Travis County, TX Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Franchise no-tax threshold
- About 2.47 million
- Sales tax combined
- 8.25 percent
- BPP rendition due
- April 15
- Local income tax
- Prohibited statewide
Summary
Travis County businesses pay the Texas franchise tax administered by the Comptroller rather than a local business income tax, and personal property used in business is taxed annually by the Travis Central Appraisal District.
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.
Full Breakdown
Texas does not impose a state or county personal income tax and prohibits local income taxes by constitutional amendment. Businesses with taxable margin above the no-tax-due threshold (approximately $2.47 million in 2024) file the Texas franchise tax under Tax Code Chapter 171. Travis Central Appraisal District values business personal property like equipment, inventory, and furniture annually under Tax Code Chapter 22, with renditions due April 15. Sales tax combines six and a quarter percent state plus two percent local in most of the county, totaling eight and a quarter percent.
Violations & Fines
Failing to file franchise tax, business personal property rendition, or sales tax returns triggers penalties of ten percent or more, interest, forfeiture of corporate privileges, and state tax liens against business assets.
Frequently Asked Questions
Does Travis County tax business income?
What is a business personal property rendition?
Sources & Official References
Other rules in Travis County
Texas rules heatmap·Compare Travis County to another location·View the Texas local taxes & fees overview
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