Tax Lawyers in Austin

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Tax Law in Texas

Texas has no state income tax but levies a franchise tax on businesses earning more than $2.47 million in revenue. The state sales and use tax is 6.25%, with local additions bringing the average to 8.20%. Property taxes are among the highest in the country. The Texas Comptroller of Public Accounts oversees tax collection​.

Protect your financial interests.

TaxLawyer.com connects Texas taxpayers with experienced tax attorneys to handle disputes and compliance.

Find the Best Tax Lawyers in Austin

Whether you’re dealing with an IRS audit, unfiled taxes, or a Texas Comptroller sales tax dispute, finding the right tax attorney in Austin, TX can make all the difference.

At TaxLawyer.com, we simplify your search. Our platform connects you with the best Austin tax lawyers who are experienced in handling federal, state, and local tax matters. From tech startups downtown to creatives in East Austin, we help business owners, freelancers, and individuals find the legal support they need to protect their finances.

Skip the stress of endless searches, get matched with the right Austin tax attorney today at TaxLawyer.com.

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Tax Lawyer Services in Austin

Tax Planning

Austin’s tax environment calls for proactive and intelligent planning.

Our experienced Austin tax lawyers help individuals and businesses minimize tax liability, maximize deductions, and remain compliant with both federal and Texas tax regulations, even in the absence of a state income tax.

Payroll Taxes

Handling payroll taxes correctly is critical for Austin employers.

Our seasoned Austin tax attorneys offer comprehensive payroll tax services, including compliance strategies, audit defense, and resolution of payroll tax disputes with the IRS and Texas Workforce Commission.

IRS Audit

IRS audits can be stressful and financially disruptive for Austin residents.

Our skilled team of Austin tax litigation lawyers represent clients throughout the audit process, challenge unjust assessments, and negotiate favorable settlements to safeguard your interests.

IRS Tax Evasion

Tax evasion allegations carry heavy legal and financial risks.

Our knowledgeable team of Austin tax lawyer tx build robust legal defenses, pursue penalty mitigation, and work to resolve your IRS case as efficiently and discreetly as possible.

Sales and Use Tax

Texas may not have a state income tax, but its sales and use tax laws are complex.

Our top team of tax law Austin experts guide businesses through compliance, contest assessments, and maximize available sales tax exemptions to reduce liabilities.

Back Taxes

Behind on taxes?

Our highly skilled team of tax attorney Austin Texas negotiate with the IRS and Texas Comptroller, structure manageable payment plans, and help remove penalties and interest to prevent aggressive enforcement actions.

IRS Voluntary Disclosure Practice

Need to disclose unreported offshore or domestic income?

Our experienced Austin tax lawyers enhance your success under the IRS Voluntary Disclosure Program by minimizing penalties and ensuring full legal compliance.

IRS Wage Garnishment

IRS wage garnishments can seriously disrupt your financial stability.

Our tax attorney Austin tx act fast to challenge garnishments, negotiate with the IRS, and protect your income from further collection actions.

IRS Crypto Tax

Crypto taxation is evolving rapidly, and Texas is not exempt.

Our seasoned crypto tax attorneys in Austin help you comply with IRS crypto tax rules, reduce your tax burden, and avoid costly audits or enforcement actions.

Offshore Income & Tax

Earning income abroad?

Our top tax lawyers Austin ensure compliance with IRS rules, protect foreign assets, and reduce penalties through strategic offshore tax planning.

IRS Tax Lien

An IRS lien can jeopardize your assets and creditworthiness.

Our trusted Austin Texas tax attorneys resolve outstanding tax debts, negotiate lien releases, and protect your long-term financial health.

Tax Levy

Dealing with an IRS tax levy in Austin?

Our aggressive tax lawyer Austin intervene quickly to stop levies, prevent asset seizures, and negotiate tax relief solutions on your behalf.

Unfiled Tax Returns

Unfiled returns can trigger audits, penalties, and criminal charges.

Our experienced Austin tax lawyers prepare and file overdue returns, communicate with the IRS, and guide you back to full compliance – minimizing legal risks in the process.

Why Work With Our Tax Lawyers in Austin

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Tax Law Specialists

Austin may not have a state income tax, but federal and business taxes still require smart planning. Our skilled IRS tax attorneys Austin Texas handle IRS negotiations, audits, crypto tax issues, and franchise tax compliance with precision.

Assistance Every Step of the Way

Tax stress in Austin? You’re not alone. Our dedicated Austin tax lawyers stand by you through audits, garnishments, and complex disputes – so you can move forward with confidence.

Educational Resources

Understanding taxes in Texas is easier with the right guidance. Our Austin-specific blog resources break down federal rules, local levies, and strategic deductions to help you stay fully informed and compliant.

United States Tax Law Blogs

Frequently Asked Questions

In Austin, Texas, the tax system stands out due to the state’s lack of a state income tax, making it an appealing choice for individuals looking to avoid that financial burden.

However, Austin has a combined sales tax rate of 8.25%, which includes the state’s 6.25% rate and 2.0% in local sales taxes. Additionally, Texas imposes a franchise tax – a type of gross receipts tax – on businesses operating in the state. This tax generally applies to entities exceeding a revenue threshold, with exemptions available for smaller businesses.

The Texas Comptroller of Public Accounts oversees the administration of state-level taxes, while county and city-level taxes in Austin are managed by the Travis County Tax Office and the City of Austin’s finance departments, respectively.

The effective property tax rate in Austin ranges between 1.8% and 2.3%, depending on the property’s location. This is due to overlapping taxing jurisdictions. To help reduce the burden, various property tax exemptions are available, such as the homestead exemption, which lowers the taxable value of a primary residence.

In addition to sales and property taxes, Texas also imposes excise taxes on gasoline, alcohol, and tobacco, but notably, there are no state estate or inheritance taxes.

In Austin, Texas, there is no state income tax, making it a tax-friendly state for residents and businesses. Instead, the state relies heavily on sales taxes, which is pegged at 8.25% (state’s 6.25% rate and 2.0% in local sales taxes.) Property taxes in Austin are administered by the Travis County Tax Office, with the effective property tax rate ranging from 1.8% to 2.3% of a property’s assessed value.

Additionally, businesses with revenues exceeding $2,470,000 (as of 2024) are subject to the franchise tax, typically 0.75% of their margin. Retirement income, including Social Security, pensions, and withdrawals from retirement accounts, is not taxed at the state nor local level, making Austin especially attractive for retirees seeking to maximize their income.

Neither the State of Texas nor the City of Austin imposes an income tax, meaning several types of income are exempt at both the state and local levels:

  • Wages and Salaries – No tax on earned income from employment or self-employment.
  • Retirement Income – Social Security benefits, pensions, 401(k) withdrawals, and IRA distributions are not taxed.
  • Investment Income – Capital gains, dividends, and interest earnings are free from state taxation.
  • Business Income – Sole proprietors and partnerships do not pay state income tax, though some businesses may owe franchise tax based on revenue.

While Texas exempts these incomes, federal taxes still apply.

The State of Texas and the City of Austin offers several tax exemptions. They are:

  • Property Tax Exemptions: Homestead exemptions reduce taxable home values, with additional exemptions for seniors, disabled individuals, and veterans.
  • Sales Tax Exemptions: Groceries, prescription medications, and certain medical supplies are exempt.
  • Tax Exemptions for Qualified Organizations. Certain organizations in Texas may qualify for exemptions from franchise, sales, hotel, and property taxes. Eligibility varies by category, and nonprofit groups must apply. Farmers receive exemptions on specific purchases.
  • Business Tax Exemptions: Small businesses with revenue below $2,470,000 (as of 2024) are exempt from franchise tax.
  • Agricultural & Manufacturing Exemptions: Equipment and supplies used for farming and manufacturing are not taxed.

These exemptions help reduce overall tax burdens for Austin residents and businesses.

Austin tax lawyer costs depend on case complexity, whether it’s an IRS audit, business tax planning, or state tax issues. Rates may vary between flat fees and hourly billing.

At Taxlawyer.com, we connect Austin residents with skilled Austin tax attorneys who offer expert legal services at competitive rates.

Navigating Texas tax laws can be complex, from IRS audits to multi-state business taxation. Follow these steps to hire a qualified Austin tax attorney:

  • Assess your legal needs: IRS litigation, offshore disclosures, estate tax planning, or corporate taxation.
  • Research lawyer qualifications: Verify specialization in federal, state and local tax law.
  • Schedule a case review: Discuss potential legal strategies and compliance requirements.
  • Understand the pricing model: Flat fees, hourly rates, or contingency-based billing.

At TaxLawyer.com, we connect Austin taxpayers with leading Austin tax lawyers for personalized legal solutions.