Local Tax Rates

Property Tax

Midland County has six taxing entities. City property tax rates are only imposed upon firms within the city limits. Following are the 2020-2021 tax rates per $100 of assessed value.

Property Tax Tax Rate
City of Midland 0.358928
Midland County 0.128844
Midland ISD 1.020660
Midland College 0.092208
Midland Hospital 0.099634
TOTAL 1.706214

Income Tax

Texas has no personal income tax.

Corporate Franchise Tax

Texas imposes a franchise tax, frequently referred to as a “margin tax” on taxable entities organized or chartered under Texas law, and foreign (non-Texas) entities that do business in Texas. In general, an entity is subject to the tax if state law limits the owner’s liability. The Texas Franchise Tax rate is 1% (.5% for wholesale and retail sellers only), begins with an entity’s total revenue, and allows applicable deductions for the largest of cost of goods sold, compensation, or 30% of the total revenue. The computed margin is apportioned to Texas, and the tax rate is applied. Alternative, less complicated formulas may be elected by taxpayers with total revenue of $10 million or less.

A taxable entity, including a combined group, qualifies to file a No Tax Due Report if it meets one of the following criteria: 1) has zero Texas receipts, 2) qualifies as a passive activity for Texas Franchise Tax purposes, 3) is a real estate investment trust (REIT) that meets specific qualifications, or 4) has total annualized revenue below the no-tax-due threshold ($1,000,000 for reports due after January 1, 2010 and before January 1, 2012).

Sales & Use Tax

There are three Sales & Use Tax rates. A location outside of the city exempts the firm from the city rate. Following are the current rates.

Sales & Use Tax Tax Rate
State 6.25%
City 1.25%
County .50%
Hospital .25%
TOTAL 8.25%