Houston, TX variant. This is a Houston, TX-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Income tax in Houston combines federal, TX state, and no city income tax.
Layers of income tax in Houston
Houston levies no local income tax, so your bill is federal + TX state only.
Combine all layers to find your true marginal rate on the next dollar earned.
About Houston, TX
Houston residents pay no state or city income tax, since Texas does not impose a personal income tax, leaving more take-home pay relative to many large cities.
Houston has comparatively affordable home prices and rents, supported by ample land and the city's notable lack of formal zoning laws.
Houston's economy is heavily tied to the energy industry, alongside major medical, aerospace, and shipping sectors.
Worked example: local tax on $62,894
No city income tax applies in Houston; only TX state and federal tax do.
Quick reference
- Median home value: $270,000
- Median rent: $1,700/mo
- Median household income: $62,894
- Local sales tax: 8.25%
- Effective property tax rate: 2.31%
- Cost of living index: 97 (US avg = 100)
Frequently Asked Questions
Does Houston have a local income tax?
No local income tax in Houston.
What taxes apply to Houston residents?
Federal, TX state.