Tax Climate

Property Taxes

Tangible property is subject to local taxation in Texas, and is appraised and assessed at 100% fair market value. Property subject to taxes are divided into two categories: real and personal property. Personal property is defined as “all movable items not permanently affixed to or a part of the real estate”. Real property is any property that is not personal property.

Real property is appraised by the Collin County Appraisal District.

2023-24 Property tax rates (per $100 valuation):

While not reflected here, it should be noted that strong growth has allowed these entities to lower the property tax rate by over 13% the past 10 years.

Sales & Use Tax

A sales and use tax of 8.25 percent on all retail sales, leases, and rentals of most goods, as well as taxable services. (However, food items are exempt from sales tax.)

Exemptions are available for qualifying manufacturing operations and data centers.

Sales and use tax rates

Franchise Tax

The Franchise tax is imposed by the state on entities doing business in Texas and is based on the margin of the company. The State Comptroller has an excellent guide that explains this tax here.

Franchise tax rates

• 0.75% for most entities
• 0.375% for qualifying wholesalers and retailers
• 0.331% for certain entities with $20 million or less in total revenue