Texas Has No State Income Tax

One of the fantastic things about the Lone Star State is that we know how to help you maximize your money. With a tax structure that is not only business friendly but also works for your employees too, we help you establish your company and keep your employees happy all at the same time.

Sales Tax Rate

  • Waco is 8.25%

  • In surrounding municipalities the rate is 7.74% to 8.25%.

Property Tax Rate

  • McLennan County: 0.425000%

  • City of Waco: 0.767282%

  • Waco ISD: 1.244640%

  • McLennan Community College: 0.149782

Tax rates per $100 assessed at 100%


Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing; processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities.

Texas businesses are exempt for paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.

Texas companies are exempt from paying state and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a "predominant use study" that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.

Contact for
Kris Collins
Senior Vice President Economic Development
Message Me
Why should you locate in Waco?