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State & Local Taxes

State

Texas is one of only seven states that does not tax individual wage income.  The state's constitution restricts passage of a personal income tax and use of its proceeds.  Beginning in 2007, the Lone Star State will collect a gross receipts tax from some businesses.

Sales Taxes
State Sales Tax: 6.25% (food, prescription and non-prescription drugs are exempt); local option taxes can raise the rate to 8.25% .5% of which can be dedicated to economic development.

Gasoline Tax: $0.20 cents/gallon
Diesel Fuel Tax: $0.20 cents/gallon
Cigarette Tax: $1.41 cents/pack of 20

Personal Income Taxes
No state personal income tax

Retirement Income
Not taxed.

Property Taxes

Property tax is imposed by local taxing units.  For homeowners 65 and older, $10,000 (in addition to the regular $15,000 homestead exemption) of the property's assessed value is exempt from school taxes and $3,000 is exempt from other local taxes.  Once an over-65 homeowner qualifies for an over-65 homestead exemption for school taxes, that owner gets a tax ceiling for that home on school taxes.  If the homeowner improves the home (other than normal repairs or maintenance), the tax ceiling is adjusted for the new additions.

School district taxes are frozen for seniors (65 and older) and disabled persons at the level imposed on the residence the first year that the taxpayer qualified for the residence exemption.  Counties, cities, towns, and junior college districts are permitted to establish a tax freeze on homesteads of those age 65 and older or disabled.  Panola County and the City of Carthage have a “65 tax freeze” in place.

With the exception of Beckville ISD, a 3% discount is given if taxes are paid in October.

Local taxing units (counties, cities and school districts) assess and collect property taxes on all real and income-producing tangible personal property not exempt by state or federal law.  Personal property (including automobiles, airplanes, boats and travel trailers) that does not produce income is mostly exempt from taxation.

Inheritance and Estate Taxes

There is no inheritance and the estate tax is limited and related to federal estate tax collection.

Local

Local property tax rates per $100 valuation. 

 The following local exemptions are given to homesteads owned by citizens age 65 and older:

    You can find detailed information such as forms, publications, statutes, rules and more on any of these taxes by clicking here.