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.
Texas does not allow cities to impose business income or gross receipts taxes (Texas Tax Code preemption). Companies operating in Frisco pay only the state franchise tax under Tax Code Chapter 171, with a no-tax-due threshold around $2.47 million in annualized revenue (indexed). Above that, rates run 0.375 percent (retail/wholesale) to 0.75 percent (other) on the lower of three margin calculations. Frisco's tax-friendly profile, combined with Collin County's competitive property valuations, has helped attract corporate HQs including the Cowboys at The Star and PGA HQ.
Late franchise reports trigger a $50 penalty plus 5 to 10 percent of tax due plus interest; delinquent accounts forfeit corporate privileges until cured under Comptroller rules.
See how other cities in Collin County handle business tax classification.
See how Frisco's business tax classification rules stack up against other locations.
Quick Compare
Help us keep this page accurate. If you notice an error or outdated information, let us know.