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Taxes

Tax Environment

 

Texas has built a reputation as the best state in the nation for business, being selected as the best state for business a record 13 times in a row by Chief Executive Magazine. A major factor in this ranking is the lack of a corporate or personal income tax and the low levels of state and local taxes. Businesses locating in Richmond will enjoy a business climate that is among the most competitive in the nation. 

Tax Rates

Sales & Use Tax

  • State of Texas: 6.25%
  • City of Richmond: 1.5%
  • Development Corporation of Richmond: 0.5%
  • Total: 8.25%
Property Taxes (Ad Valorem)

  • City of Richmond: $0.71
  • Fort Bend County: $0.453
  • Lamar Consolidated ISD: $1.39
  • Fort Bend Drainage District: $0.016
  • Total Property Tax (Ad Valorem) Rate: $2.569

Hotel Occupancy Tax


  • State of Texas: 6%
  • City of Richmond: 7%
  • Total: 13%

Income Tax

Texas does not have any form of personal or corporate income tax. In fact, Texas is 1 of 7 states in the nation that do not levy an income tax. 

Franchise Tax

  • 0.75% of margin for most taxable entities or 0.375% for entities primarily engaged in retail or wholesale trade. 
  • 0.331% for entities with $20 million or less in total revenue. 
  • Tax does not apply to sole proprietorships, general partnerships with individual owners, nonprofits or other specific entities
  • More information on the franchise tax is available from the State Comptroller Website.

Unemployment Insurance

  • 2.7% general entry rate charged on first $9,000 of wages per employee. 
  • Reassessed after 6 quarters and charged at own experience rate. 
  • Effective tax rate ranges from 0.26% to 6.25%. 

Copyright 2016 - Richmond Economic Development Corporation