Texas State Income Taxes
Texas has the second highest population in the 50United States. The name comes from the Caddo word meaning friends or allies. Texas is located in the south central united states sharing an international border with the Mexican states of Chihuahua, coagula, Nuevo Leon and Tamaulipas to the south and borders the us states of new Mexico to the west, Oklahoma to the north, Arkansas to the north east and Louisiana to the east. It has an area of 268,820 sq miles and a population of 25.7 which is growing rapidly. Houston is the largest city in Texas, El paso and Austin are the other cities of Texas.
Texas have 60 different types of taxes includes the local sales taxes. The tax system is very regressive and it creates a burden for the poor people because it relies heavily on sales taxes. In reality the low income group of people spends too much of their income in buying goods than high income group people therefore the taxes which are being paid as sales tax includes a huge portion as their income.
Texas tax system does not include personal state income taxes from the residents. Texas have as 6.25 % sales state tax, the local sales and taxes imposed by cites, countries and transit adds up to 2 %of the total sales tax.Texas does not have to pay state property tax and the tax rate can vary from location to location. A residential homestead exemption is allowed for those who purchase property on 1st Jan .a greater tax exemption is given to those who are 65 years old or above. Personal property including automobiles, airplanes, and boat does not give any income in exempt from taxation.
Texas does not levied tax on inheritance of property due to the discontinuation of the federal estate tax credit.Texas estate tax is not charged on estates of person who died in 2005 or later. Texas taxes are levied on all active businesses receiving state law liability protection apart from the existing taxes the retail fire workers collects a 2 % fireworks tax. This tax collection is used to supply money to the program assisting rural fire developments. So all this underlines the core principle thatTexas has a huge chunk in the total contribution with regards to the total tax system in theUnited States and very stringent systems and procedures are in place which substantiates the fact.
When we embark on filing of income tax two things should be kept in mind and that is as individuals all should be clear from our end. All the necessary information should be collected and accumulated from our end mainly the income as well as the dividend statements which we need to collect from the employees also. From a personal point of view by paying taxes we contribute to the revenue of the country and as responsible citizens it is our duty and responsibility to pay this and then only we prove the true worth to the country as a whole.