
Texas offers favorable tax rates as it was ranked second in the nation to have the lowest per capita state tax. Texas does not levy corporate income taxes and is one of the few states in the United States that follows this practice. This pro business philosophy is shared by the City of Mercedes and the Development Corporation of Mercedes.
| Tax Structure | |
|---|---|
| Tax Rate per $100 | |
| City of Mercedes | 0.7900 |
| Hidalgo County | 0.5900 |
| Mercedes ISD | 1.2900 |
| South Texas ISD | 0.0492 |
| Drainage District #1 | 0.0725 |
| South Texas College | 0.1491 |
| Sales Tax Rate | |
|---|---|
| Mercedes | 2.00 % |
| Texas | 6.25% |
| Hidalgo County | 0.00% |
| Total | 8.25% |
| State Taxes | |
|---|---|
| State Franchise | 4.25% |
| State Corporate Income | 0.00% |
| Personal Income | 0.00% |
| Corporate Income | 0.00% |
| Ad Valorem | 0.00% |