Frisco vs Plano
How do business tax classification rules compare between Frisco, TX and Plano, TX?
Frisco and Plano have similar restriction levels.
Frisco, TX
Collin County
Texas has no city or county business tax; companies operating in Frisco pay only the state franchise tax administered by the Comptroller, with a generous no-tax-due threshold favoring small businesses.
View full Frisco rules →Plano, TX
Collin County
Texas bars municipal income or gross-receipts business taxes, so Plano funds itself through property tax, sales tax, hotel tax, and franchise fees, leaving businesses with state franchise tax obligations and minimal city-specific tax classification.
View full Plano rules →Key Facts Comparison
| Fact | Frisco | Plano |
|---|---|---|
| City business tax | None permitted | - |
| Franchise threshold | About $2.47M revenue | About 2.47 million |
| Top rate | 0.75 percent margin | - |
| Filer | TX Comptroller | - |
| City income tax | - | Prohibited statewide |
| Sales tax total | - | 8.25 percent |
| Property tax base | - | Ad valorem only |
Highlighted rows indicate differences between cities.
Frisco FAQ
Does Frisco have a head tax?
No. Texas law preempts cities from imposing business income, gross receipts, or per-employee taxes. Frisco relies on property tax and sales tax allocations for revenue.
Is sole proprietor income taxed?
Sole proprietors and general partnerships are exempt from Texas franchise tax. Most LLCs and corporations file annually even if below the no-tax-due threshold.
Plano FAQ
Does Plano charge a city business income tax?
No. Texas constitutionally prohibits municipal income taxes. Plano businesses pay only state franchise tax, federal income tax, sales tax, and city property tax on owned real property and equipment.
What is the total sales tax rate in Plano?
8.25 percent, comprising the 6.25 percent Texas state rate, 1 percent city sales tax, and 1 percent dedicated to economic development and crime control districts under Tax Code Chapter 321.
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