The Victoria region & Texas offers unprecedented tax advantages for business success!
Texas and the Victoria region understand the importance of taxes on local businesses, beginning with the fact neither levy a corporate or individual income tax. The Victoria County Central Appraisal District and Texas Comptroller’s office provides information on local taxes and assessments.
Texas was ranked as the #14 state in the country by the Tax Foundation for its 2022 Business Tax Climate. Beyond the lack of corporate or individual income taxes, it points to the low state sales taxes and property taxes as significant contributing factors.
Texas has no state property tax. Local governments and special taxing districts levy taxes on real and tangible personal property. All property is appraised at full market value, and taxes are assessed by local county assessors on 100% of appraised value.
2021-2022 Property Tax Values (Taxes per $100 valuation)
The Texas franchise tax is a privilege tax imposed on each corporation and limited liability company chartered/organized in Texas or doing business in Texas. For franchise tax purposes, the term 'corporation' also includes a bank, state limited banking association, savings and loan association, limited liability company, professional limited liability company, a corporation that elects to be an S corporation for federal income tax purposes, and a professional corporation.
Sales & Use Tax
The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. Cities add 1.5% of sales tax Counties at 0.5% of sales tax, totaling 2.0% making the total combined rate local and state 8.25%.
Businesses that employ one or more individuals may be subject to the state unemployment tax. For new employers, the maximum amount of taxable wages per employee, per calendar year is set by statute and is currently $9,000. Texas law sets an employer's entry-level tax rate at their NAICS industry average or 2.7 percent, whichever is higher. For experienced employers, the minimum effective tax rate for 2023 is .31% and the maximum effective tax rate is 6.31% with an average experienced tax rate of 0.93%.