Tax Lawyers in Dallas

Dallas residents benefits from no state income tax, making it attractive to individuals seeking lower personal tax burdens. Residents pay no tax on wages or investment income though federal income taxes still apply.

The combined sales tax rate in Dallas is 8.25%, consisting of 6.25% state tax, 1% city tax and 1% for Dallas Area Rapid Transit (DART.) Groceries and prescriptions are generally tax exempt.

As of 2025, the City of Dallas has a property tax rate of $0.7047 per $100 of assessed value. The average effective property tax rate in Dallas County is about 1.74%, though rates vary by municipality. Additionally, businesses are subject to the Texas franchise tax, a gross receipts tax. Companies earning less than $1.23 million annually are exempt.

The Texas Comptroller of Public Accounts oversees state tax administration, including franchise and sales taxes. Locally, the Dallas County Tax Office, led by the Tax Assessor/Collector, handles property tax billing and collection, along with vehicle registrations.

Texas also levies taxes on gasoline, alcohol, and tobacco, but does not impose estate or inheritance taxes.

In Dallas, Texas, there is no state income tax, making it an attractive location for both residents and businesses. To offset the absence of income tax revenue, the state of Texas relies heavily on sales and property taxes. The combined sales tax rate in Dallas is 8.25%; 6.25% state, 1% city, and 1% DART (Dallas Area Rapid Transit) levies. The average effective property tax rate in Dallas County is approximately 1.74%, though it can vary by municipality.

Businesses are subject to the Texas franchise tax, a gross receipts tax. Companies with annual revenue under $2.47 million are exempt. Those above this threshold pay 0.375% for retail/wholesale and 0.75% for other sectors.

Retirement income, including Social Security, pensions, and withdrawals from retirement accounts, is not taxed by the state. However, federal income taxes may still apply to some types of retirement income.

Also, Texas imposes a gasoline tax of $0.20 per gallon, a tobacco tax of $1.41 per pack of 20 cigarettes, and 8.25% sales tax on other tobacco products.

In Dallas, Texas, various forms of income are exempt from state and local taxation due to the absence of a state and local income tax:

• 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.

However, these incomes may still be subject to Federal taxation.

Yes, Dallas offers several tax exemptions across different categories. They include:

• Property Tax Exemptions: Homestead exemptions reduce taxable home values by $40,000, with additional exemptions for seniors, disabled individuals, veterans, and certain surviving spouses.
• Sales Tax Exemptions: Most groceries, prescription medications, and select medical supplies are exempt from sales tax.
• Tax Exemptions for Qualified Organizations: Nonprofits, religious, and educational organizations may qualify for exemptions from franchise, sales, hotel occupancy, and property taxes. Farmers and ranchers are exempt on specific purchases like feed, seed, and equipment.
• Business Tax Exemptions: Businesses with annual revenue under $2.47 million (as of 2024) are exempt from Texas’s franchise (gross receipts) tax.
• Agricultural & Manufacturing Exemptions: Equipment used in production, processing, or farming is tax-exempt. The Freeport exemption also applies to goods exported out of Texas within 175 days, reducing property taxes on qualifying inventory.

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

Dallas tax lawyer fees vary based on the complexity of your case – whether it’s an IRS audit, business tax planning, or state tax disputes. Attorneys may charge flat fees or hourly rates depending on the service.

At Taxlawyer.com, we connect Dallas residents and businesses with experienced Dallas tax lawyers who deliver expert guidance at fair, competitive rates.

Whether it’s an IRS dispute, franchise tax concern, or planning for estate taxes, the right legal help makes all the difference. Follow these steps to hire a qualified tax attorney:

• Assess your legal needs: IRS litigation, offshore disclosures, estate tax planning, or corporate taxation.
• Research lawyer qualifications: Verify specialization in federal and Texas state 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 Dallas clients with top-rated Dallas tax lawyers for tailored, expert representation.