Taxes & Incentives - Catalyzing Growth & Development
Be a part of Dallas’s success story. Start with the City of Dallas Incentives Inquiry Tool in order to identify the best-fit programs for your project. The City’s Economic Development staff are ready and waiting to assist you in this process.
Taxes & Incentives - Tax Rate
Texas is renowned for its business-friendly tax structure. Texas boasts a low corporate franchise tax rate and beneficial policies to further reduce the corporate tax burden. Due to the absence of a state income tax for corporations and individuals, Texas enhances profitability and provides businesses with more capital to invest in growth and R&D. While the tax burden is relatively low, corporations relocating to Texas should be aware of the following taxes:
0%
Corporate Income Tax
0%
Personal Income Tax
0%
Local Wage Tax
5th
Lowest per capita tax in US
Franchise Tax
Corporations, LLCs, and other entities pay a franchise tax based on their earnings, with rates varying but not exceeding 1% for most businesses and 0.5% for qualifying wholesalers and retailers. Specifically, the tax rate is 0.331% for companies with revenue between $2.47M and $20M. For companies with revenues >$20M the tax rate is 0.375% or 0.75%, depending on the type of business.
Unemployment Insurance Tax
Employers pay into the Unemployment Compensation Fund, with tax rates for new employers set at 2.7% of the first $9,000 of each employee’s wages and varying rates for established businesses.
Sales and Use Tax
A state sales tax of 6.25% applies, with local jurisdictions able to add up to 2%, making the maximum rate 8.25%. This tax affects the sale, rental, and use of tangible goods and some services.
Property Tax
While Texas does not have a state property tax, local governments assess and collect property taxes on real and personal business property, which can vary by location.
Taxes & Incentives - Property Tax in Dallas
The total property tax rate for the City of Dallas has declined annually since 2018. The current tax rate is $0.7357 per $100 in valuation, reflecting a 5.7% decrease over the past 5 years. Other jurisdictions within the City of Dallas set their own tax rates. The below rates are provided as information only; please confirm current rates with the appropriate jurisdiction. Rates are applicable to real property and business personal property. For projects located within the City of Dallas and Dallas County, the total combined local tax rate is $2.294781 per $100 in valuation.
- Dallas County – 0.215718
- Dallas Independent School District – 1.013835
- Dallas College – 0.110028
- Parkland Hospital – 0.2195
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
|
$0.7357 |
$0.7733 |
$0.7763 |
0.7766 |
0.7767 |
0.7804 |
Taxes & Incentives - Other
These robust infrastructure elements create an environment where businesses can maximize their productivity and growth potential, making Dallas/DFW a strategic choice for relocation.
Telecommunications
State-of-the-art telecommunications infrastructure, including extensive fiber optic and broadband coverage, ensures businesses are well-connected.
Energy Grid
A reliable and independent energy grid with competitive energy costs, including renewable energy options, provides businesses with the power they need to operate efficiently.
Water Supply
Robust water infrastructure supports both current needs and future growth, a critical factor for many industries.
