does not levy an individual income tax on TX residents. This means that you're not required to file a Texas state tax return.
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Texas Tax Facts
TX Income Tax:
Texas does not collect state income tax from individuals.
TX Sales Tax:
Texas has a state sales tax rate of 6.25%. Counties, cities, transit, and special purpose districts have the option to impose additional, local sales and use taxes. These tax rates can add up to 2% to the state sales tax, making the combined total tax rate as high as 8.25% on purchased items.
More information on Texas Sales Tax
TX Sales Tax Holiday:
Texas has two annual sales tax holidays. During these holidays, certain items are exempt from Texas sales tax. However, the TX consumer will only receive the tax exemption if a specific total spending limit is met.
Refer to the chart below for all Texas sales tax holidays for 2018.
|Sales Tax Holiday Dates
||Sales Tax Holiday Items Included
- Batteries fuel containers, and flashlights less than $75
- Hurricane shutters and emergency ladders less than $300
- Portable generators less than $3,000
- Clothing (excluding accessories, athletic or protective clothing, and rentals of clothing or footwear), backpacks, and school supplies- $100 or less
TX Personal Property Tax:
Though Texas doesn't have a state personal property tax rate, cities, counties, and school districts collect property taxes at the local level. They assess and collect the taxes on all real and income-producing tangible personal property that is not exempt by state or federal law. Total tax rates vary based on location and may change every Tax Year.
Personal property that doesn't produce income is mostly exempt from the tax. Items that usually have this exemption include:
- Travel trailers
There is a residential homestead exemption available to those who owned personal property on January 1. The exemption is increased for taxpayers who are either 65 years and older or disabled. To apply for the tax exemption, homeowners need to file Form 50-114, Application for Residence Homestead Exemption, with their appropriate taxing jurisdictions between January 1 and April 30. They cannot file the form later than April 30.
Odd Tax Fact:
Texas collects more than 60 separate taxes, fees, and assessments (includes local sales taxes) on various items. Below are a few of the items taxed in the state:
- Fireworks: 2% is added to the existing sales tax rate. Since this is a state tax, it doesn't affect the 2% local sales and use tax. Taxes collected from firework sales fund a program assisting rural fire departments
- Lead-acid batteries (new or used): a fee is imposed on their sale, use, storage, or consumption, based on the number of volts ($2 per battery of less than 12 volts, $3 per battery with a capacity of 12 volts or more)
- Oyster sales: $1 fee (per 300lb-barrel) of oysters imposed on certified shellfish dealers who harvest, purchases, stores, packs, labels, unloads at dockside, or holds oysters from TX waters
- Sexually-oriented businesses: a $5 fee is collected from TX patrons who enter "businesses that provide live nude entertainment or live nude performances and authorize on-premises consumption of alcoholic beverages, regardless of whether the business is required to hold a license or permit under the Alcoholic Beverages Code"
State Tax Agency:
For more information, you can visit the website of the Texas Comptroller.
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