Texas posts a combined corporate tax rate of 21% percent, which is tied for the lowest tax rate of the 50 states. The lower tax rate can yield additional corporate profits of 5-7% compared to some of Texas’ competitors.
Source: Tax Foundation
Access to affordable housing and quality schools is a major influencer for companies and their employees. Compensation paid to employees is many times directly correlated with cost of living required in the respective area. Home values are one of the leading indicators when determining a metropolitan area cost of living.
Travel and accessibility is a large consideration for executives and salespeople. Texas boasts a centralized location to both the East and West coasts as well as a large international airport (DFW). Below is the total passenger traffic for the largest metropolitan areas in 2019.
Cost of doing business is another major consideration for most companies. Real estate is a large component of any given companies overhead. Below is the average cost per square foot for office space in the respective metropolitan areas.
Source: Cushman & Wakefield
Texas consistently ranks amongst the top of all categories that companies evaluate when deciding where to locate their business. These are a few of the myriad of reasons that support Texas’ pro-business climate which will further accelerate the corporate migration to the Lone Star State!