Texas Income Tax Calculator 2026
Texas does not levy a state income tax. The 2026 calculator below applies only federal IRS brackets and FICA, giving you a clean view of your real take-home in the Lone Star State.
TL;DR
Texas has no state income tax - your paycheck loses only federal tax and FICA. A $100,000 Texas salary nets roughly $6,500 more per year than the same job in California, and about $4,500 more than the same job in New York.
How Texas state income tax works (2026 overview)
Texas is one of nine US states with no personal income tax. The Texas Constitution (Article VIII, Section 24, added in 1993) requires statewide voter approval to introduce a personal income tax, and 2019's Proposition 4 raised the bar further: a future repeal of Section 24 would itself need a constitutional amendment passed by 2/3 of the legislature and approved by voters. As a practical matter, Texas income tax remains politically impossible.
Because there is no state income tax, the Texas Comptroller does not collect any personal income-tax filings from individuals. Wage earners pay only federal income tax (via paycheck withholding using Form W-4) and FICA. There is no state W-4 equivalent and no state tax return to file each April.
Texas funds public services through three main channels: sales tax (state 6.25% + up to 2% local, capped at 8.25% combined), property tax (one of the highest effective rates in the country at roughly 1.6%-1.9% in major metros, with no statewide cap and no homestead exemption equivalent to Florida's), and a franchise tax on businesses with revenue above $2.47 million in 2024. The state does NOT tax Social Security, retirement distributions, capital gains, or dividends at the personal level.
The 'no state income tax' benefit is partially offset by Texas's high property tax. A homeowner with a $400,000 house in suburban Austin, Dallas or Houston typically pays $7,000-$9,000 in annual property tax - comparable to the state income tax they would owe in a similar income-tax state. Renters benefit more from Texas's tax structure than homeowners do.
Texas state income tax: $0
Texas is one of nine US states that does not levy a personal income tax. Your paycheck is reduced only by federal income tax and FICA (Social Security + Medicare). At a $100,000 Texas salary you pocket roughly $5,500-$6,500 more per year compared to California, and about $4,000-$4,500 more than New York.
Because there is no state income tax, residents do not file a state return for wages. Texas still funds public services through other channels (property tax, sales tax, business tax, severance tax or tourism revenue depending on the state). The flip side: those alternative taxes are often higher than in income-tax states, so the real-world saving depends on your spending and housing pattern, not just your salary.
Texas take-home pay calculator
Enter your annual gross salary and filing status. The calculator runs federal 2026 brackets + Texas state rules + FICA in your browser - nothing leaves the page.
Estimate only. Uses 2026 IRS brackets and Texas state rules. Does not include local city tax, retirement deductions, or pre-tax health insurance.
Texas take-home examples at common salary levels (2026, single filer)
Here is what a single filer keeps after federal income tax and FICA at five common salary levels in 2026, with Texas's zero state income tax baked in. All numbers assume only the federal standard deduction and no retirement contributions or pre-tax health premiums.
| Gross salary | Federal tax | Texas state tax | FICA | Take-home | Effective rate |
|---|---|---|---|---|---|
| $50,000 | $3,968 | $0 | $3,825 | $42,207 | 15.6% |
| $75,000 | $8,253 | $0 | $5,738 | $61,010 | 18.7% |
| $100,000 | $13,753 | $0 | $7,650 | $78,597 | 21.4% |
| $150,000 | $25,442 | $0 | $11,475 | $113,082 | 24.6% |
| $250,000 | $52,886 | $0 | $14,543 | $182,570 | 27.0% |
FICA = 6.2% Social Security on the first $176,100 of wages plus 1.45% Medicare on all wages. Married-filing-jointly numbers are roughly 5-8% lower at every income level because the federal brackets are nearly twice as wide and federal standard deduction doubles.
How Texas compares to neighbors (Oklahoma, New Mexico, Louisiana, Arkansas)
Same scenario for every state: $75,000 gross annual salary, single filer, no other deductions, 2026 federal brackets, $15,000 standard deduction. The only difference is the state tax line.
| State | Effective state rate | State tax at $75k | Take-home after all taxes |
|---|---|---|---|
| Texas (this state) | 0% | $0 | $61,010 |
| Oklahoma | 4.10% | $3,075 | $57,934 |
| New Mexico | 4.30% | $3,225 | $57,784 |
| Louisiana | 3.00% | $2,250 | $58,760 |
| Arkansas | 3.90% | $2,925 | $58,084 |
Effective state rate = state income tax divided by gross income. Federal tax ($8,253) and FICA ($5,738) are identical across all states.
Texas tax-planning checklist for 2026
- Maximize property-tax savings. Texas's high property tax (often $7,000-$15,000+ on a moderate home in Austin, Dallas or Houston) is the offset to no income tax. Apply for the homestead exemption ($100,000 off the school district portion of taxable value as of 2023), the 10% appraisal cap for homestead properties, and any over-65 or disabled-veteran exemptions you qualify for.
- Maximize pre-tax 401(k) and HSA contributions for federal-only savings. Without state tax to reduce, the federal savings are still substantial - a $23,500 401(k) contribution saves around $5,640 in federal tax at the 24% bracket, plus eliminates the 7.65% FICA Medicare portion (FICA Social Security is still owed but capped). Texas does not tax 401(k) growth or withdrawals either.
- Time interstate moves carefully. If you're moving to Texas from a high-tax state (California, New York) for tax purposes, plan to take any deferred compensation, RSU vesting, or option exercise AFTER establishing Texas residency. Some states (New York, California) have non-resident sourcing rules that can still tax income earned while you were a former resident.
- Set up a Texas LLC or s-corp for self-employment income. Below the $2.47M franchise tax threshold, you pay no Texas tax on business income. The state's lack of personal income tax makes Texas one of the best states in the country for self-employed earners.
- Use a Roth IRA aggressively. With no state tax on traditional 401(k)/IRA withdrawals in retirement and no state tax on Roth growth either, the traditional-vs-Roth math comes down to federal rates only - typically favoring Roth for current low/mid earners.
- Check homestead protection rules. Texas has some of the strongest creditor-protection laws in the country - your homestead is generally protected from most creditors (other than mortgage, property tax, and federal tax debt). This makes Texas attractive for high-risk professionals.
Frequently asked questions about Texas income tax
Does Texas have a state income tax?
No. Texas is one of nine US states with no personal income tax. The Texas Constitution (Article VIII, Section 24) requires voter approval to ever introduce one. Texans pay only federal income tax and FICA out of wages.
What taxes does Texas have instead of income tax?
Texas funds public services primarily through sales tax (state 6.25% + up to 2% local = max 8.25%) and one of the highest property tax burdens in the country (effective rate around 1.6% of home value, no statewide cap). Texas also has franchise tax on businesses with revenue above $2.47M.
How much do I save by living in Texas vs California?
On a $100,000 salary, a Texas resident saves roughly $5,500-$6,500 per year vs California at the same gross pay, after accounting for California's 1%-9.3% state tax brackets and SDI. The gap widens as income rises - over $500k, savings exceed $40k per year.
Do remote workers living in Texas pay income tax to their employer's state?
It depends on the employer state's rules. New York, Pennsylvania, Delaware, Nebraska and a few others use the 'convenience of the employer' rule, which can tax a Texas-based remote worker on income from a New York employer. Most other states (including California after Bindley v. CDTFA) tax remote workers only when work is physically performed there.
Is my 401(k) withdrawal taxed in Texas?
Not at the state level - Texas does not tax 401(k), IRA, pension, or Social Security income. You still owe federal income tax on traditional (pre-tax) 401(k) withdrawals at your federal marginal rate.
What's the catch with no state income tax in Texas?
Texas makes up for the missing income tax with property tax (effective ~1.6%-1.9% in major metros, well above the US average of ~1%) and sales tax (8.25% in most cities). If you own a $400k home, you pay $6,400+ per year in property tax - similar to the state income tax you'd owe in an income-tax state.
Does Texas tax investment income or capital gains?
No state tax on dividends, interest or capital gains. Federal tax still applies (0%/15%/20% long-term capital gains, ordinary rates for short-term). This is a significant advantage for investors, retirees, and FIRE-track earners.
Is Texas tax-free for crypto and gambling winnings?
At the state level, yes - Texas does not tax crypto sales, mining rewards, gambling winnings, or lottery prizes. Federal tax (ordinary income rates for short-term gains and gambling winnings, capital gains rates for long-term crypto holdings) still applies.
Do I need to file a Texas state tax return for wages?
No. There is no state-level personal tax return for wages in Texas. You still file a federal 1040 with the IRS, and any business income may trigger Texas franchise tax if revenue exceeds $2.47M.
Will Texas ever introduce a state income tax?
Extremely unlikely in the near term. Article VIII, Section 24 of the Texas Constitution requires a statewide voter referendum to introduce a personal income tax, and the most recent 2019 ballot measure (Proposition 4) made it even harder by requiring a future voter-approved constitutional amendment to repeal Section 24 itself.
Key terms used on this page
- Marginal tax rate
- The tax rate applied to your last dollar of taxable income - your bracket. If you earn $90,000 in Texas and the rate that applies to your last dollar is 5.85%, your marginal rate is 5.85%, even though most of your income is taxed at lower rates.
- Effective tax rate
- Your total tax divided by your gross income, expressed as a percentage. Because lower brackets tax earlier dollars at lower rates, your effective rate is always less than your marginal rate in progressive states. In a flat-tax state, marginal and effective rates are usually very close (offset only by deductions and exemptions).
- Standard deduction
- A fixed amount you subtract from gross income before calculating tax. For 2026 federal returns, the standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household. Many states (including Texas if it offers one) have separate state standard deductions at different amounts.
- FICA (Social Security + Medicare)
- The federal payroll tax that funds Social Security and Medicare. As an employee, you pay 6.2% Social Security on the first $176,100 of 2026 wages plus 1.45% Medicare on all wages. Self-employed earners pay both halves (15.3% total) but can deduct half on their federal return.
- Withholding
- The tax your employer takes out of each paycheck and remits to the IRS and your state on your behalf. Adjusted via the federal Form W-4 (federal) and your state's W-4 equivalent. Over-withholding produces a refund; under-withholding produces an April bill (and possibly a penalty).
- Filing status
- Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), Head of Household (HoH), or Qualifying Widow(er). Determines which bracket schedule applies and the size of your standard deduction. Most married couples should compare MFJ vs MFS each year - MFS is occasionally better when one spouse has high medical expenses or unreimbursed business losses.
- Tax credit vs deduction
- A deduction reduces your taxable income (saves you tax = deduction x marginal rate). A credit reduces your tax dollar-for-dollar (saves you tax = credit amount). A $1,000 credit is worth more than a $1,000 deduction at the same income level.
Methodology and sources
Federal brackets: The 2026 federal income tax brackets used by the calculator (10%, 12%, 22%, 24%, 32%, 35%, 37% with single thresholds of $11,600, $47,150, $100,525, $191,950, $243,700, $609,350) are from the IRS Revenue Procedure published for tax year 2026, adjusted from 2025 for inflation. The 2026 federal standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household.
State rules: Texas does not levy a state income tax, so the calculator above only models federal tax and FICA. There is no Texas state authority to cite for income-tax rules because there are none.
FICA: Social Security wage base of $176,100 for 2026 (taxed at 6.2%) and Medicare tax of 1.45% on all wages. The Additional Medicare Tax (0.9%) on wages above $200,000 single / $250,000 joint is NOT modeled in the calculator above - it applies to high earners and would shave a small amount off the displayed take-home at those levels.
What the calculator does NOT model:
- Local city, county, or school district income tax (relevant in OH, PA, MI, NY-NYC, MD, AL among others)
- Pre-tax 401(k), 403(b), 457(b), HSA, and FSA contributions (each would reduce both federal AND state taxable income)
- Pre-tax health, dental, and vision insurance premiums
- State-specific credits (EITC, dependent care, retirement income exclusion, etc.)
- Itemized deductions for taxpayers who itemize instead of taking the standard deduction
- The federal Additional Medicare Tax (0.9%) on high earners
- The federal Net Investment Income Tax (3.8%) on investment income for high earners
- Alternative Minimum Tax (AMT) at the federal or state level
Limitations: The calculator is an estimate, not tax advice. For any decision with material financial consequences, consult a qualified tax professional licensed in Texas. Tax rules change frequently - this page reflects rules as of the date below.
Page generated by 3Tej's state-tax page builder. Last updated 2026. Rules current as of January 2026 - check the official Texas Department of Revenue website (or your state equivalent) for any changes during the tax year.