State & Local Taxes

 

Property Tax

Midland County has a total of six taxing entities. Dependent upon the firms location, city taxes may not be imposed. Following are the 2016 tax rates per $100 of assessed value.

2016 Tax Year
Description Tax Rate Per $100
Midland County 0.155992
City of Midland 0.399679
Midland Hospital 0.13505
Midland College 0.13711
Midland ISD 1.12005

Income Tax

Texas has no personal income tax. 

Corporate Frachise Tax

Texas imposes a franchise tax, frequently referred to as a “margin tax” on taxable entities organized or chartered under Texas law, and foreign (non-Texas) entities that do business in Texas.  In general, an entity is subject to the tax if state law limits the owners’ liability.  The Texas Franchise Tax rate is 1% (.5% for wholesale and retail sellers only), and begins with an entity’s total revenue, and allows applicable deductions for the largest of cost of goods sold, compensation, or 30% of total revenue.  The computed margin is apportioned to Texas, and the tax rate is applied.  Alternative, less complicated formulas may be elected by taxpayer’s with total revenue of $10 million or less.

A taxable entity, including a combined group, qualifies to file a No Tax Due Report if it meets one of the following criteria: 1) has zero Texas receipts, 2) qualifies as a passive activity for Texas Franchise Tax purposes, 3) is a real estate investment trust (REIT) that meets specific qualifications, or 4) has total annualized revenue below the no-tax-due threshold ($1,000,000 for reports due after January 1, 2010 and before January 1, 2012).

Sales & Use Tax

There are three Sales & Use Tax rates. A location outside of the city exempts the firm from the city rate. Following are the current rates.

Sales & Use Tax Chart
State 6.25%
City 1.50%
County 0.50%
Total 8.25%

This information is deemed to be from a reliable source but is not warranted in any way by the Midland Development Corporation .

The Perryman Group and TEDC present an economic development sales tax study - Catalyst for Growth: The Importance of 25 Years of Projects Facilitated by the Texas Sales Tax for Economic Development. Click here to see the full study.