Startup Costs in Texas

Data current as of May 2026

Texas consistently ranks among the most business-friendly states in the country. No state income tax, relatively low regulations, and a large consumer market make it attractive for new businesses. The state does impose a franchise tax on businesses exceeding $2.47 million in revenue, but most startups fall well below that threshold.

Texas (TX) by the Numbers

LLC Filing Fee
$300
Annual Report
$0
State Income Tax
None
Sales Tax
6.25%
Min Wage
$7.25/hr
Cost of Living
0.92x
Labor Cost
0.95x
Rent Index
0.85x

What Texas' Numbers Mean for Founders

  • Texas has no state income tax, which lowers your take-home tax burden compared to most states.
  • Commercial rent is 15% below the national average, which gives you more square footage for your budget.
  • Minimum wage is the federal floor of $7.25/hour, keeping entry-level payroll low.
  • LLC filing runs $300 upfront - higher than most states - plus $0 annually to stay in good standing.
Capital: Austin
Major metros: Houston, Dallas, Austin, San Antonio
Top industries: Energy, Technology, Healthcare, Agriculture

Texas Cost Guides (10)