Tax Structure

Local and state tax rates are favorable to Midland residents and businesses.

Property Tax

Midland County has a total of five taxing entities. Depending on the firm's location, city taxes may not be imposed. Following are the 2007 tax rates per $100 of assessed value:
 

*Source: Midland Central Appraisal District, Midland, Texas - updated 1/08
Income Tax

Texas has no personal or corporate income tax.

Franchise Tax

Texas has amended its state statutes, which affect franchise tax reports due on or after January 1, 2008. The new franchise tax is now effectively a gross margins tax. A calculator provided by the State Comptroller's office is available to assist you in estimating the impact, if any, on your business.

For more information about the Texas Corporate Franchise Tax, visit the
Texas Comptroller of Public Accounts website:
http://www.window.state.tx.us/taxinfo/franchise/index.html

The franchise tax rate is $2.50 per $1,000 in net taxable capital and net taxable surplus or 4.5% of earned income, whichever is greater. The franchise tax is imposed on corporations and limited liability companies chartered/organized in Texas or doing business in Texas. Sole proprietorships and partnerships are not subject to the tax.

Sales & Use Tax

Midland has three Sales & Use Tax rates. A location outside of the city exempts the firm from the city rate. The current rates are as follows: 

State	6.25%
City	1.50%
County	0.50%
Total	8.25%

*Source: Texas Comptroller of Public Accounts - updated 1/08