Member Login Join the Chamber What we do Economic development Membership Events Blog About .st0 { fill: #111 } State & Local Taxes & Incentives In Texas and the Austin region, we've formalized a friendly attitude into a business climate that is truly user friendly. The tax structure is fair, competitive and designed to make companies feel welcome. Texas is one of only a handful of states with no individual income tax (a very attractive environment for transferring employees). Total state and local taxes averaged $4,481 per person in 2018, 17% less than the national average. Similarly, state and local taxes in Texas are low relative to income, amounting to $88 per $1,000 of personal income, compared to the national average of $99 per $1,000. Contact our team Taxes & Incentives Overview In Texas and the Austin region, we've formalized a friendly attitude into a business climate that is truly user friendly. The tax structure is fair, competitive and designed to make companies feel welcome. Learn More Corporate Franchise Tax Texas has no corporate income tax. However, Texas does have a franchise tax, which took a new form in 2008 . . . Learn More Property Tax Local governments and special taxing districts levy taxes on real and tangible personal property. Texas has no state property tax. Learn More Sales & Use Tax The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. Cities, counties, and transit authorities may add to the sales tax rate up to a maximum combined state and local rate of 8.25%. Learn More Unemployment Insurance & Workers’ Compensation Employer costs for unemployment insurance and workers' compensation are relatively low in Texas. Learn More Texas Enterprise Zone Program The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. Learn More Tax Exemptions & Credits The following sections detail the available tax exemptions and credits available to qualified companies who conduct business locally. Learn More Training Programs The following sections detail the training programs available locally. Learn More Financing Programs The following sections detail state and local economic development grant and loan programs. Learn More Foreign Trade Zone 183 of Central Texas A Foreign Trade Zone (FTZ) is an area within the United States which is designated by the federal government as outside of U.S. Customs territory. Learn More Other Assistance The following section details other assistance programs available locally. Learn More Local Incentives Summary The following section details a summary of local incentives. Learn More Copyright © 2019 Austin Chamber AboutSitemapContactPrivacyCareersNewsletterBrand Kit