State and Local Taxes

Texas taxpayers are the best arbiters of how their money is spent – not politicians. Given this premise, Texas state and local governments should aim to keep taxes as low as possible to keep more money in the pockets of citizens around the state. While the lack of a state income tax does give Texas a leg up against most other states in attracting businesses and people to move here, there are still other areas in tax policy Texas can improve upon to lower the tax burden on its citizens.

For example, Texas has the 12th highest combined average state and local sales tax at 8.12% and 14th highest property tax collections per capita at $1,635. Texas also lags behind 16 other states, including Delaware, New Hampshire, Virginia, and Colorado in overall tax burden (Tax as a percentage of personal income). So, while Texas does have a competitive edge in many areas, there is more that can be done at the state and local levels to lower taxes and make Texas the most prosperous and economically free state in the country.