Texas Franchise Tax: 0.375% (retail or wholesale) or 0.75% (other than retail or wholesale) for entities with revenue over $2,470,000
Houston requires short-term rental hosts to register with the city for a $275 fee per property, effective January 1, 2026. A hotel occupancy tax also applies.
Houston's lack of state income tax and corporate income tax (replaced by a franchise tax) creates a favorable environment for business owners, making strategic use of local incentives and business structure crucial for maximizing tax efficiency.
These are the dominant professions and industries in Houston. Click your profession to see your personalized write-off list.
These strategies are especially powerful or unique for Houston residents and business owners. Click any strategy to learn more.
Running an LLC or business in Houston? Here's what you need to know about local taxes, entity structure, and the write-offs that matter most in this city.
Houston business owners face both Texas state taxes and Houston-specific local taxes. Understanding both layers is essential for effective tax planning.
Common questions about Houston business taxes, LLC structure, and local write-offs — answered by Uncle Kam's tax advisors.
Houston 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% (retail or wholesale) or 0.75% (other than retail or wholesale) for entities with revenue over $2,470,000
Book a Free Strategy Call →The top write-offs for Houston 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 Houston-specific deductions like local business taxes paid. Uncle Kam's advisors know the Houston tax landscape — book a free strategy call.
Book a Free Strategy Call →Forming an LLC in Houston provides liability protection and pass-through taxation. For most Houston 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 Houston: Houston requires short-term rental hosts to register with the city for a $275 fee per property, effective January 1, 2026. A hotel occupancy tax also applies. 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 — Houston 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 Houston. Uncle Kam can connect you with advisors who specialize in OZ investments.
Book a Free Strategy Call →Freelancers and self-employed professionals in Houston 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). Houston'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 Houston, Texas who specialize in maximizing write-offs for your business type.
Find Houston 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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