Denton’s Favorable Tax Climate Leaves More Money to Your Bottom Line

Sales/Use Tax Rates

Taxing Entity Rate
State of Texas 6.25%
Local (DCTA & City) 1.34%
Denton County Transportation Authority 0.22%
City of Denton 0.56%
Total Local Taxes 2.12%

Texas is an extremely advantageous state to live, work and operate a business. The Tax Foundation ranked Texas as the sixth-lowest state/local tax burden for individuals in the country. The contributing factors are numerous, including:

checkNo corporate or individual state income tax.

checkThe combined sales tax in Denton in 2022 is 8.25%, based on a state sales tax rate of 6.25%, 1.5% city tax and 0.50% tax rate for Denton County Transportation Authority. 

The Texas Comptroller is the ultimate resource for understanding the tax scenarios for your specific residence or business, including sales tax permits applications, franchise tax research and property taxes. 


Property Tax

Residents and businesses in Denton County can estimate their annual property taxes via the County’s Property Tax Estimator. 2022 real and personal property tax rates are:

Tax Per $100 Valuation Tax Rate
City of Denton $0.590454
Denton County $0.224958
Denton Independent School District $1.483200
Total $2.298612

Source: Denton Central Appraisal District

Franchise Tax

The franchise tax is imposed on each taxable entity chartered or organized in Texas or doing business in Texas (List of Entities Subject to Franchise Tax). The following rates, thresholds and deduction limits apply to reports originally due on or after January 1, 2020 and until December 31, 2021:

No Tax Due Threshold $1,180,000
Tax Rate (retail or wholesale) 0.375%
Tax Rate (other than retail or wholesale) 0.75%
Compensation Deduction Limit $390,000
EZ Computation Total Revenue threshold $20 million
EZ Computation Rate 0.331%

Visit the Texas Comptroller of Public Accounts website for more franchise tax information.

Sales and Use Tax

The Sales and Use tax is 8.25% on taxable sales. The breakdown is:

State of Texas 6/25%
City of Denton 1.50%
Denton County Transportation Authority 0.50%
Total 8.25%