Taxation

As any native Texan will tell you, one of the key tax advantages 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 on manufacturing companies

Below are the property tax rates and sales tax rates, all very competitive compared to Garland's neighboring cities.

Property Tax Rates



Property Tax Rates*
City of Garland $0.70460
Dallas Co. $0.24310
Hospital District $0.27100
College District $0.09923
Garland ISD $1.25330
     Total $2.57123
*Per $100 in assessed value

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 and Use Tax and Hotel/Motel Tax



Sales/Use Tax
City 1.00%
DART 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/organized in Texas or 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; and
  • 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

Please go to www.window.state.tx.us for specific information.

See also tax information in the following links: