⭐
State Tax Guide 2026
Texas Tax Guide
Texas has no state income tax— one of only 9 states. But the state makes up revenue through high property taxes (averaging 1.7% of assessed value) and an 8.25% sales tax. Here's the full picture for 2026.
0%
Income Tax
8.25%
Sales Tax (max)
1.7%
Avg Property Tax
0%
Corporate Tax
✅ No State Income Tax in Texas
The Texas Constitution prohibits a personal state income tax. This saves Texans thousands annually compared to high-tax states.
$75,000 income
Save ~$3,750/yr vs avg state
$150,000 income
Save ~$7,500/yr vs avg state
$300,000 income
Save ~$15,000/yr vs CA
🔢 Free Texas Tax Calculators
Texas Paycheck Calculator
Net pay after federal taxes and FICA — no state withholding.
Texas Take-Home Pay Calculator
Annual take-home with zero state income tax.
Texas Property Tax Calculator
Estimate your annual TX property tax by county.
Texas Self-Employment Tax Calculator
Federal SE tax with no TX state tax on top.
Texas Bonus Tax Calculator
How your Texas bonus is taxed (federal only).
Texas Property Tax 2026
Texas has some of the highest property taxes in the nation. Rates vary by county and city, averaging around 1.7% of assessed value annually.
| Metro Area | Effective Rate | Tax on $350K Home |
|---|---|---|
| Dallas–Fort Worth | 2.0% | $7,000 |
| Houston (Harris County) | 1.8% | $6,300 |
| San Antonio (Bexar) | 1.7% | $5,950 |
| Austin (Travis County) | 1.9% | $6,650 |
| El Paso | 2.0% | $7,000 |
Homestead Exemption: Texas offers a $100,000 homestead exemption from school taxes (increased in 2023). Seniors 65+ get an additional $10,000 exemption and a tax ceiling on their primary residence.
Texas Sales Tax 2026
Texas charges a 6.25% state sales tax. Cities, counties, and special districts can add up to 2%, bringing the maximum total to 8.25%.
| City | State | Local | Total |
|---|---|---|---|
| Houston | 6.25% | 2.0% | 8.25% |
| Dallas | 6.25% | 2.0% | 8.25% |
| San Antonio | 6.25% | 2.0% | 8.25% |
| Austin | 6.25% | 2.0% | 8.25% |
| Fort Worth | 6.25% | 2.0% | 8.25% |
| El Paso | 6.25% | 2.125% | 8.375% |
Texas vs. Federal Tax: Key Facts
✓
No State Income Tax Return
Texas residents file only a federal 1040 — no state return required.
✓
Federal Taxes Still Apply
You still pay federal income tax (10%–37%), Social Security (6.2%), and Medicare (1.45%).
✓
No State Capital Gains Tax
Texas does not tax capital gains at the state level.
✓
No State Estate Tax
Texas has no state estate or inheritance tax.
✓
Franchise Tax (Business)
Businesses pay a franchise tax (0.375%–0.75% of revenue), but this doesn't affect W-2 workers.
See Your Texas Take-Home Pay
No state income tax means more in your pocket. Calculate your exact net pay.
Open Texas Paycheck Calculator →