Texas Income Tax Calculator 2026

Texas Income Tax at a Glance

Texas has NO state income tax — one of nine states that don't tax wage income. This is a huge perk, but Texas makes up for it with above-average property taxes (effective rate ~1.6%, among the highest in the nation) and a 6.25% sales tax (plus up to 2% local).

How Texas's Tax Compares

Texas has a cost of living index of 93 (where 100 is the national average), putting it 7% below average. This means a $75,000 salary in Texas has the purchasing power of about $80,645 in an average-cost state.

Take-Home Pay by Salary in Texas

Here is the approximate Texas state tax on common salary levels for a single filer taking the standard deduction:

Annual Salary	State Effective Rate	Est. State Tax
$50,000	0%	$0
$75,000	0%	$0
$100,000	0%	$0
$150,000	0%	$0
$250,000	0%	$0

These are state-only estimates. Your paycheck also loses federal tax (10-37% progressive) and FICA (7.65%). Use our tax calculator pre-filled for Texas to see the full picture.

Largest Cities in Texas

Texas's population centers, each with their own local tax quirks, property tax rates, and cost of living:

Common Texas Deductions & Credits

Standard deduction — varies by state; most states mirror or reduce the federal amount
Retirement account contributions — 401(k), IRA, HSA typically deductible (check state conformity)
Charitable giving — if you itemize on state return
Mortgage interest — if itemizing
State-specific credits — earned income tax credits, child tax credits, property tax credits

Is Texas a Tax-Friendly State?

Yes — extremely. With no state income tax, wages earned in Texas go further than in any high-tax state. Just remember property tax and sales tax offsets.

Texas vs No-Tax States

If you earn $100,000 in Texas, your state tax is roughly $0. In Texas, Florida, or Washington, you would pay $0. Over 30 years of work, that difference compounds into a real retirement-size gap. But cost of living, property tax, and quality-of-life factors matter too — don't move just for the tax.

Frequently Asked Questions

Do I have to pay Texas income tax if I work remotely from another state?

Generally, you pay income tax to the state where you physically work, not where your employer is located. But Texas has specific nuances: some states use the "convenience of the employer" rule that taxes you if your home office is for your convenience rather than the employer's requirement. Consult a CPA for multi-state situations.

How is Texas state tax withheld from my paycheck?

Your employer estimates your annual Texas tax based on your W-4 equivalent (state withholding form), then withholds a portion of each paycheck. At year-end, you reconcile on your state return — owe more, or get a refund.

Does Texas tax retirement income?

It varies. Most states exempt Social Security benefits; fewer exempt 401(k) withdrawals or pensions. Check Texas Department of Revenue for current treatment of each income type.

Can I reduce my Texas state tax?

Yes — max out pre-tax 401(k) and HSA contributions (reduces both federal and state taxable income), and claim all state-specific credits. High earners may benefit from strategic Roth conversions in low-income years.