Filing Texas State Taxes

There are only seven states that do not tax individuals’ wage incomes, Texas is one of them. Texas does, however, collect a gross receipts tax from some businesses. Some of the other taxes that are applicable in Texas are :

Sales Tax

• 911 Emergency Service Fee: You need to pay $0.50 per month for each local exchange access line or equivalent local exchange access line. You also need to pay $0.50 per month for each wireless telecommunications connection.
• 911 Equalization Charge: You need to pay 1% in customer's intrastate long-distance charges each month.
• Coastal Protection Fee: You need to pay $0.02 per barrel of crude oil or condensate.
• Automobile Theft Prevention Authority Assessment: You need to pay $1 per motor vehicle year.
• Crude Oil Protection Tax: You need to pay 4.6% of market value of oil.
• Insurance Premium Tax: You need to pay 4.85% of taxable premiums.
• Loan Administration fee: You need to pay $0.50 of each administrative fee charged for a secondary mortgage loan.

Sales Tax

The sales tax in the state of Texas is 6.25%. There may be an increase of more than 2% in sales tax because counties, special purpose districts and cities also charges local sales and use taxes.

Personal and Real Estate Property Taxes

You do not need to pay any sort of property tax in the state of Texas. On all real tangible personal property that is not exempted by federal or state law, local taxing units evaluate and collect property taxes. Personal property that does not generate any revenue is exempted from taxation. Tax rates are adjusted every year in Texas and often vary from one locality to another. If you owned property on January 1, you will get a residential homestead exemption. An exemption is also available to senior citizens and the disabled. To avail such benefits, you need to file Form 50-114 (the Application for Residence Homestead Exemption).

Inheritance Tax

Unlike in other states, you do not need to pay any inheritance tax in the state of Texas.

Fireworks Tax

Apart from existing sales taxes, Texas fireworks retailers collect an additional 2% fireworks tax. It is a state tax and does not have an impact on the 2% local sales tax. The main objective of this tax program is to help rural fire departments.