Texas Governor Greg Abbott has repeatedly said Texas is #1 for business. Over the past few years, several businesses have moved operations to the Lone Star State. One highly known one is Elon Musk and Tesla which set up headquarters in Austin in December 2021 at 13101 Harold Green Road. Tesla still has operations in Fremont, California.
On Governor Abbott’s website, it claims they have the most Fortune 500 businesses in Texas. In addition, Abbott states that Texas provides job-creating capital investments and leads all states for small business growth.
No state tax helps businesses as well as tax incentives that cities provide to entice them to come to Texas.
Governor Abbott knows there is another area that he needs to improve. It’s the taxes you pay on owning a home. Despite a homestead exemption, Texans pay a lot in property taxes.
In the March 2023 issue of Kiplingers, an article provided the best and worst states for homeowners. Well, Texas wasn’t in the top 10 for the most-tax friendly state. Several southern states made it to this list including Nevada, South Carolina, and Arizona.
Texas was among the least tax-friendly state.
The Lone Star state was ranked number 10 behind these states:
- New Jersey
- Illinois
- Kansas
- Vermont
- Connecticut
- New York
- Iowa
- Nebraska
- Wisconsin
Texas doesn’t have state taxes, but it makes up for it in other ways. Sales tax is listed as 8.2% which is the 14th highest in the country. Then the median property tax rate is $1,599 per $100,000 of the assessed value of the home.
Overall, taxes in Texas are the seventh highest in the United States.
But the Texas legislature is working on lowering property taxes and an announcement should be made soon as they work on a few more details mentioned here.
This Dallas realtor explains how to protest your property taxes to pay a lower fee.
Do you think Texas has high property taxes?
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