1. Texas Revenues I
GOVT 2306, Module 12

2. State and Local Tax Burden
Texans pay taxes not just to the state government but to cities, counties, school districts, and special districts as well.

3. In contrast, most other taxes in Texas are relatively high.
Texas = No Income Tax
State government in Texas generates less revenue per capita than do its counterparts in most other states primarily because Texas is one of only seven states without an income tax.
In contrast, most other taxes in Texas are relatively high.

4. This is for all states, not just Texas.

6. Texas = No Income Tax

7. City Income Taxes
Some cities assess income taxes as well. For example, New York City has four income tax brackets with rates ranging from % to %, depending on the taxpayer’s income.  Residents of New York City pay federal, state, and local income taxes.

8. You Are Dwight Howard’s Accountant
Dwight Howard left the Los Angeles Lakers in 2013 to sign a free agent contract with the Houston Rockets paying him $23 million a year. Assuming the Lakers were willing to match the offer, did Howard do the right thing?
Why is this man smiling?
Yes. Howard would take home more money in Houston because Texas does not have a state income tax. The top California income tax rate is more than 10 percent.

9. California Income Tax

10. Corporate Income Tax

11. Property Taxes

12. More Property Taxes

13. Sales Taxes

14. What You Have Learned
How does the tax burden in Texas compare with that of other states?
Which major tax does Texas not have that most other states have?
Are property and sales taxes in Texas relatively high, relatively low, or average?