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:
No corporate or individual state income tax.
The 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.
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% |
