Texas does not impose a personal income tax.
Texas does not have a Corporate tax. However there is a Franchise Tax.
|Franchise Tax||State of Texas|
|The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.|
0.75% for most entities
0.375% for qualifying wholesalers and retailers
0.331% for entities with <= $20 million in Total Revenue electing the E-Z Computation
2016-2017 Rates: window.state.tx.us/taxinfo/franchise/rates
Unless a taxable entity qualifies and elects to file using the E-Z Computation, the revised tax base is the taxable entity's margin. Margin equals the lowest of four calculations:
Texas Comptroller's website:
Franchise Tax: comptroller.texas.gov/taxinfo/franchise
Tax Rates: comptroller.texas.gov/taxinfo/franchise/rates
Frequently Asked Questions: comptroller.texas.gov/taxinfo/franchise/faq_rpt_pay