Texas Franchise Tax: 0.375% for retail/wholesale, 0.75% for other businesses (applies to taxable entities formed or doing business in Texas with gross receipts over $1,230,000)
Short-term rentals (STRs) are regulated and require an annual license. New regulations include a 1,000-foot separation rule for multiple STRs and a maximum occupancy of six unrelated adults or ten related individuals.
Austin's lack of a state income tax and city income/business tax makes it highly attractive for business owners and investors, emphasizing the importance of optimizing property tax and state franchise tax liabilities.
These are the dominant professions and industries in Austin. Click your profession to see your personalized write-off list.
These strategies are especially powerful or unique for Austin residents and business owners. Click any strategy to learn more.
Running an LLC or business in Austin? Here's what you need to know about local taxes, entity structure, and the write-offs that matter most in this city.
Austin business owners face both Texas state taxes and Austin-specific local taxes. Understanding both layers is essential for effective tax planning.
Common questions about Austin business taxes, LLC structure, and local write-offs — answered by Uncle Kam's tax advisors.
Austin does not have a local individual income tax. You'll pay Texas state income taxes but no additional city-level income tax. Focus your planning on maximizing federal and Texas state deductions.
Book a Free Strategy Call →Texas Franchise Tax: 0.375% for retail/wholesale, 0.75% for other businesses (applies to taxable entities formed or doing business in Texas with gross receipts over $1,230,000)
Book a Free Strategy Call →The top write-offs for Austin business owners include: S-Corp election to reduce self-employment taxes, home office deduction, vehicle and mileage, Section 179 equipment expensing, business meals and entertainment, retirement contributions (Solo 401k/SEP-IRA), and Austin-specific deductions like local business taxes paid. Uncle Kam's advisors know the Austin tax landscape — book a free strategy call.
Book a Free Strategy Call →Forming an LLC in Austin provides liability protection and pass-through taxation. For most Austin business owners earning over $60,000 net profit, adding an S-Corp election to your LLC can save thousands in self-employment taxes annually. Texas has specific LLC requirements and fees — get a personalized recommendation from Uncle Kam's tax advisors.
Book a Free Strategy Call →Short-term rental rules in Austin: Short-term rentals (STRs) are regulated and require an annual license. New regulations include a 1,000-foot separation rule for multiple STRs and a maximum occupancy of six unrelated adults or ten related individuals. From a tax perspective, STR owners can deduct mortgage interest, property taxes, insurance, repairs, depreciation, and management fees. The short-term rental loophole may allow you to offset W-2 income with rental losses if you qualify.
Book a Free Strategy Call →Yes — Austin has designated Opportunity Zones where investors can defer and reduce capital gains taxes by investing in qualified opportunity funds (QOFs). This is one of the most powerful tax deferral strategies available for real estate and business investors in Austin. Uncle Kam can connect you with advisors who specialize in OZ investments.
Book a Free Strategy Call →Freelancers and self-employed professionals in Austin can reduce taxes by: electing S-Corp status (saves $5k–$20k/year for most), maximizing the home office deduction, deducting all business-related expenses, contributing to a Solo 401(k), and using the QBI deduction (up to 20% of qualified business income). Austin's combined state and local tax burden makes these strategies even more valuable. Get a free tax review from Uncle Kam.
Book a Free Strategy Call →This city guide is commonly used by the following taxpayer profiles. Click to see all strategies for your situation.
Uncle Kam connects you with vetted CPAs and tax advisors in Austin, Texas who specialize in maximizing write-offs for your business type.
Find Austin Tax Professionals →Uncle Kam clients save an average of $5,000–$40,000/year. The strategies that make that possible are unlocked on a free strategy call.
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