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Not sure what "effective" tax rate means, but 9.6% seems accurate to me for income tax only, and can go up to 12%. Sales tax is like 7 something, and all the ot
by mym1990 2y ago
Not sure what "effective" tax rate means, but 9.6% seems accurate to me for income tax only, and can go up to 12%. Sales tax is like 7 something, and all the other taxes are all over the place.
- pton_xd 2y agoRight but the Texas income tax rate is 0% and the sales tax is 6.25%. So I'm curious how they arrived at a 12.5% vs 9.6% effective tax rate.
- silverquiet 2y agoSpeaking as a Texan, Texas has plenty of ways to tax you. My favorite is the punitive registration fees they recently added to electric cars.
- pton_xd 2y agoBetter than California requiring 0.65% of your vehicle value every year in licensing fees. Washington state also added a yearly EV registration fee. Their argument is the gas tax pays for road maintenance, but EVs don't consume gas, so they need some other way of extracting money from those owners.
- paulryanrogers 2y agoEVs are heavier which causes more wear on the roads.
- mym1990 2y agoThis makes sense. Gas taxes in almost all states pay for a lot of programs related to DMV activities and what not, so DMVs are having to figure out other ways to recoup the costs of EVs.
- Rebelgecko 2y agoCalifornia has had extra EV registration fees for years. Unfortunately it makes sense to do that if road maintenance/repairs are dependent on gas taxes
- silverquiet 2y agoI did the math and it seems that the TX legislature assumes an EV is going to be driven around 80,000 miles a year.
- beaeglebeachedd 2y agoIsn't that because the gas tax is regressive against the poor who have older cars with bad gas mileage and this compensates by having rich electric owners pay the share of gas tax they've skirted?
- mym1990 2y agoI heard property tax in Texas is the big one.