Best Tax Lawyers in Houston
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
List of the best lawyers in Houston, United States
About Tax Law in Houston, United States
Tax law in Houston covers the rules and regulations governing how individuals, businesses, and other entities pay taxes to federal, state, and local authorities. While the Internal Revenue Service (IRS) sets and enforces federal tax rules, the Texas Comptroller's Office oversees state taxes. Houston does not charge a city income tax, but residents and businesses are subject to property taxes, sales and use taxes, franchise taxes, and various federal tax obligations. Navigating the tax system, addressing disputes, and ensuring compliance with federal, state, and local tax laws are key aspects of dealing with taxes in Houston.
Why You May Need a Lawyer
There are many situations where seeking the assistance of a tax lawyer in Houston can be beneficial. Common reasons include:
- Facing an IRS audit or tax investigation
- Disputing tax assessments or penalties
- Failure to file tax returns or pay taxes on time
- Obtaining guidance on the tax implications of major financial decisions, such as buying or selling a home, starting a business, or inheritance matters
- Setting up tax-advantaged business structures
- Addressing past due taxes and negotiating payment plans or offers in compromise
- Managing payroll and employment taxes for businesses
- Advising on state and local tax issues, including property, sales, and franchise taxes
- Dealing with criminal tax charges
Local Laws Overview
Houston taxpayers are primarily governed by federal tax laws set by the IRS and state regulations from the Texas Comptroller's Office. Key local tax considerations include:
- No state or city personal income tax in Houston
- Sales tax in Houston is composed of the Texas state rate plus Houston’s local rate
- Businesses in Houston must comply with the Texas franchise (margin) tax
- Property taxes are assessed by the Harris County Appraisal District and collected by various local taxing authorities
- State-specific tax incentives may apply, especially for businesses in energy, real estate, and technology sectors
- Various deadlines apply for filing and paying taxes at state and federal levels
- Disputes with the IRS, the Texas Comptroller, or local tax authorities generally follow different resolution procedures, often starting with an administrative process before courts are involved
Frequently Asked Questions
What types of taxes are people in Houston typically required to pay?
Most Houston residents pay federal income taxes, local property taxes, and sales and use taxes. Businesses may owe franchise taxes and other industry-specific taxes, but there is no state or city personal income tax in Texas.
Does Houston have a local income tax?
No. Houston does not levy a local or city income tax on residents or businesses.
What is the sales tax rate in Houston?
The combined sales tax rate in Houston is generally 8.25 percent. This includes the 6.25 percent Texas state sales tax and up to 2 percent in local taxes.
How do I dispute a property tax assessment in Houston?
You can protest your property value assessment with the Harris County Appraisal District, usually by submitting a written protest. If you disagree with the outcome, you may appeal to the Harris County Appraisal Review Board or seek relief through the courts.
What steps should I take if the IRS audits me?
Review the IRS audit notice carefully, gather your documentation, and consider contacting a tax lawyer to assist in responding and representing your case during the audit.
Can a tax lawyer help with unpaid back taxes?
Yes. A tax lawyer can negotiate with tax authorities, help set up payment agreements, apply for penalty abatements, or even negotiate offers in compromise to settle your debt for less.
Are there any state tax incentives for businesses in Houston?
Yes. Texas offers various programs, including sales tax exemptions for manufacturing, incentives for job creation, and research and development tax credits. A tax lawyer can identify which incentives may apply to your business.
How do I handle taxes if I inherit property in Houston?
While Texas does not have a state inheritance or estate tax, federal estate tax may apply to larger estates. Reporting requirements and the handling of taxes can be complex, so consulting a tax lawyer or accountant is recommended.
What federal tax forms do businesses in Houston typically need to file?
Common forms include IRS Form 1120 or 1120S for corporations, Form 1065 for partnerships, and Form 1040 Schedule C for sole proprietors, in addition to payroll and informational returns.
What should I do if I receive a notice of federal or state tax penalties?
Read the notice carefully, confirm its accuracy, and contact a tax lawyer to review your options. In some cases, you can appeal or request penalty abatement if you have reasonable cause.
Additional Resources
Several government agencies and organizations can help with tax concerns in Houston:
- Internal Revenue Service (IRS) - Handles federal tax matters
- Texas Comptroller of Public Accounts - Oversees state taxes, business franchise tax, and sales tax
- Harris County Appraisal District - Assesses property for local taxation in Houston
- Local IRS Taxpayer Assistance Centers - Offer in-person help for federal tax matters
- Houston Bar Association - Provides lawyer referral services
- Legal Aid Organizations - Offer assistance for qualifying low income individuals facing tax issues
Next Steps
If you are facing a tax issue in Houston, begin by gathering all your relevant documents and carefully reviewing any notices or correspondence you have received from tax authorities. Consider reaching out to a qualified tax lawyer who can evaluate your situation, explain your options, and represent you in communications or proceedings with the IRS, Texas Comptroller, or local authorities. For complex issues, professional guidance can protect your rights and financial interests. Most tax lawyers offer consultations that can help you understand the scope of your issue and what steps to take next.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.