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

Few Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified May 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.

City-specific rules exist: Austin has its own business tax classification rules that differ from Travis County's county-level regulations. If you live in Austin, check the city-specific page instead.

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.

Source: TX Tax Code Ch. 171View official code

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?
No. Texas bans local income taxes; the state franchise tax administered by the Comptroller is the closest equivalent and applies above a revenue threshold.
What is a business personal property rendition?
An annual filing with TCAD listing taxable equipment, inventory, and furniture; failure to file allows TCAD to estimate value and adds a ten percent penalty.

Sources & Official References

Other rules in Travis County

All Travis County rules

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