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:

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

Property Tax Rates 
Ad Valorem Tax Rates 
(Per $100 Assessed Value) 
City of Red Oak      $0.697464 
Red Oak ISD           $1.325600 
Ellis County             $0.339338 
Total Property Tax $2.362402 

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%.