When people ask what are the taxes in Houston, the good news is that Texas is considered one of the most tax-friendly states in the U.S. Houston residents do not pay state income tax, which significantly increases take-home pay. However, individuals are still responsible for federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). In addition, Houston has property taxes, which are relatively higher compared to some other states, and sales tax, which generally totals around 8.25% when local taxes are included. Understanding what are the taxes in Houston is essential for proper budgeting, financial planning, and compliance. At Paracha Accounting, we help individuals and businesses clearly understand their tax responsibilities and minimize liabilities through strategic planning.
Where Can I Get My Taxes Done for Free in Houston, Texas?
Many taxpayers searching for what are the taxes in Houston also want to know where they can file without paying high preparation fees. In Houston, free tax preparation options are available through IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. These services are generally available to individuals with low to moderate income, seniors, and students, and they help with basic federal tax returns. However, free services often have limitations and may not cover complex tax situations such as self-employment income, multiple investments, or IRS notices. For accurate filings and long-term tax planning, Paracha Accounting offers professional CPA services to ensure compliance and maximize deductions beyond what free programs can provide.
Can Tax Preparers Help With IRS Problems or Audits?
If you’re researching what are the taxes in Houston, it’s also important to understand what happens when tax issues arise. Yes, professional tax preparers and CPAs can help with IRS problems, audits, back taxes, and notices. A qualified tax professional can represent you before the IRS, respond to audit requests, correct filing errors, and negotiate payment plans or penalty relief. This support is especially valuable for Houston residents with complex income sources or prior tax issues. At Paracha Accounting, our experienced CPAs assist clients with IRS audits, tax disputes, and compliance matters, helping them resolve issues efficiently while protecting their financial interests.