Staff Directory

Taxes

Getting Down To Business

Texas has one of the lowest tax burdens in the country, ranking as a "Top 10 Best State" in the Tax Foundation's 2012 State Business Tax Index.  With no corporate income tax and no individual income tax, Fort Worth offers a business friendly environment in a pro-business state.

Property Tax

There is no state level property tax.  Municipalities, counties and school districts each tax real and personal property.  Total combined property tax ranges from $2.65 to $3.18 per $100 of assessed value, which in Texas is fair market value.  For example, a combined tax rate of $3.00 per $100 of assessed value would result in an annual tax bill (before exemptions, abatements or depreciation) of $3,000 on $100,000 worth of property.

TAXING JURISDICTIONS RATE PER $100

City:

 

Fort Worth

$0.855

County:

 

Tarrant (total)

$0.660867

Denton

$0.277357

Independent School District:

 

Aledo

$1.4252

Arlington

$1.3055

Birdville

$1.435

Carroll

$1.415

Castleberry

$1.4533

Crowley

$1.535

Eagle Mountain-Saginaw

$1.53

Everman

$1.2775

Fort Worth

$1.322

Godley

$1.13709

Grapevine-Colleyville

$1.31

Hurst-Euless-Bedford

$1.414

Keller

$1.54

Lake Worth

$1.67

Lewisville

$1.426

Mansfield

$1.496

Northwest

$1.375

White Settlement

$1.54

Sales and Use Tax

The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. In addition, the City of Fort Worth and the local transit authority imposes an additional 2% for a total combined rate of 8.25%.

TAXING ENTITY RATE

State of Texas

0.0625

Fort Worth

.01000

Fort Worth MTA

.00500

Fort Worth Crime Control

.00500

Total

.08250

 

Sales and use tax exemptions are offered on machinery and equipment used in the manufacturing process and on natural gas and electricity when sold to commercial businesses that are “predominately” manufacturing. 

Corporate Franchise Tax

In 2008, the State of Texas replaced the franchise tax with a margins tax in order to establish a broader, fairer tax assessed at a lower rate.  This tax is imposed on each taxable entity formed in Texas or doing business in Texas. 

 The reformed margins tax lowered the primary franchise tax rate from 4.5 percent to a tax of 1 percent of gross receipts less compensation or cost of goods sold.  (For entities primarily engaged in retail or wholesale trade, the tax rate is 0.5 percent.)  Sole proprietorships and general partnerships are exempt, as are businesses with revenue under $1,000,000.  Businesses with tax due of $1,000 or less owe no tax. 

 For more information, contact:  Texas Comptroller's Office.

Unemployment Insurance

For 2012, Texas employers will pay a minimum unemployment insurance (UI) rate of 0.61% and maximum 7.58%.  This percentage is multiplied by the taxable wages for each quarter to determine the amount of tax due for that quarter.  The taxable wage limit is also set by statute and is currently $9,000 per calendar year, per employee.

Newly liable employers will pay an entry-level rate of 2.7% on the first $9,000 of wages per employee.  Employers must pay wages a minimum of six quarters to receive an experienced rating.

 For more information, contact:  Texas Workforce Commission.

Workers Compensation

Workers’ compensation is a state-regulated insurance system that provides covered employees with income and medical benefits if they are injured on the job or have a work-related injury or illness.  The Texas Department of Insurance (TDI) Division of Worker’ Compensation regulates the state’s workers’ compensation system and certifies employers that want to self-insure.   In Texas, private employers can choose whether or not to carry workers’ compensation insurance coverage.

If employers choose to provide workers' compensation, they must do so in one of the following ways:

  • purchase a workers’ compensation insurance policy from an insurance company licensed by TDI
  • be certified by TDI to self-insure workers’ compensation claims
  • join a self-insurance group that has received a certificate of approval from TDI.

Employers should shop around to find the best rate before buying coverage. You can use the Texas Workers’ Compensation Rate Guide to learn companies’ rate levels, schedule rating, and contact information.  Rates vary and are generally based on an employer’s business classification. 

For more information, contact:  Texas Department of Insurance.