Zero income tax. New R&D credit expansion. But the franchise tax and sky-high property taxes demand planning.
Texas's 2026 R&D credit increase to 8.722% (up from 5%) is a major development. Combined with no income tax, it rewards growth-stage businesses.
Beyond income tax, Texas business owners need to account for these additional tax obligations and structures.
These state-level incentives can meaningfully reduce your tax liability when properly claimed.
R&D tax credit (8.722% base, 10.903% for university research, effective 2026)
Texas Enterprise Fund
Chapter 313 property tax limitations (successor program)
Film and media production incentives
Skills Development Fund
Opportunity Zones
No individual income tax
Based on Texas's tax profile, these are the strategies with the highest impact for business owners.
Proper S-Corp salary vs. distribution splits can save five figures annually on self-employment and state taxes.
Learn more →If you own commercial real estate or rental property, accelerated depreciation can generate massive year-one deductions.
Learn more →With no state income tax, your primary savings come from federal strategies: retirement contributions, Qualified Business Income (QBI) optimization, and timing.
Learn more →Texas offers its own R&D credit in addition to the federal credit. Many business owners leave this money unclaimed.
Learn more →We work with Texas business owners across these industries, each with unique tax planning opportunities.
Texas does not impose a state individual income tax, making it one of the most tax-friendly states for business owners. However, corporate-level taxes and federal obligations still require careful planning.
Texas does not currently offer a pass-through entity tax election. Since there is no state income tax, a PTET is not necessary.
Even without state income tax, Texas business owners benefit from federal strategies: S-Corp optimization, retirement plan design, cost segregation, and entity structuring. The savings are in the federal code.
Texas offers several valuable credits and incentives: R&D tax credit (8.722% base, 10.903% for university research, effective 2026), Texas Enterprise Fund, Chapter 313 property tax limitations (successor program), and more. The state R&D credit is particularly valuable for businesses investing in innovation. Many of these go unclaimed because business owners don't know they qualify.
Our Tax Intelligence Framework engagement starts with a free assessment to identify your specific opportunities. Implementation pricing depends on complexity, but our clients typically see 5-10x return on their investment. A Texas business owner doing $1M+ in revenue commonly saves $50K-$200K+ in the first year alone.
Get a free assessment and we'll identify the state-specific opportunities hiding in your numbers.
Tell us about your business and we'll identify every savings opportunity available to you.