Bookkeeping, payroll and tax help for Katy businesses
Katy businesses pay no state income tax, but they collect 8.25% sales tax, render business property to the Harris, Fort Bend or Waller County 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 for one monthly fee.
Updated November 2026
What's different about running a business in Katy?
Katy is one of the fastest-growing suburbs west of Houston, home to many families with ties to the energy industry. Its small businesses follow the households: home services and remodeling, healthcare and therapy practices, tutoring and youth activities, restaurants, and energy-sector consultants working for themselves.
A big share of the Katy area is unincorporated, so the sales tax rate and the appraisal district depend on the exact address. The city of Katy charges 8.25%, but a business just outside city limits may collect a different local rate, and the address can fall in Harris, Fort Bend or Waller County. Getting this right at setup avoids collecting the wrong rate for years.
Energy consultants often have uneven income from project work, which makes quarterly estimates and cash planning more important than for a steady salary.
What does a typical Katy client need from us?
A correct sales tax setup for the exact address, payroll for growing practices and service crews, and quarterly planning for consultants. One accountant handles the books, payroll and the federal and Texas returns.
| Item | Detail |
|---|---|
| Sales tax rate | 8.25% in the city of Katy: 6.25% state plus 2% local. Addresses outside city limits can differ, so check the Comptroller's rate locator |
| County | Harris, Fort Bend and Waller counties |
| Appraisal district | Harris Central Appraisal District, Fort Bend Central Appraisal District or Waller County Appraisal District, depending on the address. Business personal property renditions are due April 15 |
| State income tax | None on wages or business profit |
| Franchise tax | Report due May 15. No tax due at or under $2,650,000 of revenue, but the information report is still required |
| Payroll | Federal withholding plus Texas unemployment tax (TWC) on the first $9,000 of wages |
Nearby areas we also serve
Sources
- Texas Comptroller: Sales and use tax
- Texas Comptroller: Franchise tax
- Texas Workforce Commission: Employers
- Texas Comptroller: Property tax rendition
- Texas Comptroller: Sales tax rate locator
General information, not tax advice for your situation.
Running a business in Katy?
One accountant for your books, payroll, sales tax and both returns, on one monthly fee.
Book a callWhich Katy businesses do we work with?
Owners who want one person on their numbers all year.
Home services and remodeling
Job costing, taxable work and crew payroll.
Healthcare and therapy practices
Staff payroll and owner salary planning.
Energy consultants
Uneven project income, estimates and an entity check.
Tutoring and youth activities
Prepaid packages and part-time payroll.
Restaurants
Daily sales tax and tip reporting.
Real estate investors
Rental books and depreciation.
What can we take off your plate?
Every service works the same wherever you are. One job, or all of it every month.
Bookkeeping
from $250/mo
Monthly books in QuickBooks Online or Xero, plus catch-up work when you're behind.
See the servicePayroll
setup from $200
Gusto or ADP set up, run and filed for your whole team.
See the serviceSales tax
from $75/mo
Nexus checks, permits and returns in every state where you owe.
See the serviceBusiness tax returns
from $650
Form 1065, 1120-S or 1120 plus your state returns, prepared and e-filed.
See the servicePersonal tax returns
from $450
Form 1040 and your state return for owners, freelancers and families.
See the serviceTax planning and CFO
review from $350
Entity choice, owner salary, quarterly estimates and forecasts.
See the serviceLLC formation
from $299 + state fee
Your LLC in any state, the EIN and an S-Corp election if it fits.
See the serviceITIN and cross-border
from $300
ITINs, US expat returns, non-resident returns and Form 5472.
See the serviceWhat is the sales tax rate in Katy, Texas?
It's 8.25% in the city of Katy. Parts of the Katy area outside city limits can have a different local rate, so check your exact address.
Which county is Katy in?
The Katy area spans Harris, Fort Bend and Waller counties. Your county decides your appraisal district.
My income from project work is uneven. How do I handle estimates?
You can pay based on last year's tax to stay safe, or use the annualized method to match payments to when you earned the money.
Tell us what's messy. We'll tell you what it takes.
Tell us what you need and get a fixed price before any work starts. No pressure and no contract.