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Taxes & Incentives

Taxes

As a state with no corporate or personal income tax, Texas allows businesses to invest in expanding their workforce, improving facilities, and boosting their bottom line. Texas has one of the lowest tax burdens in the nation and a competitive tax climate, as well as a range of advantages and powerful incentives to help your business succeed. With these factors in mind, the decision of relocating or starting your business in a Sugar Land tax climate is an easy one.

2nd lowest property tax rate in the State of Texas among cities of comparable size.

Sugar Land, TX

Sugar Land Property Tax Rates

Sugar Land Property Tax Rates

Taxing Entity	2022 Tax Rate (per $100 valuation)
City of Sugar Land	0.346500
Fort Bend County General	0.438300
Fort Bend County Drainage District	0.012900
Fort Bend ISD	1.210100
Total	2.007800

Special Taxing Districts in Sugar Land

Special Taxing Districts in Sugar Land	2021 Tax Rate (per $100 Valuation)
First Colony LID #1	0.150000
First Colony LID #2	0.200000
Fort Bend LID #2	0.149000
Fort Bend LID #10	0.656400
Fort Bend LID #14	0.115000
Fort Bend LID #15	0.405000
Fort Bend LID #17	0.545000
FBC MUD #136	0.420000
FBC MUD #137	0.360000
FBC MUD #138	0.325000
FBC MUD #139	0.400000
Burney Road MUD	0.220000

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Texas Business Incentives & Financing

One of the nation’s top corporate tax environments, Sugar Land, TX, is helping businesses thrive. Our dedicated Economic Development team works closely with businesses to find the right state and local financial incentives. From startups looking for funding to global brands seeking corporate tax incentives by Houston, Texas, these Sugar Land incentives deliver results.

From startups looking for funding to global brands seeking corporate tax incentives and abatement taxes by Houston, Texas, these Sugar Land incentives deliver results. Business property owners can qualify for incentives to real estate property tax rates and certain tax exemptions. Looking for information on property tax or abatement taxes? See more information below.

Browse Texas Business Incentives

Office Retention Incentive Program

The office retention incentive program was designed to retain national and regional office headquarters in the City of Sugar Land.

Chapter 380 Economic Development Agreements

Chapter 380 of the Texas Local Government Code allows Sugar Land to offer a range of incentives for economic development. This includes allowing the city to rebate a portion of its 1.0% sales and use tax collected from local business entities.

Direct Business Incentives

The SLDC has a direct incentive program, which may be used to provide cash grants to qualified businesses, projects and non-profits.

Qualifying businesses relocating in Sugar Land can apply for a property tax abatement based on the economic value of a project. Tax abatements are available from the City of Sugar Land, Fort Bend County, and other jurisdictions, as applicable.

Tax Increment Reinvestment Zones

Sugar Land utilizes Tax Increment Reinvestment Zones (TIRZ) as a vehicle to develop and redevelop qualified projects based on City objectives.

Economic Development and Diversification In-State Tuition for Employees

This program allows employees and family members of a qualified expanding business to pay in-state tuition rates at public higher education institutions without first establishing residency.

Product Development and Small Business Incubator Fund

The Product Development and Small Business Incubator Fund (PDSBI) is a revolving loan program financed through original bond issuances. The primary objective of the program is to aid in the development, production, and commercialization of new or improved products. Small businesses in the State of Texas are a strong focus of this program.

Skills Development Fund

The Skills Development Fund was established by the 74th Legislature in 1995. The fund utilizes training organizations such as community and technical colleges and technical schools to meet labor market needs. Small businesses and other employers can partner with these institutions for customized job training to meet the specific needs of the company.

Texas Enterprise Fund

The Texas Enterprise Fund (TEF) awards “deal-closing” grants to companies selecting between Texas and an out-of-state site. The fund serves as a financial incentive for projects which contribute significant capital investment and new employment opportunities within the state.

Texas Capital Fund

The Texas Capital Fund aids rural business development, retention and expansion by funding public infrastructure, development projects or rectifying deteriorated conditions in local communities.

Texas Enterprise Zone Program

Texas’ Enterprise Zone Program (EZP) is designed to encourage private investment and job creation in economically distressed areas of the state.

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal income tax benefit administered by the U.S. Department of Labor (DOL). WOTC reduces an employer’s federal tax liability when they hire individuals who may be disadvantaged in their job search.

Commercial and Industrial Standard Offer Program

Centerpoint Energy offers incentives to participants (Project Sponsors) who install energy efficient retrofit projects in commercial and industrial facilities. This program also accepts new construction projects, which exceed minimum energy efficiency standards. 

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