Texas tax system is often called regressive due to the absense of state income tax and more prominent role of sales tax due to that. It might seem capable of negatively affecting low-income tax payers more than high-income ones; however, with all the people moving to Texas the system definitely has its advantages.
Despite the fact of state income tax absence in Texas, it is required by state and federal laws that Texans must file their tax returns on or before April 15th. There are other taxes that the residents of the state have to pay and here is more detailed information on the account of forms, dates and ways of tax return filing.
Tax returns contain both the data about the money owed and the money a taxpayer might be entitled to get back. Tax refunds are greatly relied on by the U.S. citizens (77%), who usually get the average of $2,100 annually. This money is essential for many households and, thus, it is important to get the tax refund amount right.
Tax system in the United States is a complex body and basically has three main levels - federal, state and local. There is a great number of various governmental entities that impose taxes and use them as means of functioning; and since the jurisdictions are numerous, very frequently taxes are imposed on the same income as well as property and etc.
Income tax is supposed to be repaid to federal as well as state budget, though not all the states have such a practice. Property taxes are not imposed on federal level; they are collected by local tax entities and serve local and state purposes in accordance. Excise tax is solely federal tax as well as custom tariffs and duties and various fees. Sales taxes are practiced by the majority of states and local jurisdictions. Every state has its own tax system with regards to its principles and policy and the legislation may greatly differ in this respect.
Texas is one of the successful states in terms of economy growth and it is also well-known as a state of "low taxes, low services". It is ranked 7th in terms of tax burden across the state and though its tax system is often referred to as a regressive one, the figures show that it seems to be working and well.
The Texas Comptroller's office is in charge of state tax control and collection in the state and there are more than 1,400 counties, cities and local governments that have rights to impose taxes. Consequently, as of the present moment, Texans have more than 60 various taxes imposed both on state and local level.
Texas does not have state income tax and it is one of its distinguishing features. Alaska, Florida, Nevada, South Dakota, Washington and Wyoming neither tax income of individuals on the state level.
The major part of Texas revenue comes from property and sales taxes instead. Although, it is very often claimed that Texas has the highest tax rate on property, is doesn't seem to interfere with many people choosing is as a place to settle.