Corporate Income Tax –
a) Total revenue minus cost of goods sold,
b) Total revenue minus employee compensation and benefits, or
c) 70% of total revenue. The taxable margin is then apportioned
percentage of the entity's business done in Texas.
Sales and Use Tax –
State Sales Tax
Municipal - City of El Paso
County- El Paso County
Municipal Transit-Sun City Area Transit Tax
Total El Paso Sales and Use Tax
6.25%
1.00%
0.50%
0.50%
8.25%
Franchise Tax –
Net Taxable of Capital
Net Taxable of Earned Surplus
0.25%
4.50%
by
the
The franchise tax is imposed on all corporations that do business in the state or are chartered or authorized to
do business in the state.
Payroll Tax: Social Security Tax Rate- Employers are required to withhold 6.2 % of employees’ wages for
social security taxes and to pay a matching amount (6.2%) until the employee reaches the wage base limit of
110,100.
Medicare Tax Rate- Employers will withhold 1.45% of an employee’s wages and pay a matching amount for
Medicare tax (1.45%). There is no wage base for the Medicare portion.
Federal Unemployment Tax (FUTA): FUTA rate- 6.0% for 2012. The wage base for FUTA is $7,000.
1
State Unemployment Tax Rates (SUTA) : A new employer in Texas is levied an unemployment tax, at a rate
of 2.7% or the applicable industry average tax rate, whichever is higher. The tax is levied against the first
$9,000 of each worker’s annual salary.
Federal Labor Law: Effective July 24, 2007, the federal minimum wage increased to $5.85 an hour.
Effective July 24, 2008, the federal minimum wage increased to $6.55 an hour. Effective July 24, 2009, the
federal minimum wage increased to $7.25 an hour.
Property Tax
These rates apply to land and improvements and are levied per $100 of assessed value.
Jurisdiction
Entity
Maintenance &
Interest & Sinking
Number Operations Rate ($) Rate ($) per $100
per $100
City of El Paso
Homestead Municipal
Utility District
El Paso I.S.D.
City of Socorro
Ysleta I.S.D.
County of El Paso
El Paso Community College District
University Medical Center
Socorro I.S.D.
Clint I.S.D.
Fabens I.S.D.
Town of Clint
Horizon Regional Municipal Utility
District
Emergency Services District 1
Total Rate ($) per
$100
1
2
0.442148
0.000000
0.216256
0.000000
0.658404
N/A
3
4
5
6
7
8
9
10
11
12
14
1.040000
0.423327
1.170000
0.357256
0.114086
0.165585
0.976140
1.040050
1.040000
0.442248
0.143700
0.195000
0.142478
0.160000
0.051614
0.000000
0.026778
0.298654
0.295000
0.221900
0.000000
0.325000
1.235000
0.565805
1.330000
0.408870
0.114086
0.192363
1.274794
1.335050
1.261900
0.442248
0.468700
15
0.067199
0.032801
0.100000
1 Unemployment Tax Rates (2011). Texas Comptroller’s Office.
Jurisdiction
Anthony I.S.D.
Town of Anthony
Canutillo I.S.D.
San Elizario I.S.D.
Tornillo I.S.D.
Westway Water District
Haciendas del Norte
Water District
Lower Valley Water District
Authority
Emergency Services District No. 2
Tornillo Water District
City of Horizon
Downtown Management District
Paseo Del Este MUD #10
Paseo Del Este MUD #1
Paseo Del Este MUD #3
Paseo Del Este MUD #11
Village of Vinton
Paseo Del Este MUD #2
EPCWCI #4
Paseo Del Este MUD #5
Paseo Del Este MUD #6
Paseo Del Este MUD #7
Paseo Del Este MUD #8
Entity
Number
Interest &
Sinking Rate ($)
per $100
0.130000
0.155243
0.252100
0.051800
0.213600
0.000000
0.191052
Total Rate ($) per
$100
16
17
18
19
20
21
22
Maintenance &
Operations Rate ($)
per $100
1.040000
0.262256
1.170000
1.108956
1.090100
0.000000
0.040000
25
0.120000
0.081574
0.201574
27
30
31
33
34
35
36
37
38
39
44
49
50
51
52
0.026203
0.090000
0.284797
0.120000
0.354400
0.454400
0.304400
0.454400
0.215913
0.134400
0.000000
0.454400
0.454400
0.454400
0.454400
0.073797
0.000000
0.037994
0.000000
0.395600
0.295600
0.445600
0.295600
0.059783
0.615600
0.000000
0.295600
0.295600
0.295600
0.295600
0.100000
0.090000
0.322791
0.120000
0.750000
0.750000
0.750000
0.750000
0.275696
0.750000
0.000000
0.750000
0.750000
0.750000
0.750000
1.170000
0.417499
1.422100
1.160756
1.303700
N/A
0.231052
Workers’ Compensation Insurance Rates: Texas employers, except for public entities, can choose whether or
not to provide workers' compensation insurance coverage for their employees. Workers' compensation is
regulated by the Texas Department of Insurance, Division of Workers' Compensation. Prior to 1992, the Texas
Department of Insurance promulgated rates for all insurance carriers to use. Legislation effective in 1992
required insurance carriers to begin developing and filing their own rates, which resulted in rates and rating
plans varying from one insurance carrier to another. Employers can shop around for the most affordable
coverage.
Texas employers are assigned one or more classifications based on the type of business. Each employee’s
payroll is then assigned to the appropriate classification. The total payroll for each classification is then
multiplied by the insurer’s filed rate for that classification (rate per $100 payroll) to determine premium. The
employer’s basic premium is the sum of the individual classification premiums.
There are other factors that may be utilized to increase or decrease the employer’s premium. An experience
rating modifier that reflects the employer’s past loss history may be applied to the premium. (The employer may
be able to negotiate the experience modifier downward if they have improved loss ratios or implemented
improved safety programs.) A schedule rating debit or credit may be applied to the premium depending on
individual characteristics of the employer’s business that may not be reflected in the rate. In addition, there are
several optional rating plans such as deductibles or retrospective rating that are available to employers that may
reduce premiums.
The table below illustrates sample workers’ compensation insurance base rates. Note that the rates exclude any
modification(s) that may be applied by insurance companies.
Workers’ Compensation Insurance Base Rates
Classification
2
TX Dept of Insurance
Code #
Base Rate
Plastics manufacturing / Molded products
4484
$5.78 / $100
Clerical
8810
$0.34 / $100
Engineer / Architect
Collectors, Messengers and Outside Sales People
Building NOC: Housekeepers and Maintenance
8601
8742
9015
$0.63 / $100
$0.54 / $100
$5.42 / $100
As noted above, participation in the workers' compensation system in Texas is voluntary for most employers.
Employers who choose to have workers' compensation insurance may:
 purchase a workers' compensation insurance policy from a private insurance company;
 self-insure, if the employer can meet the requirements to self-insure under the Texas Workers'
Compensation Act (the Act) and is certified through the Division;
 self-insure through the Texas Department of Insurance with a group of same or similar private
employers; or
 If a governmental entity, purchase a workers' compensation policy from a private insurance
company, or self-insure either individually or as a group.
With few exceptions, workers' compensation insurance limits the employer's liability for the work-related injury or
death sustained by the worker.
Non-Covered Employers: Non-covered employers are employers who DO NOT have workers' compensation
insurance coverage. Although a Texas employer may choose not to have coverage, non-covered employers
must comply with certain workers' compensation requirements.
Notice of No Coverage: Employers who do not have workers' compensation coverage must post written notice
at their workplace telling their employees that they do not have workers' compensation insurance. This notice
must be in English, Spanish and any other language that is appropriate. All employers who do not have workers'
compensation insurance must give written notice of non-coverage to new employees upon hire. To obtain the
language that must be in this notice, visit the Division's website: www.tdi.state.tx.us/wc/rules/110.pdf.
Working hours: Optional to Employer.
Employee benefits: Benefits are optional and are dependant upon what the employer wants to pay.
2 Rogers, Jimmy III - Workers’ compensation insurance base rates. Wells Fargo Insurance Solutions.