Payroll Taxes
Payroll taxes are levied on wages and salaries and they are imposed on the federal and state levels nationwide. These are Social Security and Medicare taxes and they are supposed to be paid by both employers and employees. On average, their combined rate amounts to 15.3%.
In the state of Texas employees pay federal Social Security tax at the rate of 4.2% as well as Medicare tax at the rate of 1.45%; both withheld from every paycheck. Employers, however, are subject to both federal and state payroll taxes and the former are calculated in accordance with the regulations of IRS, while the latter – in accordance with the instructions of the Texas Workforce Commission. As of it, employers pay both Medicare tax (the same 1.45% rate, fixed) as well as their share of Social Security tax (at the rate of 6.25%); they also pay state unemployment tax (SUTA) and federal unemployment tax (FUTA).
Estate taxes
Estate and gift taxes are imposed on the federal and state levels usually and they are taxes on the transfer of property rights either in the result of inheritance or in case of life time donation.
There is no inheritance tax in Texas. As a result of the of the federal estate tax credit being discontinued, estates of persons who died in 2005 or later are not subject to inheritance tax. However, estates are older than 2005 are taxed in accordance with federal laws and the laws of state.
Other taxes
The Texas Comptroller’s office serves the state by collecting more than 60 separate taxes. Among major taxes such as sales and property tax, Texas has other taxes that add a lot to its annual revenue.
Hotel Occupancy Tax represents a tax levied on the price of a room in a hotel or motel. It equals 6% and is imposed on local level by counties as well as cities.
Excise taxes in Texas are collected from the gasoline, cigarettes and alcohol sale as well as cell phone service plans. Among them are:
Gas tax
Texas also practices gas tax at the rate of 20c per gallon.
Sin Taxes
These taxes have eloquent name as they are apparently levied on alcohol and tobacco sale. Alcohol taxes differ in accordance with the types and cigarettes are taxed at $1.41 per pack.
There are more than 60 taxes in Texas altogether and for the full list visit the site of the Texas Comptroller’s office.
Payroll Taxes
Payroll taxes are levied on wages and salaries and they are imposed on the federal and state levels nationwide. These are Social Security and Medicare taxes and they are supposed to be paid by both employers and employees. On average, their combined rate amounts to 15.3%.
In the state of Texas employees pay federal Social Security tax at the rate of 4.2% as well as Medicare tax at the rate of 1.45%; both withheld from every paycheck. Employers, however, are subject to both federal and state payroll taxes and the former are calculated in accordance with the regulations of IRS, while the latter – in accordance with the instructions of the Texas Workforce Commission. As of it, employers pay both Medicare tax (the same 1.45% rate, fixed) as well as their share of Social Security tax (at the rate of 6.25%); they also pay state unemployment tax (SUTA) and federal unemployment tax (FUTA).
Estate taxes
Estate and gift taxes are imposed on the federal and state levels usually and they are taxes on the transfer of property rights either in the result of inheritance or in case of life time donation.
There is no inheritance tax in Texas. As a result of the of the federal estate tax credit being discontinued, estates of persons who died in 2005 or later are not subject to inheritance tax. However, estates are older than 2005 are taxed in accordance with federal laws and the laws of state.
Other taxes
The Texas Comptroller’s office serves the state by collecting more than 60 separate taxes. Among major taxes such as sales and property tax, Texas has other taxes that add a lot to its annual revenue.
Hotel Occupancy Tax represents a tax levied on the price of a room in a hotel or motel. It equals 6% and is imposed on local level by counties as well as cities.
Excise taxes in Texas are collected from the gasoline, cigarettes and alcohol sale as well as cell phone service plans. Among them are:
Gas tax
Texas also practices gas tax at the rate of 20c per gallon.
Sin Taxes
These taxes have eloquent name as they are apparently levied on alcohol and tobacco sale. Alcohol taxes differ in accordance with the types and cigarettes are taxed at $1.41 per pack.
There are more than 60 taxes in Texas altogether and for the full list visit the site of the Texas Comptroller’s office.