Does Frisco, TX have its own business tax classification ordinance?

No. Frisco, TX does not appear to have a local business tax classification ordinance, Texas state law applies instead. The rules summarized on this page come from Texas Tax Code.

Key Facts Ordinance Text Full Breakdown Violations FAQ Sources More in Frisco

Frisco, TX Local Taxes & Fees: Business Tax Classification (2026)

Few Restrictions

Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

City business tax: None permitted
Franchise threshold: About $2.47M revenue
Top rate: 0.75 percent margin
Filer: TX Comptroller

Summary

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.

Sec. 171.002. RATES; COMPUTATION OF TAX. (a) Subject to Sections 171.003 and 171.1016 and except as provided by Subsection (b), the rate of the franchise tax is 0.75 percent of taxable margin.(b) Subject to Sections 171.003 and 171.1016, the rate of the franchise tax is 0.375 percent of taxable margin for those taxable entities primarily engaged in retail or wholesale trade.(c) A taxable entity is primarily engaged in retail or wholesale trade only if:(1) the total revenue from its activities in retail or wholesale trade is greater than the total revenue from its activities in trades other than the retail and wholesale trades;(2) except as provided by Subsection (c-1), less than 50 percent of the total revenue from activities in retail or wholesale trade comes from the sale of pr...

Source: Texas Tax CodeView official code

Full Breakdown

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.

Violations & Fines

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.

Frequently Asked Questions

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.

Sources & Official References

[1]TX Tax Code Ch. 171

Other rules in Frisco

Noise Ordinances: Construction HoursSome Restrictions Parking Rules: RV & Boat ParkingSignificant Restrictions Noise Ordinances: Leaf Blower RulesSome Restrictions Noise Ordinances: Amplified Music & Outdoor SoundSome Restrictions Parking Rules: Driveway RulesSignificant Restrictions Parking Rules: Loading ZonesSome Restrictions

All Frisco rules

Texas rules heatmap·Compare Frisco to another location·View the Texas local taxes & fees overview

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.