Bookkeeping, payroll and tax help for Austin businesses

Austin businesses pay no state income tax, but they collect 8.25% sales tax, render business property to the Travis Central Appraisal District by April 15 and file a Texas franchise report every May. Startups with Delaware corporations also register in Texas. We keep the books, run payroll and file the federal and Texas returns.

Updated November 2026

What's different about running a business in Austin?

Austin has more software startups and solo consultants per block than almost anywhere in Texas, alongside creative agencies, contractors keeping up with all the building, and a restaurant scene that never stops opening new places. Many tech founders here formed a Delaware C-Corp to raise money, then run the company from Austin. That company has to register with the Texas Secretary of State as a foreign entity, and it files Texas franchise tax reports like any local business.

Software and online services raise sales tax questions here more often than elsewhere. Texas treats data processing services as taxable, with 20% of the charge exempt, so a SaaS or data business selling to Texas customers usually collects tax. Selling into other states adds economic nexus rules too.

Most of Austin is in Travis County and the Travis Central Appraisal District, but northern and southern parts of the city fall in Williamson and Hays counties. Laptops, servers and office furniture are business personal property, and the rendition is due April 15.

What does a typical Austin client need from us?

Startups usually need clean monthly books for their investors, payroll that handles equity-heavy founders, and an eye on the R&D credit and state filings. Solo consultants need quarterly estimates and a call on whether an S-Corp election pays yet. Contractors and restaurants need payroll and sales tax handled every month. We cover all of it with one accountant who knows your numbers.

Local tax facts for Austin
ItemDetail
Sales tax rate8.25%: 6.25% state, 1% city and 1% for Capital Metro, the transit authority
CountyTravis County, with parts of the city in Williamson and Hays counties
Appraisal districtTravis Central Appraisal District for most of the city. Business personal property renditions are due April 15
State income taxNone on wages or business profit
Franchise taxReport due May 15. No tax due at or under $2,650,000 of revenue, but the information report is still required
PayrollFederal withholding plus Texas unemployment tax (TWC) on the first $9,000 of wages

Nearby areas we also serve

PflugervilleRound RockCedar ParkGeorgetownLeanderKyleBee Cave

Running a business in Austin?

One accountant for your books, payroll, sales tax and both returns, on one monthly fee.

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Who we help

Which Austin businesses do we work with?

Owners who want one person on their numbers all year.

Software startups

Investor-ready books, Delaware C-Corp filings and Texas registration.

Consultants and freelancers

Quarterly estimates and the S-Corp question once profit grows.

Creative agencies

Project margins, contractor 1099s and owner payroll.

Builders and trades

Job costing, sales tax on repair work and crew payroll.

Restaurants and bars

Daily sales tax, mixed beverage reporting support and tip payroll.

SaaS and online sellers

Texas data processing tax and nexus in other states.

Questions

Still wondering?

Ask anything else on a free 30-minute call.

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What is the sales tax rate in Austin?

It's 8.25%: 6.25% for the state, 1% for the city and 1% for Capital Metro. You file and pay it to the Texas Comptroller.

Is software or SaaS taxable in Texas?

Usually, yes. Texas treats it as a data processing service, which is taxable on 80% of the charge. Check how your product is billed before you set up your rates.

My startup is a Delaware C-Corp. Does it owe Texas franchise tax?

If it does business in Texas, it registers as a foreign corporation and files Texas franchise tax reports. Under the $2,650,000 threshold it owes no tax but still files the information report.

Can you work with my Austin startup's investors and board?

Yes. We produce monthly financials, close the books on a schedule, and answer your investors' accounting questions.

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