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πŸ’° Local Taxes & Fees/Business Tax Classification

Business Tax Classification: Austin vs Pflugerville

How do business tax classification rules compare between Austin, TX and Pflugerville, TX?

Austin has fewer restrictions than Pflugerville.

Austin, TX

Travis County

Few Restrictions

Texas does not allow municipal gross-receipts taxes, so Austin has no local business tax classification scheme; businesses owe only the Texas franchise tax through the Comptroller plus property tax on tangible personal property assessed by Travis Central Appraisal District.

View full Austin rules β†’

Pflugerville, TX

Travis County

Some Restrictions

Travis County businesses pay the Texas franchise tax administered by the Comptroller rather than a local business income tax, and personal property used in business is taxed annually by the Travis Central Appraisal District.

View full Pflugerville rules β†’

Key Facts Comparison

FactAustinPflugerville
Local business taxNone-
State franchiseTX Tax Code Ch. 171-
No-tax-due threshold$2.47M revenue (2026)-
Sales tax total8.25 percent-
Property renditionAnnual to TCAD-
Franchise no-tax threshold-About 2.47 million
Sales tax combined-8.25 percent
BPP rendition due-April 15
Local income tax-Prohibited statewide

Highlighted rows indicate differences between cities.

Austin FAQ

Does Austin charge a local business license tax?

No. Texas law preempts municipal gross-receipts and general business taxes. Industry-specific permits (food, alarm, taxi, STR) carry licensing fees, but Austin has no LA-style business-tax classification scheme.

What state tax does my Austin business owe?

Texas franchise tax on margin for entities above the no-tax-due threshold (about $2.47 million revenue in 2026), filed annually with the Comptroller. Sole proprietors and most small LLCs file no-tax-due reports.

Pflugerville FAQ

Does Travis County tax business income?

No. Texas bans local income taxes; the state franchise tax administered by the Comptroller is the closest equivalent and applies above a revenue threshold.

What is a business personal property rendition?

An annual filing with TCAD listing taxable equipment, inventory, and furniture; failure to file allows TCAD to estimate value and adds a ten percent penalty.

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