Taxes & Cost of Doing Business

Economic growth is one of the most important indicators of Red Oak's healthy economy. One of the biggest impacts of long-term growth is that it has a positive impact on income and the level of employment, which increases the standard of living.

Below is a current list of the taxes collected by the City of Red Oak:

Resized-Prop Tax ChartLow 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%.