The Nation’s Top Corporate Tax Environment
Top ranked by Area Development, Texas’ tax climate is a constant benefit for companies.
With no corporate or personal income tax, Texas has one of the lowest tax burdens in the nation. The state offers a number of other advantages for businesses, including sales tax exemption for manufacturing machinery and equipment and R&D-related materials, software, and equipment, as well as franchise tax exemption to manufacturers, sellers, or installers of solar energy devices. Property tax abatements, permitting fee waivers, local cash grants and local funding are also available to assist companies looking to relocate or expand in the state.
Governor Abbott and the Texas Legislature continue efforts to make the state even more competitive from a cost perspective. For example, in 2015, during his first session in office, Governor Abbott successfully passed an across-the-board 25% reduction in the franchise tax. Texas lawmakers also passed a meaningful property tax cut to increase the homestead exemption by $10,000.
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Industry-leading companies of all sizes are growing in Texas. Read how these companies decided to Go Big in Texas.