Texas

Sales Tax

  • Statewide: 6.25%
  • Municipalities can levy sales tax of no more than 2.0%.
  • Current average sales tax (with local taxes included): 7.931%
  • Common Exceptions at State Level:
    • Unprepared Foods: Exempt
    • Prescription and Over-the-Counter Medicine: Exempt
    • Certain medical devices such as hearing aids and canes: Exempt
  • Gasoline Tax: 38.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 44.40 cents/gallon (Includes all state, local, and federal taxes)
  • Sales Tax Comments: Many services are taxed

 

Personal Income Tax

  • Texas has no personal income tax.

 

Property Tax

  • Local municipalities average 1.80% of the property's assessed value.
  • Calculation of assessed value: Fair market value, but allowed annual increase is limited.
  • Relief programs for:
    • Owner-occupied: School districts must offer a $25,000 exemption for qualified properties.
    • 65 and over or Disabled: School districts must offer an additional $10,000 exemption for qualified properties, with an additional $3,000 possible. School district taxes cannot increase as long as owner resides in home. Deferral programs available.
    • Disabled Veterans: Full or partial exemption based on percentage of service-connected disability. Also applies to surviving spouse and children.
    • 100% Disabled Veteran or Surviving Spouse (not remarried): Total exemption (also applies to surviving spouse of servicemember killed in action or first responder).
    • Personal Property Tax: Yes. Rates and exemptions vary.

Property Tax Comments: The above exemptions are mandatory, but other optional exemptions at the local level may be available.

 

Inheritance & Estate Taxes: None

 

Department of Revenue website: www.comptroller.texas.gov/taxes/

More Financial Guidance From MOAA 

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