Dallas County, TX Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- State franchise tax
- TX Tax Code Ch. 171
- No-tax-due threshold
- $2.47 million revenue
- Top rate
- 0.75% non-retail
- County business tax
- None
- Administrator
- Texas Comptroller
Summary
Texas Tax Code Chapter 171 imposes a single state franchise tax on most businesses operating in Dallas County. Texas does not allow city or county business gross-receipts taxes, so Dallas County has no business-tax classification scheme like California or Illinois.
Sec. 171.001. TAX IMPOSED. (a) A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state.(b) The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.(c) The tax imposed under this section or Section 171.0011 is not imposed on an entity if, during the period on which the report is based, the entity qualifies as a passive entity as defined by Section 171.0003.(d) Notwithstanding Subsection (a), the tax imposed under this chapter is not imposed on a taxable entity that qualifies as a new veteran-owned business as def
Full Breakdown
Under Texas Tax Code Chapter 171, the Texas Comptroller administers a franchise tax (also called margin tax) on corporations, LLCs, partnerships, and other taxable entities doing business in Texas, including all of Dallas County. The 2024 no-tax-due threshold is $2.47 million in revenue; entities below file a public information report only. Tax rates run 0.375% (retail/wholesale) to 0.75% (other) of taxable margin. Texas constitutional and statutory rules (Local Gov Code 1.005 and Tax Code preemption) prevent counties and cities from layering local gross-receipts business taxes on top. Dallas County levies only ad valorem property tax (Tax Code Ch. 26) and the 7% HOT (Tax Code 352). Specialty business levies apply only via state-authorized chapters such as motor fuel and tobacco.
Violations & Fines
Failing to file or pay franchise tax under Tax Code 171.251 triggers 5% late penalty rising to 10%, plus interest and possible forfeiture of right to do business. The Comptroller may revoke registration. Dallas County has no separate business-tax regime.
Frequently Asked Questions
Does Dallas County impose a separate business tax?
How is my Dallas County business taxed by the state?
Sources & Official References
Other rules in Dallas County
Texas rules heatmap·Compare Dallas County to another location·View the Texas local taxes & fees overview
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