Dallas, TX Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- City income tax
- None in Dallas
- State franchise tax
- TX Tax Code Chapter 171
- Hotel occupancy tax
- 7 percent city rate
- Personal property tax
- Filed with Dallas CAD
- Administrator
- Office of City Controller
Summary
Texas has no city business income tax, but Dallas businesses pay state franchise tax to the Texas Comptroller and various Dallas-specific levies through the Office of the City Controller. Hotel occupancy, mixed-beverage gross receipts, and parking are city-administered.
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
Texas does not authorize a municipal income tax, and Dallas does not impose one. Businesses instead remit the state franchise tax (a margins-based gross receipts tax) directly to the Texas Comptroller under Texas Tax Code Chapter 171. Dallas administers narrower industry-specific levies through the Office of the City Controller and City Treasury. These include the 7 percent municipal hotel occupancy tax, mixed-beverage gross receipts shares, alarm permit fees, taxicab and TNC permitting under Chapter 18A, and registration fees under Code Chapter 41. Businesses also file with the Dallas Central Appraisal District for personal property tax on tangible business assets. Specialized licenses apply to dance halls and pawnbrokers.
Violations & Fines
Failure to remit Dallas hotel occupancy or mixed-beverage taxes can trigger interest, late fees, and permit revocation. Failure to file state franchise reports leads to forfeiture of corporate privileges by the Comptroller and potential personal liability for officers.
Frequently Asked Questions
Does Dallas charge me a city business income tax?
What business filings does Dallas require beyond the state?
Sources & Official References
Other rules in Dallas
Texas rules heatmap·Compare Dallas to another location·View the Texas local taxes & fees overview
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