Texas Tax Information

Limitation on Appraised Value of Residence Homestead

This information was found on www.window.state.tx.us which was updated December 31, 2001.

Personal income tax
Texas residents enjoy no personal state income tax.
Sales tax
Texas has a 6.25 percent state sales tax.
Local sales and use taxes levied by cities, counties, transit and special purpose districts can add up to 2 percent more to the sales tax.
Effective Oct. 1, 2001, Texas fireworks retailers began collecting a 2 percent fireworks tax in addition to existing sales taxes. The fireworks tax is a state tax and does not affect the 2 percent local sales and use tax cap. These tax collections will fund a program to assist rural fire departments.
Personal and real property taxes
Texas does not have a state property tax.
Local taxing units (counties, cities and school districts) assess and collect property taxes on all real and income-producing tangible personal property not exempt by state or federal law.
Total tax rates vary from location to location and may change from year to year.
The average aggregate tax rate often cited in publications about property taxes in Texas is $2.50 per $100 of property value.
Personal property (including automobiles, airplanes, boats and travel trailers) that does not produce income is mostly exempt from taxation. (Note: check changes made due to election September 2003)
A residential homestead exemption is available for all, with a greater exemption for taxpayers 65 and older or disabled. Applicants need to file Form 50-114, Application for Residential Homestead Exemption. (Instructions for downloading forms.) Residents need to file this application between January 1 and no later than April 30.
If you have additional questions, you may contact the Property Tax Division at (800) 252-9121, extension 59845.
Intangible personal property taxes
Texas does not tax intangible property such as stocks, bank accounts or certificates of deposit.
Inheritance and estate taxes
There is no inheritance and limited Texas estate tax related to federal estate tax collection.

For more information, contact the Texas Comptroller of Public Accounts at (800) 252-5555 or at the Web site. To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.

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updated: 02/16/2008