Income Tax for Texas (2026)

How This Calculator Works in Texas

This calculator confirms that Texas has no state income tax and helps you compare your overall tax situation with neighboring states. It can help you understand the tax savings of living in a no-income-tax state.

Texas Overview

Texas imposes no personal income tax, a protection enshrined in the state constitution and strengthened by a 2019 amendment. The state funds itself through sales taxes (6.25% state rate), some of the nation's highest property taxes (~1.8% average effective rate), and oil and gas severance taxes. This tax structure attracts significant domestic migration but means homeowners bear a heavier burden than in most other states.

How Texas Compares

Texas's top income tax rate of 0% compares to Louisiana at 4.25% and Oklahoma at 4.75%. The absence of income tax makes it one of the most favorable states for high earners.

Texas's income tax rate of 0% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Texas Residents

• 1Texas has no personal income tax, a provision written into the state constitution — it would require a voter-approved constitutional amendment to ever impose one.
• 2Texas property taxes are among the highest in the nation, averaging about 1.8% of home value, which is how the state offsets the lack of income tax revenue.
• 3The state imposes a franchise tax (margin tax) on businesses with revenue over $2.47 million, at rates of 0.375% for retail/wholesale and 0.75% for other industries.
• 4Texas has a 6.25% state sales tax, with local entities adding up to 2%, for a maximum combined rate of 8.25% — this is a major revenue source.
• 5If you are self-employed or own a business, plan carefully for the franchise tax. LLCs, partnerships, and corporations are all subject to it if they exceed the revenue threshold.

Frequently Asked Questions