Tax Structure

PROPERTY TAX

*HCAD incorporates data from 4 Cities, 8 ISDs, 9 ESDs, and the county; ESD and ISD rates may vary across the county; ESD rates within Marshall ISD may vary slightly; The county example used is for the area outside the city limits in the Marshall Business Park

For more information on local taxing units and property tax, please visit, Texas Comptroller of Public Accounts.

Source:  Tax Code; HCAD

Sales Tax

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

Source:  Sales and Use Tax; Local Government Code

Guide to State Taxes

Franchise Tax

• 0.375% - 0.75%
• The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.
• The following are applicable for 2022 & 2023

Source:  Franchise Tax

Sales and Use Tax

• 6.25% - 8.25%
• Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

Source:  Sales and Use Tax

Unemployment Insurance

• 0.36% - 6.36%
• The following rates are applicable for 2022

• You pay unemployment tax on the first $9,000 that each employee earns during the calendar year.  Your taxable wages are the sum of the wages you pay up to $9,000 per employee per year
• The Effective Tax Rate (ETR) is calculated as follows:  General Tax Rate (GTR) + Replenishment Tax Rate (RTR) + Obligation Assessment Rate (OA) + Deficit Tax Rate (DTR) + Employment and Training Investment (ETIA)
• Entry Level Rate:  Employers newly liable for state unemployment tax who do not acquire compensation experience from a previously liable employer begin with a predetermined tax rate set by the Texas Unemployment Compensation Act (TUCA). The North American Industry Classification System (NAICS) assigns an average tax rate for each industry. Texas law sets an employer’s tax rate at their NAICS industry average or 2.7 percent, whichever is higher.

Source:  Entry Level UI Tax Rate; UI Tax Rates

Workers' Compensation Insurance

• In Texas, private employers can choose whether or not to carry workers' compensation insurance coverage.
• If voluntarily elected, a company may choose to base its rates on (1) the Texas workers' compensation classification relativities established by the Commissioner of Insurance; (2) its own independent company-specific relativities filed by the company; or (3) loss costs filed by the National Council on Compensation Insurance (NCCI), which is an advisory organization to the Texas Department of Insurance (TDI).

Source:  Workers' Compensation; Employer Factsheet; Rate Guide

Property Tax

• Texas has no state property tax. The Comptroller's office does not collect property tax or set tax rates. That's up to local taxing units, which use tax revenue to provide local services including schools, streets and roads, police and fire protection, and many others.
• For more information on local taxing units and property tax, please visit, Texas Comptroller of Public Accounts.
• To search property taxes by parcel, please visit, Harrison Central Appraisal District.

Source:  Property Tax

Personal Income Tax

• Texas has no personal income tax.
• The Texas Constitution of 1876 does not provide for personal income tax unless the [income tax] law is approved by a majority of the registered voters.

Source:  Texas Constitution, Art. 8, Sec. 24

Inheritance Tax

• The Inheritance tax was repealed effective Sept. 1, 2015.

Source:  Inheritance Tax

Other Potential Types of Taxes & Fees

• Other state taxes may be applicable to specific business operations.  For a detail view, please see Texas Comptroller's Office, All Taxes & Fees.

Tax Resources

Harrison Central Appraisal District

Texas State Comptroller

Tax Foundation

• Tax Foundation Facts & Figures - 2021
• State Individual Income Tax Rates and Brackets - 2021
• State Business Tax Climate Index - 2022

Wallet Hub

Overall Tax Burden 2021   -   (1 = highest tax burden - 50 = lowest tax burden)