Taxes

The State of Texas and the Katy Area offer a pro-business tax structure, and reasonable fees for development and businesses. Some key features of the tax structure include:

• No State Income Tax on Persons or Businesses
• No Unitary Tax
• No Local Income or Occupational Tax
• No County Sales Tax

Texas Franchise Tax: 

• 1.0% (.01) for most entities
• 0.5% (.005) for qualifying wholesalers and retailers*
• 0.575% for those entities with $10 million or less in Total Revenue (annualized per 12 month period on which the report is based) electing the E-Z Computation

Ad Valorem (Property) Tax

Location	Tax Amount	Year
West Ten Business Park	$2.38	2007
Park 10 - Harris County	$2.81	2007
LaCenterra	$2.87	2007
Katy Mills	$3.61	2007
*Per $100 of assessed value

 

Katy ISD Tax Rates
Year	Rates
2008	$1.5266
2009	$1.5266
2010	$1.5266

• Sales and Use Tax
  • City of Katy: 1%
  • County: 0%
  • Special Purpose (Metro): 1%
  • State: 6.25%
  • Maximum Total: 8.25%

 

• Lodging Tax
  • City of Katy: 4%
  • City of Houston: 7%

 

• Fuels Tax
  • State of Texas: $0.20 per gallon

 

• Unemployment Insurance
  • 2.7% starting rate
  • Based on the first $9,000 in earnings

 

• Workers Compensation Insurance
  • Options include self-insurance, the state operated Texas Workers Compensation Insurance Fund or a licensed private insurance company