Texas variant. This is a Texas-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.
Texas income tax (No state income tax (constitutional ban)) stacks on top of federal tax. Understanding both layers is essential to estimating your total Texas tax bill.
Texas state income tax structure
Texas imposes no state income tax on wages, so your income tax is entirely federal. This is a major draw for high earners and retirees.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Texas rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Texas
Texas has a constitutional ban on a state personal income tax, relying instead on sales and property taxes.
Texas offsets the lack of an income tax with relatively high property taxes near 1.68%, while median home values are around $305,000.
Texas has one of the largest state economies in the nation, led by energy, technology, manufacturing, and trade.
Worked example: state tax on $75,780
Texas state income tax on $75,780 is $0 - only federal income tax and FICA apply.
Quick reference
- State income tax: No state income tax (constitutional ban)
- State sales tax: 6.25% (plus 1.95% avg local)
- Median home value: $305,000
- Median household income: $75,780
- Effective property tax rate: 1.68%
- Avg auto insurance: $2,018/yr
Frequently Asked Questions
Does Texas have state income tax?
No, Texas has no state income tax on wages.
What is the top tax rate in Texas?
Texas has no state income tax.