Texas · best for small business · #15 of 50 states

Best Cities for Small Business in Texas

Texas ranks #15 of 50 for small business, with a small business score of 64.3. Leander is its best city for small business at 73.5.

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#1 city in TX for small business

Leander73.5

Small Business score out of 100

Texas, all states: #15 of 50
Population: 74,067

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Tax burden

7.77%

% of income

Fiscal health

72/100

GDP + debt + reserves

Pop. growth

+1.25%

Census estimates

Unemployment

4.2%

BLS LAUS

Economy score

43/100

Income + jobs + growth

Why Texas Works for Small Business

Texas ranks #15 out of 50 for small business owners and entrepreneurs, offering a favorable climate for new ventures. The state's fiscal health score of 72/100 signals a well-managed state government with sustainable finances — the kind of stability that benefits long-term business planning.

Tax policy directly impacts the bottom line. Texas's overall tax burden is 7.77% of income, and crucially, there is no state income tax — a major advantage for business owners whose personal and business finances often overlap. The 8.2% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 43/100) with 4.2% unemployment shows healthy labor availability.

Population growth of 1.25% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 61/100) produces a reasonably well-prepared workforce. A typical home value of $299,367 helps attract and retain employees who can afford to live nearby.

All 74 Cities Ranked for Small Business

# City	Grade	Small Business score	Overall	Household finances	Economy	Growth	Population
1Leander	A	73.5	65.2	90	84	82	74,067
2The Woodlands	A	72.9	63.6	91	92	—	121,002
3Frisco	A	70.9	66.6	99	87	50	219,304
4McKinney	A	70.6	65.3	84	75	79	210,600
5Mansfield	A	70.2	63.4	82	73	88	77,510
6Flower Mound	A+	69.8	67.4	98	89	38	78,389
7Round Rock	A	67.4	64.9	69	67	85	127,786
8Cedar Park	A	66.9	66.3	86	79	48	78,301
9Atascocita	B	66.3	57.0	78	72	—	99,354
10Georgetown	A	65.5	63.4	67	61	91	85,999
11Wylie	B+	65.4	62.6	82	74	57	60,334
12Pflugerville	B+	65.2	62.3	80	73	57	65,971
13League City	B+	64.8	62.2	83	74	56	116,215
14New Braunfels	B+	64.6	60.0	64	62	94	104,643
15Kyle	B+	64.5	60.7	63	65	95	56,823
16Allen	A	64.0	63.3	86	78	39	110,265
17Little Elm	B	63.9	56.7	76	72	72	54,820
18Sugar Land	A	63.4	63.0	89	79	30	110,016
19Lewisville	B+	62.0	61.0	65	61	65	131,080
20Plano	A	61.8	62.9	77	70	41	290,594
21Richardson	B+	60.4	62.7	65	65	47	118,731
22Pearland	B+	60.4	59.5	84	72	34	127,514
23Carrollton	B+	59.8	62.7	71	67	34	133,740
24Rowlett	B+	59.6	59.4	78	69	37	65,463
25Grapevine	B+	59.5	60.6	76	72	31	51,139
26Conroe	B	58.1	56.2	53	53	84	102,360
27Midland	B	57.6	56.9	56	64	68	136,640
28Burleson	B	57.4	58.7	68	63	50	52,918
29Austin	B	56.9	58.1	59	65	48	979,539
30North Richland Hills	B	55.8	57.4	69	64	34	70,780
31Fort Worth	C+	54.3	54.2	51	55	60	963,194
32Denton	B	54.2	57.3	44	53	60	152,866
33Euless	B	53.9	55.8	62	57	43	60,421
34Irving	B	53.3	57.3	56	57	36	256,492
35Grand Prairie	C+	52.7	54.0	53	55	50	201,883
36Missouri City	C+	52.6	54.4	68	56	30	76,558
37DeSoto	C	51.7	52.0	62	49	35	56,211
38Temple	C+	51.6	52.5	40	49	63	89,602
39Texas City	C	51.6	52.3	40	43	69	55,364
40Odessa	C+	51.4	52.8	42	54	64	115,322
41San Angelo	C+	51.3	54.9	49	53	47	99,674
42Tyler	C+	50.8	53.8	47	49	51	109,215
43Spring	D	50.7	46.8	60	47	—	68,580
44Amarillo	C+	50.6	52.5	40	54	52	201,885
45Garland	C+	50.3	54.5	49	54	36	246,844
46Abilene	C	49.4	52.0	38	50	54	128,053
47Arlington	C	48.7	51.2	49	53	38	397,742
48San Antonio	C	48.2	49.8	37	49	51	1,479,835
49McAllen	C+	48.0	52.6	30	43	52	145,385
50Dallas	C	48.0	50.7	40	51	40	1,307,930
51Mesquite	C	48.0	49.2	47	50	43	149,299
52Lubbock	C	47.2	50.2	32	50	54	264,814
53Victoria	C	47.0	50.5	36	48	45	65,625
54Bryan	C+	46.6	54.7	24	49	52	87,939
55Wichita Falls	C+	46.2	52.6	34	47	41	102,581
56El Paso	C	45.6	52.3	32	45	38	680,130
57Longview	C	45.3	51.1	36	45	37	82,923
58Corpus Christi	D	45.3	45.6	38	48	41	317,419
59Mission	C	44.7	50.7	31	37	42	87,038
60Laredo	C	44.5	50.3	29	44	42	257,619
61San Marcos	C	44.3	51.4	13	45	66	70,897
62Edinburg	C	43.9	49.8	18	40	54	104,550
63Houston	D	43.8	44.3	32	45	44	2,328,253
64Waco	C	43.5	50.2	21	43	48	143,570
65Killeen	D	43.4	46.1	35	39	46	158,159
66Galveston	D	43.0	48.2	25	43	42	53,424
67Pasadena	D	42.6	46.9	34	41	32	149,433
68Harlingen	D	40.8	47.6	17	37	39	72,087
69College Station	C+	40.3	54.5	8	43	44	124,570
70Baytown	D	40.0	43.5	33	29	40	85,205
71Beaumont	F	37.2	38.0	26	38	37	113,279
72Pharr	D	35.9	45.1	12	28	29	80,333
73Brownsville	D	35.4	42.7	19	20	31	189,177
74Port Arthur	F	28.9	36.6	7	16	24	55,828

City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.

Compare: States with Similar Small Business Rankings

Also See: Texas for Other Lifestyles

Frequently Asked Questions

Is Texas a good state for small business?

Texas ranks #15 out of 50 for small business with a persona-weighted score of 64.3/100. Its strongest relevant category is Affordability (74/100) and its weakest is Outdoor Access (5/100).

What is the best city for small business in Texas?

Leander ranks #1 in Texas for small business with a score of 73.5/100, followed by The Woodlands and Frisco.

What factors are most important for small business in Texas?

Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.