No City Property Tax in Gun Barrel City. You Heard That Right.

At the Gun Barrel City Economic Development Corporation (GBCEDC), our mission is simple: to make our city the premier destination for commerce on Cedar Creek Lake. The cornerstone of this mission is a fiscal policy virtually unmatched in the state: a 0% municipal property tax rate.

Keep More of What You Earn

In most Texas cities, property taxes are a fixed, heavy burden that eats into monthly cash flow before doors even open. But Gun Barrel City flipped the script. By leveraging a high-volume sales tax model, Gun Barrel City has successfully "zeroed out" the city’s portion of the property tax.

For a business owner, this isn't just a perk — it’s a competitive edge. It means lower occupancy costs, higher net operating income (NOI), and more liquid capital to reinvest in inventory, talent, and expansion.

Operational Agility in 2026

The financial benefits of a 0% municipal property tax rate translate directly into operational agility. In an era of fluctuating interest rates and rising supply chain costs, keeping more of your capital is vital. Here’s how this competitive edge compounds:

• Cash Flow Reinvestment: The thousands saved on municipal taxes annually can be pivoted directly into inventory, marketing, or higher wages for your team.
• Valuation Stability: Real estate value is driven by NOI. By removing municipal property taxes from the expense column, commercial properties naturally carry higher valuations, making them more attractive to investors and easier to leverage for future growth.
• Business Personal Property (BPP) Relief: Texas businesses pay property tax on equipment and furniture. In Gun Barrel City, the 0% rate applies here too. When combined with the newly increased statewide BPP exemption of $125,000, many small businesses in Gun Barrel City now pay virtually zero taxes on their essential tools and technology.

It is important to note that tax rates are always subject to change and are re-evaluated alongside city needs by city council every year. Contact us if you have any follow-up questions on Gun Barrel City’s tax code.

Supplementary Incentives

Business owners in Gun Barrel City also benefit from additional business incentives the GBCEDC provides. The GBCEDC does extensive research to find the best total package of incentives for your business, centered on real data, such as expected sales taxes paid, jobs created or retained, wages paid, local purchases of products and services, employment gains and more. Special consideration is given to high-demand businesses with bases in medical/health, hospitality, retail, food and dining and distribution. Incentives include:

• Small-Business Grants
• Infrastructure Partnerships
• Low-Interest Loans
• Technical & Site Selection Support

These incentives reinforce the GBCEDC’s commitment  to recruiting high-quality businesses and employment opportunities that enhance the quality of life for residents.

Your Partner in Efficient, Responsible Growth

Whether you are a local entrepreneur or a national brand, the GBCEDC is your navigator. We offer site selection assistance, streamlined permitting through the city, and performance-based incentives for projects that bring primary jobs to our community. Contact us to learn more about the competitive advantages we provide.