Municipalities can levy sales tax of no more than 2.0%.
Current average sales tax (with local taxes included): 8.20%
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.
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.