Texas has no state income tax, making it one of the most crypto-friendly states for investors and traders. You only owe federal capital gains tax on your crypto profits — no additional state tax on Bitcoin, Ethereum, or any other cryptocurrency gains. Below we break down the federal rates that apply to Texas residents, walk through example scenarios with real numbers, and compare your tax savings versus high-tax states like California and New York.
Single filer, standard deduction, 2026 tax year. Includes 3.8% NIIT above $200K.
| Gain | Short-Term Tax | ST Eff. Rate | Long-Term Tax | LT Eff. Rate |
|---|---|---|---|---|
| $5,000 | $500 | 10.0% | $0 | 0.0% |
| $10,000 | $1,000 | 10.0% | $0 | 0.0% |
| $25,000 | $2,762 | 11.0% | $0 | 0.0% |
| $50,000 | $5,914 | 11.8% | $248 | 0.5% |
| $100,000 | $16,914 | 16.9% | $7,748 | 7.7% |
| $250,000 | $66,563 | 26.6% | $39,748 | 15.9% |
| $500,000 | $163,547 | 32.7% | $86,748 | 17.3% |
State tax column is $0 for all rows — Texas has no state income tax. Only federal taxes apply.
Because Texas has no state income tax, you save significantly on crypto taxes compared to residents of high-tax states. On a $50,000 crypto gain, here is how Texas compares:
On $50,000 in crypto gains, a Texas resident saves $1,245 vs. California and $2,145 vs. New York in state taxes alone.
Texas has no state income tax — self-employed, W-2, and retirees all benefit from keeping 100% of state-level income.
Texas sales tax is 6.25% plus local additions (up to 2%), for a combined max of 8.25%.
No state income tax means no state-level deduction for mortgage interest — but federal deductions still apply.
Texas franchise tax (margin tax) applies to businesses with revenue over $2.47M — most small businesses are exempt.
No state income tax. Among the highest property tax rates in the US.
Housing economics in Texas. The median home value runs 4.7% above the U.S. baseline for Texas is $375,000 per Zillow's home-value index. Effective property tax sits at 1.75% of assessed value, meaningfully higher than the 0.99% national average tracked by the Tax Foundation.
Income and tax climate. Texas's top marginal state income tax bracket lands at 0.00% — one of nine states that levies no broad-based income tax, shifting the revenue burden onto sales, property, and severance levies. State sales tax sits at 6.25% before local add-ons; combined rates in metro areas frequently push 1-3 percentage points higher. BEA's Regional Price Parity scores Texas at 95.0 (national = 100), meaning a dollar in Texas buys 105¢ — more goods and services than the same dollar nationally.
How Texas's tax structure plugs into the calculator. Federal brackets are the same in every state, but the state-level overlay changes the marginal and effective rates that actually leave your paycheck. The income tax, paycheck, capital gains, and self-employment calculators all factor Texas's top marginal rate, standard deduction, and (where applicable) local payroll levies into the take-home math. Sales tax surfaces in cost-of-living comparisons rather than in income calculators. Property tax shows up only on real-estate calculators. Each calculator on this page uses the Texas numbers above where the rule applies and federal-default values everywhere else.
Local context as of 2026-05-28. Live data sources are listed in the Sources section below; each metric carries its own retrieval date.
How does Texas stack up against the national average on the metrics that drive the calculators on this page? The table below pairs the Texas-specific reading against the U.S. baseline so you can see at a glance whether your local scenario runs above or below typical. Three to five percentage points of difference on most of these inputs translates into meaningful changes in calculator output — for example, a 50-basis-point difference in mortgage rate moves the monthly payment on a $400,000 30-year loan by roughly $130.
| Metric | Texas | U.S. baseline | Difference |
|---|---|---|---|
| Median home value[zillow] | $375,000 | $358,000 | 4.7% |
| Property tax rate (effective)[tax-foundation] | 1.75% | 0.99% | 76.8% |
| Top marginal state income tax[tax-foundation] | None | ~4.08% (volume-weighted) | −4.08 pp |
| Cost-of-living index (RPP)[bea-rpp] | 95.0 | 100.0 | -5.0 pts |
Walk through estimating your federal + Texas crypto capital-gains liability with state-specific defaults pre-loaded.
Texas has no state income tax, so crypto gains are not taxed at the state level. You still owe federal capital gains tax on crypto profits. This makes Texas one of the most crypto-friendly states for tax purposes.
Texas has no state income tax, so the crypto tax rate is 0% at the state level. Federal rates still apply: 0-20% for long-term gains (held over 1 year), or 10-37% for short-term gains (held under 1 year), plus a potential 3.8% Net Investment Income Tax.
Mining and staking rewards are taxed as ordinary income at the federal level when received. Since Texas has no income tax, there is no additional state tax. The fair market value at the time of receipt is your taxable amount and cost basis.
All U.S. taxpayers, including Texas residents, must report crypto transactions on federal Form 8949 and Schedule D. Starting in 2025, crypto exchanges must issue 1099-DA forms for dispositions. Since Texas has no income tax, there are no additional state reporting requirements for crypto. Keep detailed records of all transactions including dates, amounts, and fair market values.
This guide combines three inputs: (1) IRS federal capital gains tax rules (Publication 17 / 550); (2) Texas state income tax brackets for 2026from the state's Department of Revenue and the Tax Foundation; and (3) scenario examples computed client-side using the same formulas as our crypto tax calculator. All numbers on this page reference primary public datasets listed below[1][2][3].
Refresh cadence: federal capital gains brackets and NIIT thresholds are reviewed each year after IRS annual inflation adjustments publish (typically October/November). Texas's state income tax brackets are reviewed annually after the legislative session closes. Page-level dateModified bumps on the next ISR refresh after an ETL run.
Known limits: scenarios assume single-filer status with standard deduction, US residency, no AMT exposure, and no local income taxes (NYC, Philadelphia, etc.). Staking and mining scenarios use ordinary-income rates at receipt and assume no subsequent appreciation between receipt and sale. For complex situations consult a tax professional or CPA.
Every number on this page cites a primary public dataset. Last reviewed (auto-bumped on the next ISR refresh after an ETL run).
CalcFi does not sell data. If you spot an error, email hello@calcfi.app with the URL and the correct figure.
Tax calculations use 2026 federal rates and Texas state brackets. Single filer, standard deduction assumed. Does not include local taxes, AMT, credits, or deductions beyond standard. Staking/mining scenarios use ordinary income rates. Consult a tax professional for personalized advice. Last reviewed .