Laredo, TX Taxes 2025
Complete local tax guide and OBBBA calculator
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Laredo Tax Overview 2025
Border city with no state income tax. Trade hub.
Local Income Tax
0%
City/county rate
Sales Tax
8.25%
State + local
Property Tax
1.89%
Effective rate
Median Home
$175,000
Home value
No Local Income Tax!
Laredo does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Laredo is located in Texas (0% state income tax)
💼 Laredo Local Income Tax
Laredo does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Texas) and federal income tax.
This is good news for Laredo residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Laredo
🛒 Laredo Sales Tax 2025
The combined sales tax rate in Laredo is 8.25%. This includes both the Texas sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Laredo. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Texas law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.13 | $54.13 |
| $100 | $8.25 | $108.25 |
| $500 | $41.25 | $541.25 |
| $1,000 | $82.50 | $1,082.50 |
🏠 Laredo Property Tax 2025
The average effective property tax rate in Laredo is 1.89%. Based on the median home value of $175,000, the typical homeowner pays approximately $3,308 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Laredo based on school district and other taxing authorities.
Estimated Annual Property Tax in Laredo
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $3,780 | $315 | ✓ Yes |
| $300,000 | $5,670 | $473 | ✓ Yes |
| $400,000 | $7,560 | $630 | ✓ Yes |
| $500,000 | $9,450 | $788 | ✓ Yes |
| $750,000 | $14,175 | $1,181 | ✓ Yes |
| $1,000,000 | $18,900 | $1,575 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Laredo Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Laredo Residents
All workers benefit from no state income tax plus OBBBA deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Laredo resident.
Available OBBBA Deductions:
Calculate Your Laredo Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Laredo resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Laredo?
The combined sales tax rate in Laredo is 8.25%. This includes both state and local sales taxes.
Does Laredo have a local income tax?
Laredo has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Laredo?
The average effective property tax rate in Laredo is 1.89%. On a home worth $175,000, you'd pay approximately $3,308 per year.
How do OBBBA deductions benefit Laredo residents?
All workers benefit from no state income tax plus OBBBA deductions. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.