Quarterly Tax Payment Deadlines in Dallas, Texas
Paying Business Taxes in Dallas, Texas: Complexity and Time Sensitivity3 min read
In Dallas, Texas, the taxes you pay as a business are complex, and the deadlines for those payments can feel overwhelming and leave you scrambling to meet all your obligations. The dates and rules vary depending on the type of business you operate and the type of taxes you're responsible for, but this guide will give you insight into the various deadlines and guidelines that you must follow.
Business owners in Dallas have to comply with the local, state, and federal government's rules regarding quarterly taxes. To make sure you're paying all the necessary taxes by their due dates and filing them correctly, it helps to understand what those taxes are and when they must be paid.
Dallas Money Taxation Types and Deadlines
The City of Dallas imposes a sales tax rate of 8.25% on all retail sales, leases and rentals of most goods, as well as taxable services. The state of Texas collects a 6.25% state sales tax from all retail sales, leases and rentals as well. Businesses that must collect sales tax must submit payments to the Texas Comptroller of Public Accounts quarterly. Payment is due April 30, July 31, October 31, and January 31 of the following year.
The City of Dallas also charges a 2% occupancy tax, which applies to lodging establishments and to motor vehicle rental businesses that have a place of business within the city limits. The occupancy tax is due quarterly on the 20th day of the month following the reporting period. Payments for the quarters ending March, June, September, and December, are due April 20th, July 20th, October 20th, and January 20th, respectively.
Businesses in Dallas must also pay the Texas Franchise Tax, based on total taxable margin. The taxable margin is calculated by subtracting all the cost of goods sold, cost of services, compensation of officers, and cost of labor from the amount reported as total revenue. The Texas Franchise Tax is due May 15th on an annual basis.
In addition to the state and local taxes, businesses also must pay the federal government taxes. The most common is the federal income tax. Most businesses in Dallas are subject to the self-employment tax, and corporations are subject to the corporate income tax, in addition to the federal unemployment and property taxes. The federal taxes are due April 15th and September 15th.
It's important to note that these due dates are for taxpayers in Dallas, specifically. Depending on your type of business, annual income, and other factors, you may be subject to other taxes as well, such as payroll taxes, liquor excise taxes, or franchise taxes. Furthermore, depending on the size of your business, you may need to make estimated tax payments throughout the year in order to pay your taxes in full when they're due.
In Dallas, you must pay various local, state, and federal taxes on a quarterly basis, and the due dates vary depending on the type of business you run and the type of taxes you're responsible for. If you're not sure what taxes you must pay or if you need help managing and organizing them, consider turning to a tax professional to ensure that your business meets all of its financial obligations.