A new report from the Tax Foundation confirms what many businesses and taxpayers already know: Texas’ tax climate is among the most favorable in the nation.
Compared to all other states, Texas’ combined state-local tax burden ranked as the 45th lowest in the nation for fiscal 2009. Measured as a percentage of income, Texas taxpayers paid, on average, 7.9 percent of their income in taxes, up slightly from the previous year (+0.3 percent) but still much better than the national average (9.8 percent).
In terms of actual dollars paid out, the total state and local per capita tax burden shouldered by Texas taxpayers amounted to $3,197-about $1,000 less than the national average.
Other highlights from the report include: