Taxes & Cost of Doing Business


Resized-Prop Tax Chart Low Tax Rate

Taxes & Cost of Doing Business (City, County, & State)


2019 State Business Tax Climate Index (Tax Foundation)
- The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems, and provides a road map for improvement.

Property Tax Rates


Ad Valorem Tax Rates
(Per $100 Assessed Value)
City of Red Oak 0.7054800 
Red Oak ISD 1.540000 
Ellis County 0.3705330 
Total Property Tax 2.616013

Property Tax Exemptions


Residence homestead exemptions are listed below.
Homestead – 10%
Over 65 - $20,000
Over 65 – Frozen
Disabled Person – 3,000

Sales Tax Rates


State Sales Tax 6.25%
City Sales Tax 1.00%
Industrial Development   (A) 0.50%  (1/2 Cent)
Economic Development  (B) 0.50%  (1/2 Cent)
Total Sales Tax 8.25%

Income Tax


The State of Texas does not impose a personal or corporate income tax.

Corporate Franchise Tax


A corporate franchise tax is levied in Texas in place of a corporate income tax. The tax is levied on businesses organized in the corporate form in Texas. Corporations are taxed at the rate of the greater of $2.50 per $1,000 of net taxable capital or 4.5% of net taxable earned surplus.

Hotel / Motel Occupancy Tax


The State of Texas imposes a hotel/motel occupancy tax of 6% with individual cities having the option to increase the tax rate up to 7%. The total Hotel / Motel Occupancy Tax Rate in the City of Red Oak is 13%.