Texas is a very attractive state for individuals, as it has no individual income tax. However, businesses are subject to a 6.25% corporate income tax rate.
Understanding the cost of apportionment in the state can help you accurately report earnings to the IRS and local government.
Corporations & Partnerships
- Filing Requirements. S Corps and Partnerships are subject to franchise tax. Franchise tax rates, thresholds and deduction limits vary by report year.
- Allocation and Apportionment. Texas follows the single-factor rule in sourcing receipts from the performance of services to the state.
Employees & individual filers
Texas does not impose personal income tax.
Download our Multi-State Tax Filing Requirements Guide
Ensuring Accurate Tax Filings
Consulting an expert CPA can help you keep a handle on different laws and tax implications.
Fusion CPA has a team of certified public accountants who are highly skilled in handling multi state taxes. We’re positioned to help you take the stress out of tax season, so you can focus on what really matters.
To see how we can help you with a proactive tax strategy to save you time and money, schedule A Discovery Call with one of our CPAs.
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