Taxes and Rates

With no corporate income tax and no individual income tax, Texas has one of the lowest tax burdens in the country. Denver City residents find a lower tax burden than larger cities in the state.

Sales Tax

Texas imposes a state sales tax on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined state and local tax rate of up to 8.25%. The States rate of 6.25% is levied in addition to the the Denver City local rate of 1.50% for a total sales tax rate of 7.75%.

 

Income Tax

Due to the presence of sales tax, the State of Texas does not levy personal income tax. 

 

Property Tax
Governing BodyTax Rate per $100 Valuation
Yoakum County0.569032
Yoakum County FC&LR (Road & Bridge)0.931490
Denver City0.732637
Denver City ISD1.253300
Sandyland Underground Water District0.016581

*Note: these rates are listed herein as a convenience and should be verified with the Yoakum County Appraisal District

 

Corporate Income Tax

Texas has no corporate income tax at the state level, making it an attractive tax haven for incorporating a business. Texas corporations still, however, have to pay the federal corporate income tax. While Texas does not have a corporate income tax, a gross receipts style tax is applicable to all companies and serves a similar purpose. This tax is called the Texas Franchise Tax (sometimes referred to as the margin tax) that levies a 1% tax on calculated margins for businesses in Texas (retailers pay a 0.5% rate), but exempts sole proprietorships and general partnerships. Businesses can elect to deduct either the cost of goods sold or employment costs. Additional rate information and calculation methods can be found online.

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