Taxes & Business Costs

When looking at the taxes and business costs listed below, its easy to see why Texas consistently scores in CNBC’s top-3 states for doing business in the USA. Galveston County received a AAA bond rating in 2017.

State Taxes

  • No corporate income tax
  • No individual income tax
  • Margins tax:
    • .75% on gross receipts less cost of goods sold, or .3755% for retailers and wholesalers
    • Sole proprietorships, general partnerships, businesses with revenue under $1.1 million are exempt

Combined State and Local Taxes

  • Sales Tax Rates
    • 6.25% Unincorporated Galveston County
    • 7.25% Jamaica Beach
    • 7.25% Tiki Island
    • 7.75% Dickinson
    • 7.75% Friendswood
    • 8% Bayou Vista
    • 8% League City
    • 8.25% Galveston City
    • 8.25% Clear Lake Shores
    • 8.25% Hitchcock
    • 8.25% Kemah
    • 8.25% La Marque
    • 8.25% Santa Fe
    • 8.25% Texas City

Property Tax Rates

Workers Comp

  • Texas is the only state that doesn’t require private companies to have workers’ compensation insurance.

Unemployment Insurance

  • Wage Base is $9,000 for 2017.
  • New employers use greater of the average rate for all employers in the NAICS code to which they belong or 2.7%.

Source of Business and Labor Numbers: The Next Move Group