El Paso Tax Rate information

 

Corporate Income Tax

  1. Total revenue minus cost of goods sold,
  2. Total revenue minus employee compensation and benefits, or
  3. 70% of total revenue. The taxable margin is then apportioned by the percentage of the entity's business done in Texas...

 

Sales and Use Tax

State Sales Tax  6.25%
Municipal - City of El Paso  1.00%
County- El Paso County  0.50%
Municipal Transit-Sun City Area Transit Tax  0.50%
Total El Paso Sales and Use Tax  8.25%

 

Franchise Tax

Net Taxable of Capital  0.25%
Net Taxable of Earned Surplus  4.50%

 

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.

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.

2017 Taxing Entities and Rates