The State of Texas has a good reputation for being a low-tax state, but some are questioning this fact. There are many different types of local and state taxes, which can make comparisons difficult. Were tax rates and banking innovations discussed at the November 2016 Texas Banker Association’s Annual Strategic Opportunities Conference?
Texas Tax Rates
Texas has the reputation for being a business-friendly, low-tax state – Dallas was voted as the #1 city for businesses in 2015. One of the challenges is that there are many applicable taxes. Here is an attempt to make it more clear about how Texas taxes compare to other states.
There are local taxes and state taxes. State taxes can also be broken down into sales, income and property tax rates. Therefore, Dallas might have one of the lowest city tax rates in the country, but how does Texas compare?
In 2013, even Texas legislators admitted that the state was a low tax state sometimes. First of all, as of 2017, three states had “No” sales taxes: New Hampshire, Montana and Oregon. The Texas sales tax rate was 8.19% for 2017, which was #12 in the nation.
Over the years, the Texas tax rates have been rising, but other states have increased them much faster. The “effective total state and local tax rates on median US households” ranks Texas in the middle of the pack (#30) at 11.12% for 2017. The lowest tax states, using this measurement were Alaska, Delaware and Montana.
Diverse Financial Loans
Relatively low tax rates are beneficial to banks. NexBank CEO John Holt discussed “Reinventing Community Banking: Perspectives on Competing by Innovation,” at the aforementioned strategy conference.
Texas still has a very favorable tax rate compared to the largest states. The NexBank diverse financial product mix profits from this business-friendly atmosphere.