Rockdale offers a lower-cost place to build and operate in Central Texas: competitive taxes, lower labor and housing costs than the Austin metro, and power prices well below the national average.
- $2.49Total property tax rate per $100 of value, 2026
- $0State personal income tax
- 6.12¢Average industrial power price per kWh in Texas (U.S.: 8.13¢)
- $1,121Average weekly wage in Milam County (U.S.: $1,654)
Property Taxes
Property in the Rockdale city limits is taxed by four local taxing units. Rates are per $100 of appraised value.
| Taxing unit | M&O | I&S | Total |
|---|---|---|---|
| City of Rockdale | $0.642333 | $0.139808 | $0.782141 |
| Milam County | $0.501180 | $0.044750 | $0.545930 |
| Rockdale ISD | $0.707200 | $0.361900 | $1.069100 |
| Milam County ESD #1 | $0.089921 | $0.000000 | $0.089921 |
| Total | $1.940634 | $0.546458 | $2.487092 |
Source: Milam Appraisal District, 2026 adopted tax rates.
Qualifying projects can also reduce their taxes with city and county tax abatement and a state JETI school tax abatement. See Incentives & Financing →
State and Local Taxes
No personal income tax
Texas has no state personal income tax, which helps you recruit and keep employees and owners.
Franchise tax
Texas’s business tax is 0.75% of taxable margin, or 0.375% for retail and wholesale. Businesses with revenue under $2.65 million owe no tax.
Sales tax: 8.25%
- State of Texas: 6.25%
- City of Rockdale: 1.0%
- Rockdale MDD: 0.5%
- Milam County: 0.5%
Manufacturing exemptions
No sales tax on manufacturing machinery and equipment, or on electricity and natural gas used in manufacturing.
Sources: Texas Comptroller of Public Accounts (franchise tax for 2026 and 2027 reports); City of Rockdale.
Power and Utilities
Rockdale is in Texas’s competitive electricity market on the ERCOT grid, so businesses choose their own retail electric provider. Industrial power prices in Texas averaged 6.12¢ per kWh in 2024, about 25% below the U.S. average of 8.13¢.
City of Rockdale water and wastewater rates, including commercial and industrial rates, are on the Available Utilities page.
See Available Utilities →Source: U.S. Energy Information Administration, Electric Power Annual.
Labor Costs
Average wages in Milam County are about 32% below the U.S. average and 46% below Travis County, while employers can still recruit from the Austin, Temple-Killeen, and Bryan-College Station labor markets.
Average weekly wage, all industries, first quarter 2026. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages.
See Talent & Workforce →Cost of Living
Lower living costs help employers recruit and keep workers without paying metro-level wages.
- 12%Lower prices in nonmetro Texas than the U.S. average (Austin metro: 2% lower)
- $240,000Average new home in Rockdale (Austin metro median: $412,000)
- $984Median monthly rent in Milam County (Austin metro: $1,726)
Sources: U.S. Bureau of Economic Analysis, Regional Price Parities (2024); Rockdale new-home listings and Unlock MLS (2026); U.S. Census Bureau, American Community Survey.
See Workforce Housing →Want a cost estimate for your project? Call the MDD office at 512-446-2111.
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