Taxes

Sample of newly built homes in Buda, Texas

Texas boasts comparatively low business taxation, with some small enterprises exempt from taxes entirely. Coupled with the absence of personal income tax, business owners stand to benefit financially. This dual advantage positions Texas as a compelling choice for initiating and operating a small business.

Property Taxes and Sales Taxes

Property Taxes

  • Hays County Property Tax Rate 0.2875%
  • City of Buda Property Tax Rate 0.3379%

If the business owns tangible personal property that is used to produce income, the property must be reported on a rendition form to the Hays Central Appraisal District, after January 1 and no later than March 31, each year. Business owners must report all inventories, equipment, and machinery. For additional information, contact the Hays Central Appraisal District.

Hays Central Appraisal District 512.268.2522

Hays County Tax Rates

Sales Taxes

The minimum combined 2024 sales tax rate for Buda, Texas is 8.25%. This is the total of state, county and city sales tax rates.

  • Texas Sales Tax Rate 6.25%
  • Hays County Sales Tax Rate 0.5%
  • City of Buda Sales Tax Rate 1.5%

State Taxes

Texas is among only six states that forego corporate income taxes, making it a highly attractive location for businesses seeking significant financial incentives. Overall, Texas boasts the fifth-lowest tax burden per capita. On average, residents pay 7.6% of their income in state and local taxes, which is below the national average of 10.3%.

  • Businesses with revenues under $2.47 million pay no tax
  • Businesses with revenues of $20 million or less pay 0.331%
  • Larger businesses pay either 0.375% or 0.75%, depending on the type of business

Federal Taxes

Information regarding federal income taxes, tax identification numbers, business tax credits and employment tax regulations may be obtained by contacting the following agencies:

Income Taxes, Tax Identification Numbers and Business Tax Credits

Internal Revenue Service
825 East Rundberg Lane, Suite H-4
Austin, Texas 78753
800.829.1040 or 800.829.4059 (TDD)
Business Tax Kit and Other Publications: 800.829.3676 or 800.829.4059 (TDD)

Additional Resources

For more detailed information and assistance with your business taxes, consider consulting the following resources: