One of the significant advantages of opening a business in Texas is the absence of a state income tax. However, there are other taxes you need to be aware of:
Types of Taxes
- Sales Tax: Texas imposes a state sales tax of 6.25%, with additional local taxes that can bring the total rate up to 8.25%.
- Franchise Tax: Also known as the Texas Margin Tax, this applies to businesses with more than $1.2 million in revenue. The rate varies based on industry.
- Property Tax: If your business owns real estate, you'll be subject to property taxes assessed by local governments.
Consulting with a tax professional is highly recommended to ensure compliance and take advantage of any available deductions or credits.
