Taxes

One of the key advantages in our area is that neither Texas nor Garland imposes any of the following:

  • Personal income tax
  • State property tax
  • Local Occupation tax
  • Local wage tax
  • Gross receipts tax
Property Tax Rates*
City of Garland $0.70460
Dallas Co. $0.25310
Hospital District $0.27940
College District $0.12423
Garland ISD $1.46000
Total $2.82133

*Per $100 in assessed value (Updated November, 2017)

Triple Freeport Exemption

Business personal property that is only located in Texas for a temporary period of time (less than 175 days) is considered freeport goods. Garland businesses are exempt from paying business personal property tax on goods that have been acquired in or imported into Texas to be forwarded out of the State within 175 days.

Sales/ Use Tax
City 1.00%
MTA 1.00%
State 6.25%
Total 8.25%
Hotel/Motel Tax
City 7.00%
State 6.00%
Total 13.00%

Franchise Tax

The Texas franchise tax is a privilege tax imposed on each taxable entity chartered or organized in Texas or those doing business in Texas. The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs, business trusts, professional associations, business associations, joint ventures and other legal entities.

The revised franchise tax does not apply to:

  • Sole proprietorships (except the tax does apply to single member LLCs filing as a sole proprietor for federal income tax purposes)
  • General partnerships directly and solely owned by natural persons (except the tax does apply to all limited liability partnerships)
  • Entities exempt under Subchapter B of Chapter 171
  • Passive entities (as defined under TTC 171.0003). Note that some passive entities have an annual reporting requirement to affirm their passive status.

The franchise tax rates are:

  • 1.0% (.01) for most entities
  • 0.5% (.005) for qualifying wholesalers and retailers
  • 0.575% for those entities with $10 million or less in Total Revenue (annualized per 12 month period on which the report is based) electing the E-Z Computation

Specific tax information is available through the Texas Comptroller of Public Accounts and entities listed below.