Taxes

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 2023-24 tax rate of $2.219566 per $100 of valuation.

Tax Entity	Current Fiscal Year 2023-2024
City of Kilgore	$0.599000
Gregg County	$0.278066
Kilgore ISD	$1.167500
Kilgore College	$0.175000
TOTAL	$2.219566

*All property assessed per $100 Valuation

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%