Tax Exemption Forms
Sales Tax Forms
Form 01-339 Texas Sales and Use Tax Exemption Certification
Form 01-156 Texas Use Tax Return
Form 01-117 Texas Sales and Use Tax Return (Short)
Property Tax Forms
Form 50-114 Application for Residence Homestead Exemption
Form 50-144 Business Personal Property Rendition of Taxable Property
The Texas tax burden, at 7.9% of income is well below the national average of 9.8%. there is no state income tax, which leads to higher sales and property taxes. There are also property taxes that must be given consideration. Tax returns are due on April 15.
Texas state sales/use tax – 6.25%, prescription and non-prescription drugs and non-prepared food exempt, local sales tax can add 2%.
Texas personal income tax
There is no state income tax
Texas excise taxes
Taxes will be assessed on alcohol, tobacco, gasoline and other miscellaneous items, at the discretion of the state.
- $1.41 per package of 20 cigarettes
- $2.40/gallon on spirits
- $.204 per gallon on table wine
- $.20 per gallon of beer
- Fireworks are taxed at 2% + sales tax, which funds rural fire departments
- $.24/gallon on gasoline
Texas inheritance/estate tax
Only federal laws are in effect. No state estate tax has been collected on deaths after Jan 1, 2005. There is no Texas inheritance tax.
Texas payroll taxes
State Disability Insurance – none
State Unemployment Insurance – 0.66% to 8.25%, wage base is $9,000. New employer contribution is 2.7%. Construction employers use 5.4%.
State minimum wage follows federal standards.
Texas state property tax
Texas does not impose a property tax, but cities, counties and school districts will. Vehicles that do not produce income are exempt from taxation. Intangible property is not taxed. There is a homestead exemption available for homeowners that live in their property as a primary residence. Property taxes are comparatively higher to other states due to the absence of personal income taxes.
Texas state corporate tax
Although Texas does not levy a corporate income tax, there is a tax on gross receipts called the Texas margins tax. Texas is only one of five states that has a gross receipts tax in lieu of a corporate tax rate.
There is a $10,000 property tax exemption to the property’s assessed value for school district taxations. This can be in addition to a $15,000 homestead exemption. $3,000 will be exempt from all other local taxes. School distract taxes are frozen for seniors and the disabled.The tax ceiling on properties that undergoes renovations is dropped to compensate for the cost of renovations and increased value of the property.
Primary Areas of Concern
Texas is the 2nd most populous American state and curiously, has a lower tax burden than other populated states like CaliforniaNew York
Texas sales taxes are imposed on all sales, leases, and rentals on all goods and most taxable services. Food and clothing are subject to the Texas state sales tax. In addition to the Texas state sales tax, cities and counties reserve the right to add a fraction to revenue to their own coffers. The Texas sales tax rate currently stands at 8.25%. 8.25% percent is the combined total rate of city, county, and state government sales taxes. Texas also imposes various selective sales taxes. The Texas state sales tax on specific commodities mostly pertain to vices like alcohol, gambling
Texas Property Taxes
In Texas, the property tax burden is relatively high. Property taxes are high due to the high population of the state. Texas real estate demand is high; therefore, the government see this as an opportunity to generate revenue. The average Texas property owner pays approximately $1,400 a year in property taxes. This is staggering given the vast wealth of land comprises the state of Texas.
Texas is, geographically, the second largest state. Property taxes, in Texas are not imposed by the state, they are imposed by the county government. Texas is one of 13 states that do not impose property taxes at the state level. Texas property taxes are based on the taxable value of a commercial, industrial, or residential property. Property tax appraisers are county government workers. Texas property owners have a right to appeal real estate appraisals.
The Texas state government even approved the passing of the Property taxpayer's Bill of Rights. The Texas Property Taxpayer's Bill of Rights outlines the right of property owners to appeal the county government's appraisal of land holdings. Equal and uniform property taxation is another right of property owners.