Bookkeeping, payroll and tax help for Houston businesses

Houston businesses pay no state income tax, but they collect 8.25% sales tax, render business property to the Harris Central Appraisal District by April 15 and file a Texas franchise tax report every May. We keep your books, run payroll and file your federal and Texas returns, including when a storm moves the IRS deadlines.

Updated November 2026

What's different about running a business in Houston?

Houston's economy runs on energy, healthcare, the port and construction, and its small businesses follow. We work with oilfield and industrial service contractors, medical practices near the Texas Medical Center, import and logistics businesses, builders and the restaurants that feed all of them. Revenue here can swing with oil prices and project schedules, which makes clean monthly books and a cash forecast more useful than in a steadier market.

Sales tax is 8.25% in the city, with 1% going to METRO. Industrial and oilfield service businesses need to watch which of their services are taxable in Texas, because repair and maintenance of nonresidential property and some data services are.

Most of the city is in Harris County and the Harris Central Appraisal District, with some addresses in Fort Bend or Montgomery counties. Equipment-heavy businesses carry a lot of business personal property, so the April 15 rendition matters more here than in most places.

Storm season is a tax issue too. After major Gulf Coast storms, the IRS often postpones federal filing and payment deadlines for businesses in the declared counties. We watch for those notices so you don't file early in a hurry, or late without relief.

What does a typical Houston client need from us?

Many come to us with books that fell behind during a busy project stretch or after a storm. Others need payroll for field crews across several job sites, or quarterly planning because their income swings too much for last year's estimates to fit. One accountant keeps it all together, and we file the federal return, the franchise report and the sales tax returns on time.

Local tax facts for Houston
ItemDetail
Sales tax rate8.25%: 6.25% state, 1% city and 1% for METRO, the transit authority
CountyHarris County, with parts of the city in Fort Bend and Montgomery counties
Appraisal districtHarris Central Appraisal District (HCAD) 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

KatySugar LandThe WoodlandsPearlandCypressSpringPasadena

Running a business in Houston?

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

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Who we help

Which Houston businesses do we work with?

Owners who want one person on their numbers all year.

Energy and industrial services

Project-based revenue, equipment depreciation and taxable service checks.

Medical practices

Staff payroll, owner salary planning and monthly books.

Import, export and logistics

Inventory, freight costs and multi-state sales tax.

Builders and contractors

Job costing, draws and subcontractor 1099s.

Restaurants

Tip reporting, daily sales tax and shift payroll.

Owners with foreign ties

ITINs, Form 5472 for foreign-owned LLCs and returns for non-residents.

Questions

Still wondering?

Ask anything else on a free 30-minute call.

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What is the sales tax rate in Houston?

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

Does the IRS extend deadlines for Houston after hurricanes?

Often, yes. When a storm brings a federal disaster declaration, the IRS usually postpones filing and payment deadlines for the affected counties. Check the IRS disaster relief page for the dates.

Which appraisal district does a Houston business file with?

Most Houston addresses file with the Harris Central Appraisal District. Addresses in Fort Bend or Montgomery counties file with those districts.

Do you help foreign owners of Houston LLCs?

Yes. We prepare Form 5472 and the pro forma 1120 for foreign-owned single-member LLCs, and help owners get an ITIN.

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