Taxes & Cost of Doing Business

Low Taxes
Low Tax Rate

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

2016 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 roadmap for improvement.

Property Tax Rates

Ad Valorem Tax Rates
(Per $100 Assessed Value)
City of Red Oak 0.64900
Red Oak ISD 1.54000
Ellis County 0.38091
Total Property Tax 2.56991

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%
Economic Development (B) 0.50%
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%.

Cost of Doing Business in Red Oak (PDF)