Local Taxes
Texas’ tax structure is different from most states. We do not collect an income tax at the state or local level. The main tax for businesses is property taxes, collected at the local level; sales and use taxes, collected at local and state level; and a franchise tax, collected at the state level. There are Midlothian local tax incentives and grant opportunities available for businesses looking to relocate or expand.
Sales Tax
Sales and Use Tax are applicable to qualifying goods and services. Sellers are responsible for collecting and remitting the correct amount of sales tax to the Texas Comptroller’s office.
State – 6.25%
City – 1.0%
Midlothian Economic Development – 0.5%
Midlothian Community Development Corporation 0.5%
Total 8.25%
Property Tax
Property Tax is applicable to the full-market value of real property (land and improvements) and personal property (machinery, equipment, inventory, vehicles, etc.). The property tax rate is based on $100 per taxable value.
- City – 0.65
- School District – 1.0708
- County – 0.273992
Total – 1.994792
Franchise Tax
Franchise Tax must be filed and paid by each taxable entity doing business in Texas. The Texas Comptroller provides detailed information on the tax, rates and filing information that can be found on their website.
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