Taxes on business affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of the state’s economy. The state of Texas has a business-friendly tax structure with no state income tax. The Texas tax structure includes a Franchise Tax, Property Tax, and Sales and Use Tax.
Franchise Tax
The Texas Franchise Tax is imposed on each taxable entity formed, organized, or that does business in Texas. The tax is based on a taxable entity's margins and is computed in several ways.
Tax Entity Margins
Total revenue times 70 percent
Total revenue minus the cost of goods sold (COGS)
Total revenue minus compensations
Total revenue minus $1 million (effective Jan. 1, 2014)
Qualifying businesses can choose to file using the EZ computation
Property Tax
Texas has no property tax at the state level, and is levied on tangible real and personal property by local governments and special taxing districts. Kilgore has a low total 2021-2022 tax rate of $2.2941 per $100 of valuation.
Tax Entity |
Current Fiscal Year 2021-2022 |
|---|---|
City of Kilgore |
$0.5990 |
Gregg County |
$0.2975 |
Kilgore ISD |
$1.2226 |
Kilgore College |
$0.1750 |
TOTAL |
$2.2941 |
Sales and Use Tax
The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. Kilgore’s combined rate, after city and county taxes totals 8.25%.
City - 1.50%
County - 0.50%
State - 6.25%