Tax Environment / Arlington TX Economic Development

In Arlington, Texas, businesses enjoy significant tax benefits designed to foster growth and innovation. In addition to zero state income taxes in Texas, our state offers a sales tax exemption for manufacturing machinery and materials related to research and development, including software and equipment. Furthermore, manufacturers, sellers, or installers of solar energy devices benefit from a franchise tax exemption. This tax environment supports businesses in Arlington, enabling them to focus more on their business opportunities rather than on additional tax steps.

A pro-business climate and business-friendly tax policies are how Arlington supports and encourages companies to relocate, start new enterprises or level up their existing business. These local and state tax advantages also aid businesses in attracting and retaining the valuable talent needed for a successful workforce.

5th

lowest tax burden per capita in the U.S.

Texas Tax Advantages

Texas offers valuable tax advantages for businesses. A sales tax exemption for manufacturing machinery and R&D-related materials, software and equipment is available, along with a franchise tax exemption for manufacturers, sellers or installers of solar energy devices.

Incentives & Financing

Local & State Taxes

Texas is one of only six states that does not charge corporate income taxes.

Texas		Arlington
Corporate Income Tax Rate	0%	Sales Tax	8.25% (6.25% State + 2 % City)
Personal Income Tax Rate	0%	Property Tax	$0.5598 per $100
State Property Tax	0%
Franchise Tax	0.331% - 0.75%

Discover Arlington's competitive advantage in commercial property taxation. Mirroring those of neighboring cities in the DFW Metroplex and Tarrant County, our rates are designed to support your business's financial success. Guided by Texas law, our local officials ensure fairness and transparency in property valuation and tax rates, enabling you to invest confidently in Arlington's vibrant business landscape. Your tax contributions fuel transformative projects and essential services, enhancing the city's appeal as a prime destination for commercial ventures. Experience the difference Arlington's favorable tax environment can make for your business's growth and prosperity.

Like most municipalities in Texas, Arlington has a total sales tax rate of 8.25% on retail sales, leases and rentals of most goods and taxable services. The State of Texas levies 6.25% of this tax, while the remaining 2% is collected by the City of Arlington.