Advantages of the S Corporation:
Disadvantages of the S Corporation:
Texas' 2009 Business Tax Climate Ranks 7thTexas ranks 7th nationally in the nations State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: New Mexico (26th), Oklahoma (18th), Arkansas (35th) and Louisiana (33rd).
Texas' 2012 Business Tax Climate Ranks 9thTexas ranks 9th nationally in the Tax State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.
Tax Freedom Day Arrives on April 7 in TexasTax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, Texas taxpayers work until April 7 to pay their total tax bill, ranking it 25th highest in the nation. That's 5 days before national Tax Freedom Day (April 12).
Texas' State and Local Tax Burden Among Nation's LowestTexas' state and local tax burden is currently estimated at 7.9% of income (45th nationally), below the national average of 9.8%. Compared to the 1977 data, Texas had a tax burden of 7.9% (48th nationally), remaining relatively constant. Currently Texas taxpayers pay $3,197 per capita in state and local taxes.
Texas Levies No Personal Income TaxesTexas levies no individual income taxes, joining six other states with the same policy.
Texas Levies a Gross Receipts TaxTexas, in addition to collecting no personal income taxes, collects no corporate income taxes. However, the state recently instituted a gross receipts tax called the Texas Margins tax. It went into effect January 1, 2007. Texas joins Washington, Delaware, Michigan and Ohio as the only states that levy an economy-wide gross receipts tax.
Texas Sales and Excise TaxesTexas levies a 6.25% general sales or use tax on consumers, slightly above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,624 per person, which ranks 14th highest nationally. Texas' gasoline tax stands at 20 cents per gallon, ranking 36th highest nationally. Texas' cigarette tax stands at $1.41 per pack of twenty and ranks 21st highest nationally. The sales tax was adopted in 1961, the gasoline tax in 1923 and the cigarette tax in 1931. 50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates 50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Texas Property Taxes Comparatively HighTexas's local governments collected $1,404.76 per capita in property taxes during fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. Texas is one of the 13 states that collect no state-level property taxes. Its per capita property tax collections in FY2006 rank 13th highest nationally. State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Texas is a Donor StateTexas taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Texas citizens received approximately $0.94 in the way of federal spending. This ranks the state 35th nationally and represents a slight decrease from 1995, when Texas received $0.95 per dollar of federal taxes paid (ranking them 37th nationally).
Reference - Tax Foundation
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