Taxes/Business Costs
Income Tax
Texas has no personal income tax or corporate income tax.
Franchise Tax
Texas does have a franchise tax in which corporations pay the greater of the tax on net taxable capital or net taxable earned surplus. Assistance in determining the specific franchise tax burden is available through the Texas Comptroller of Public Accounts
Property Tax
The City of Arlington and other taxing districts levy taxes on real and tangible personal property. The State of Texas has no state property tax. All property is appraised at full market value, and taxes are assessed by local county assessors on 100% of appraised value. The total tax rate is the sum of the rates of all applicable taxing units including cities, counties, schools, and special districts.
The current Tax Rate for the City of Arlington and associated taxing districts is as follows:
| Property Tax Rates (per assessed $100) |
|
|
|
| City of Arlington |
$0.6480 |
| Tarrant County |
$0.2640 |
| Tarrant County College |
$0.1380 |
| Tarrant County Hospital |
$0.2279 |
| Arlington ISD |
$1.2720 |
|
|
| Total Tax Rate |
$2.5498 |
Sales & Use Tax
The combined state and local sales and use tax is currently levied at 8%.
The State of Texas offers sales and use tax exemptions on machinery and equipment utilized in the manufacturing process. Exemptions to the sales & use tax include:
-
Purchases of machinery and equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax.
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Natural gas and electricity when sold to commercial businesses that are "predominantly" manufacturing.
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Groceries and over-the-counter drugs and medicines, as well as prescription drugs.