|Taxes & Incentives|
The SAEDF staff is available to prepare an individualized informational package on taxes and incentives specific to your needs and potential location in San Antonio. Call us for a consultation. We can help you explore the advantages San Antonio has to offer.
Sales Tax Rate Information of Municipalities in Bexar County
For information on sales tax rate of municipalities in Bexar County, click here.
Sales Tax Rate Information of
|BEXAR COUNTY||2011 RATE|
|Hill Country Village||2.000%|
|Source: Texas Comptroller|
No State Personal Income Tax
Texas levies no individual income taxes, joining six other states with the same policy. In addition to collecting no personal income taxes, the state collects no corporate income taxes.
No Unitary Tax
Businesses and individuals find the Texas system extremely favorable. In addition to paying no personal income tax or state property taxes, there is no unitary tax. For more information about Texas' tax climate, click here.
Texas Sales and Use Tax
A sales tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. The use tax is a tax on the storage, use or consumption within the state of Texas of taxable items purchased, leased or rented on which the Texas sales tax has not been paid. The use tax is applicable to taxable items purchased out-of-state and later used in Texas, and to any taxable merchandise or inventory purchased tax-free for resale which was converted to personal use. The state tax of 6.25% and any applicable local tax are due for the reporting period in which the item was converted to personal use. For more information about sales and use tax rates, visit the Texas Comptroller website at www.window.state.tx.us/taxinfo/sales.
Texas Sales and Use Tax Exceptions
Texas businesses are exempt from paying state sales tax and use tax on labor for constructing new facilities.
Other exceptions include tangible personal property which becomes a component part of a manufactured product or will be consumed in processing; sales delivered out-of-state; sales for resale; and a number of other selected items, including grocery food products and prescription medicines. Electricity and gas are exempt from sales tax if more than 50% of such energy is consumed in the manufacturing process.
Manufacturing equipment is exempt from sales tax. This exemption is applicable to any new and/or used equipment (including replacement parts with a life span of six months or more), whether purchased in or out-of-state. This exemption also applies to manufacturer’s pollution control equipment. For more information about Texas sales and use tax exceptions, visit the Texas Comptroller website at www.window.state.tx.us.
Texas levies an annual franchise tax on companies with liability protection, including partnerships, limited partnerships, limited-liability partnerships, professional associations, and business trusts, to name a few. The underlying tax base is on a business’ margin rather than net income or net worth resulting in a primary tax rate of 1%. However, trade businesses engaged primarily in wholesale or retail activities would pay 0.5% in recognition of the low profit margins basis to the industry. Find out more about franchise taxes at www.window.state.tx.us/taxinfo/franchise/index.html.
An ad valorem tax, a local property tax, is levied on the real property of individuals, proprietorships and corporations, whether domestic or foreign. Total tax liability is determined by applying tax rates to an appraisal done by the Bexar County Appraisal District, to which all area taxing authorities adhere. In San Antonio, the taxing districts include the city, county, various school districts and several other taxing authorities. To see the 2012 property tax rates, click here.
Some personal property used for businesses is also subject to the same rates, including production machinery and equipment and non-production machinery and equipment. Find out more about property taxes at www.bcad.org.
|2012 Property Tax Rates|
|Authority||Rate per $100 Valuation|
|City of San Antonio||0.56|
|Alamo Community College District||0.14|
|Independent School District||Rate per $100 Valuation|
|South San Antonio||1.45|
|Municipalities||Rate per $100 Valuation|
|Hill Country Village||0.09|
|City of Somerset||0.70|
|Source: Bexar County Appraisal District|
Unemployment Insurance Tax
The unemployment insurance tax is paid on taxable wages up to $9,000 per employee. Each new employer pays 2.7% or the industry average, whichever is greater. After six calendar quarters, most employers are eligible for a computed tax rate. Find out more about unemployment insurance taxes by visiting www.twc.state.tx.us.
San Antonio, Texas 78205