Texas
Taxes and business formation • USA 2025–2026
TL;DR
Texas at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Texas.
| Parameter | Value |
|---|---|
| Personal income tax | None |
| LLC formation fee | $300.00 |
| LLC annual report fee | $0.00 |
| LLC annual report deadline | May 15 |
| LLC dissolution fee | $40.00 |
| Corporation formation fee | $300.00 |
| Corporation annual report fee | $0.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
Corporation in Texas
Tax system of Texas
Income Tax
Texas has no personal income tax, which is one of the state's key advantages.
Sales Tax
The base sales tax rate in Texas is 6.25%, but local taxes can bring this figure up to 8.25% in some areas. Determining the taxable base and the applicable tax rate can be complex and requires a professional approach. We provide services for obtaining a Sales Tax Certificate, and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
The average property tax rate in Texas is 1.47%–2.2% of a home's value, which is quite high.
Business Taxes
Texas has no corporate tax, but it does have a Franchise Tax. The tax base is revenue (Taxable Margin) above $2,470,000. Tax rates depend on the type of business. Companies file an Annual Franchise Tax Report even when revenue is zero. We provide services for preparing and filing the Annual Report.
Excise Taxes
Texas levies excise taxes on items such as alcohol, tobacco, and fuel, which is a source of revenue for the state.
Frequently asked questions
Does Texas have a personal income tax?+
No. Texas does not levy a personal income tax on wages or self-employment income. You still file a federal Form 1040 with the IRS every year, and you may owe tax to another state if you earned income there.
How much does it cost to register an LLC in Texas?+
The state filing fee in Texas is $300.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Texas LLC?+
The Texas annual report fee is $0.00, due May 15. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Texas to open an LLC there?+
No. You do not need to live in Texas — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Texas state return remotely?+
Yes. FinTaxes prepares and e-files federal and Texas state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
Starting a business in Texas?
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