Texas Taxes

This brief summary of the tax regime which prevails in the state of Texas describes how the residents of that state pay their taxes.

Texas Tax Help

877-662-8375

en Español:
1-800-252-7875

Texas Income Tax

  • There are seven states in the US which do not collect taxes on individual income. Texas is one such state.
  • Even though there is a restriction on collection of personal income tax, there is some tax collected on certain cateogories of business.
  • Information on taxation in the state of Texas can be obtained from the official website of the Comptroller of Public Accounts, Texas.

Texas Sales and Use Tax

  • All leases and rentals of most goods and services and retails sales are subject to state use tax and sales tax.
  • In Texas, special purpose districts, cities, transit authorities and transit authorities generally are entitled to collect additional local sales tax as a part of a combined aggregate of both local and state tax up to 8.25% of the revenue.
  • This financial year (2011-12) there is a $50.00 late fee for returns which have been filed late, which is on or after 1st October 2011.
  • The above penalty is applicable in addition to any other penalties which may have incurred during the relevant reporting period.

Texas Property Tax

  • Property tax in Texas is rated as the third-highest in the United States, the other two being Connecticut and New Jersey.
  • The average property tax in Texas is $18.00 for every $1000.00.
  • In Texas, property tax extends to property in all forms – not just land and real estate.
  • The filing deadlines for the different categories of property fall on different days and months during the financial year.
  • Due to this reason, a property tax calendar has been created which gives the different dates that different categories of property are due.

Texas Estate and Inheritance Tax

  • Those estates which exceed the limit of exempt income on an estate have to file inheritance tax returns.
  • For estates where the decedent has died on or after 1 January 2005, no inheritance tax return needs to be filed.
  • The due date for filing an inheritance tax return is nine months following the decedent’s death.
  • To compute the inheritance due on an estate, $60,000 is deducted from the value of the estate and the rate is then obtained from tax tables which are available with the tax return form and instructions.

Where to Mail FEDERAL IRS Tax Forms within Texas:

IRS Form If you ARE NOT enclosing a payment, use this address: If you ARE enclosing payment, use this address:
1040: Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0002
Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
1040A: Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0015
Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
1040EZ: Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0014
Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214