Texas is leading the way as a thriving business destination. Our state’s economic footprint rivals entire nations—as the 8th largest economy worldwide, Texas has become a powerhouse on the global stage. For those of us who call Texas home, it’s no surprise why so many companies and talented professionals are joining us here. With a business-friendly climate, attractive tax structure, and affordable cost of living, Texas is a place where companies and employees alike can flourish.
Texas is a Magnet for Major Corporations
The trend of businesses moving to Texas isn’t new, but it has accelerated since 2020, with major names making the Lone Star State their new base:
• Tesla: When Elon Musk announced Tesla’s move to Austin in 2021, he cited Texas’ strategic location for Tesla’s massive new Gigafactory, creating new jobs and innovation right here at home.
• Oracle: In 2020, Oracle made the move from Silicon Valley to Austin, recognizing Texas as an ideal setting for its growth plans, saving millions in operational costs along the way.
• Hewlett Packard Enterprise (HPE): In 2020, HPE returned to its Texas roots by shifting its headquarters to Houston, further strengthening Texas’ appeal to the tech and energy sectors.
• Charles Schwab moved to Westlake, Texas, in 2021 to reduce operating costs. Chairman and founder Charles Schwab told Forbes that California’s high taxes were a major factor in the decision.
• CBRE Group: This real estate giant relocated to Dallas in 2020, taking advantage of our central location and efficiency to better serve clients nationwide.
• AECOM: the infrastructure consulting firm relocated its headquarters from Los Angeles to Dallas in October 2021.
• Caterpillar: The construction equipment giant announced in 2022 it would be relocating from Illinois to the Dallas-Fort Worth area, finding Texas’ business-friendly environment well-suited to its global operations.
• Pabst Brewing Company: In 2020, Pabst moved its headquarters from Los Angeles to San Antonio, drawn to Texas’ growing reputation as a cultural and corporate hotspot.
The Texas Advantage: Low Taxes and Pro-Business Policies
Texas offers a highly attractive tax environment for businesses, with a combination of lower tax brackets and no personal income tax. We’re proud to be one of the top states for business incentives, providing companies with a competitive edge. The combined state and federal corporate tax rate in Texas is just 21%—the lowest in the nation—making Texas a compelling choice for companies comparing costs with states like California.
Additionally, Texas’ pro-business climate is designed to support smaller and emerging businesses. Our franchise tax stands at just 0.375% for companies with annual receipts between $1.18 million and $10 million, and businesses with receipts below $1.18 million pay no franchise tax at all. This approach reflects Texas’ commitment to creating an environment where businesses of all sizes can thrive and grow.
Strategic Location and Infrastructure that Drive Success
The strategic location and robust services of the Houston Ship Channel complex play a critical role in Texas’ economic success. As the nation’s largest port for waterborne tonnage, it not only positions Texas as a central hub for trade and logistics but also strengthens our state’s connections to global markets. This gateway fuels industries across Texas, from energy and manufacturing to technology and agriculture, enabling efficient access to raw materials, products, and international trade routes. By facilitating commerce on such a large scale, the Houston Ship Channel drives economic growth, supports thousands of jobs, and reinforces Texas’ reputation as a leading force in national and global trade.
We’re also home to some of the busiest airports in the country, such as Dallas-Fort Worth International Airport and George Bush Intercontinental Airport, making it easier for businesses to connect internationally and handle logistics seamlessly. Texas’ vast network of highways and railways further supports supply chain operations, making our state a natural choice for companies like Amazon and FedEx, who have expanded distribution centers here to leverage this infrastructure.
A Growing Talent Pool
Texas’ renowned universities—UT Austin, Texas A&M, and Rice University, among others—produce a highly educated workforce, and our population growth means a steady stream of talent for our industries. Companies from tech to healthcare are finding not only the skills they need but a work-ready workforce eager to join Texas’ thriving economy.
Affordable Living and High Quality of Life
Texas’ cost of living is a key advantage. While our population has grown, our housing and living expenses are still well below those of places like San Francisco, Los Angeles, and New York City. This affordability allows Texas companies to attract and retain top talent, helping people build their lives here with room to grow.
Sales tax: Houston residents pay a combined state, county, and city sales tax of 8.25%. However, groceries, over-the-counter medication, and prescription drugs are exempt from this tax.
Housing: The median home price in Houston is $345,000, compared to the national average of $428,700.
Cost of living index: According to the C2ER Cost of Living Index Q3 2024, Houston has the third-lowest living costs among the most populous U.S. metro areas. Houston’s living costs are 5.3 percent below the nationwide average and 23.4 percent below the average of the nation’s most populous metropolitan areas.
From the Hill Country and Big Bend to the Gulf Coast, Texas offers an unmatched quality of life and diverse landscapes for recreation. Our state’s rich culture, arts, and welcoming communities give companies and their employees a place to feel at home, driving loyalty and retention.
Looking Forward: Texas’ Bright Business Future
As we continue to attract top companies from around the world, Texas is far more than a business hub—it’s a launching pad for the future of innovation and growth. For any business leader considering expansion or relocation, Texas offers a unique blend of opportunity and community, making it the place to be for the next generation of visionaries and innovators.
At Achilles Group, we’re proud to serve Texas-based businesses and the exceptional leaders who drive our state’s growth and success. We are dedicated to supporting Texas companies with HR expertise and strategic leadership guidance through our Fractional HR approach that fuels lasting impact. As Texas continues to thrive as a top destination for business, we’re here to ensure that the people and culture within your organization are primed for growth, strength, and profitability. Together, we’re building the future of business in the Lone Star State.
Illustration Credit: Comptroller.Texas.Gov | June 2024 | David Green and Dan Olsen.
