Taxes

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

NO

State income Tax

YES

Right-to-Work State

Sales & Use Tax

Entity Sales Tax Rate
State of Texas 6.25%
City of Leander 1%
Capital Metro 1%
Total Rate 8.25%

Property Tax (Ad Valorem)

Entity Property Tax Rate (Per $100 valuation)
City of Leander $0.479699
Williamson County $0.440846
Leander ISD $1.33700
Austin Community College $0.1048

Hotel Occupancy Tax (HOT)

Entity Rate
State of Texas 6%
City of Leander 7%
Total Rate 13%

Income Tax

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.

Franchise 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

Unemployment Insurance

  • 2.7% general entry rate charged on 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%.