Taxes & Incentives

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, with the second-lowest property tax rate, and a competitive tax climate, along with 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.

Sugar Land Property Tax Rates

Sugar Land Property Tax Rates

Taxing Entity	2024 Tax Rate (per $100 valuation)
City of Sugar Land	0.353210
Fort Bend County General	0.4120000
Fort Bend Drainage District	0.0100000
Fort Bend ISD	0.9869000
Total	1.7621100

Special Taxing Districts

Sugar Land Special Taxing Districts	2024 Tax Rate (per $100 valuation)
First Colony LID #1	0.1100000
First Colony LID #2	0.1600000
First Bend LID #2	0.1600000
First Bend LID #10	0.5350000
First Bend LID #14	0.1060000
First Bend LID #15	0.2600000
First Bend LID #17	0.4300000
FBC MUD #136	0.3800000
FBC MUD #137	0.2350000
FBC MUD #138	0.2300000
FBC MUD #139	0.2900000
Burney Road MUD	0.220000

Texas Business Incentives & Financing

Sugar Land, TX, offers one of the nation’s top corporate tax environments, helping businesses of all sizes thrive—from startups seeking funding to global brands pursuing corporate tax incentives near Houston. Our Economic Development team partners with businesses to identify the right state and local financial incentives, including abatements and exemptions on business property taxes. Whether you're looking to reduce real estate tax rates or explore other tax relief options, Sugar Land delivers results.

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. 

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

Sales Tax Rebate Agreement

Chapter 380 Agreement 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 2.0% sales and use tax collected from local business entities.

Headquarters Retention Incentive Program

The Headquarters Retention Incentive Program was designed to retain national and regional office headquarters in the City of Sugar Land.

Great Home Programs

The purpose and intent of Great Homes is to empower Sugar Land's residents and communities to participate with the City in preserving, protecting, and enhancing Sugar Land's single-family housing and neighborhood areas.

Commercial Revitalization Grant

The Commercial Revitalization Grant Program (the “Program”) is a reimbursement grant program offered by the Sugar Land 4B Corporation (“SL4B”) intended to promote new or expanded business enterprises by stimulating redevelopment, reinvestment, and aesthetic improvements of aging retail properties and commercial centers in the City of Sugar Land (the “City”). This pilot program will support the creation of distinct and vibrant activity centers by promoting attractive and welcoming public spaces, renovated storefronts and building facades, and pedestrian-friendly settings.