Taxes

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Texas has built a reputation as the best state in the nation for business being selected as the best state for business a record 13 times in a row by Chief Executive Magazine. A major factor in this ranking is the lack of a corporate or personal income tax and the low levels of state and local taxes.

"Best State for Business"
Chief Executive Magazine, 2017

Businesses locating in Richmond will enjoy a business climate that is among the most competitive in the nation. 

Tax Rates & Information

State of Texas

6.25%

City of Richmond

1.5%

Development Corp. of Richmond

0.5%

Total

8.25%

New Rates to be Approved in early September to as Low as $0.66.

City of Richmond

$0.69

Fort Bend County

$0.4447

Lamar Consolidated ISD

$1.32

Fort Bend Drainage District

$0.01335

Total Rate

$2.4547

State of Texas

6%

City of Richmond

7%

Total Rate

13%

Texas does not have any form of personal or corporate income tax.

In fact, Texas is 1 of 7 states in the nation that do not levy an income tax. 

  • 0.75% of margin for most taxable entities or 0.375% for entities primarily engaged in retail or wholesale trade. 

  • 0.331% for entities with $20 million or less in total revenue. 

  • Tax does not apply to sole proprietorships, general partnerships with individual owners, nonprofits or other specific entities

  • More information on the franchise tax is available from the State Comptroller Website.

  • 2.7% general entry rate charged on the first $9,000 of wages per employee. 

  • Reassessed after 6 quarters and charged at own experience rate. 

  • Effective tax rate ranges from 0.26% to 6.25%.