No state income tax - constitutionally prohibited since 1993
Texas has no state income tax, constitutionally prohibited since 1993. At $100,000 income, residents pay only $12,908 federal tax with zero state tax burden. Texas ranks among 9 US states with no income tax, making it one of the most tax-friendly for workers, retirees, and business owners seeking to maximize take-home pay.
Texas has no state income tax, a policy constitutionally protected since 1993. Any attempt to introduce an income tax would require approval by Texas voters via statewide referendum, making it highly unlikely to change.
Why no income tax? Texas relies on other revenue sources including property tax (1.6% average, among highest in US), sales tax (6.25% state + up to 2% local), oil and gas severance taxes, and business franchise taxes. This "Texas Model" attracts businesses and high-income individuals fleeing high-tax states.
How it compares:
Recent changes: In 2021, Texas legislators proposed a constitutional amendment to permanently ban future income taxes, reinforcing existing protections. Property tax reform remains a hot topic, with efforts to cap annual increases.
Source: Texas Comptroller of Public Accounts - Tax Information
Here's what Texas residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $0 | $4,166 | $45,834 | 8.3% |
| $75,000 | $8,340 | $0 | $8,340 | $66,660 | 11.1% |
| $100,000 | $12,908 | $0 | $12,908 | $87,092 | 12.9% |
| $150,000 | $25,218 | $0 | $25,218 | $124,782 | 16.8% |
| $250,000 | $54,094 | $0 | $54,094 | $195,906 | 21.6% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Texas takes $0 in state tax alone.
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Planning a move to or from Texas? Multi-state filing is complex. Get matched with a CPA who handles Texas taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Texas experienced net immigration of 230,961 residents, making it the #1 destination state. Top origin states were:
Why people move to Texas:
Why people leave or avoid Texas:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Texas |
|---|---|---|---|
| Texas | 0% | $0 | Baseline |
| Louisiana | 1.85-4.25% | $2,850 | +$2,850 (more tax) |
| Oklahoma | 0.25-4.75% | $3,275 | +$3,275 (more tax) |
| New Mexico | 1.7-5.9% | $3,890 | +$3,890 (more tax) |
Key insight: Texas saves residents $2,850-$3,890/year at $100K income compared to neighboring states with income tax. Compared to California, savings are $5,762/year at $100K, $10,991/year at $150K, and over $22,000/year at $250K.
But consider property taxes:
Bottom line: Texas is most advantageous for high-income renters or those buying modestly-priced homes. Property owners in expensive homes see smaller net savings.
No, Texas has no state income tax. This policy is constitutionally protected since 1993 - any future income tax would require approval by Texas voters via statewide referendum. Residents pay only federal income tax (10-37% based on income). Texas is one of only 9 US states with no income tax.
Texas generates revenue through property tax (1.6% average, among highest in US), sales tax (6.25% state + up to 2% local), oil and gas severance taxes, business franchise tax (0.375-0.75% on gross receipts), and federal funding. This diversified model has worked since statehood in 1845.
At $100K income: save $5,762/year in state income tax. At $150K: save $10,991/year. At $250K: save $22,471/year. However, Texas property tax is higher (1.6% vs 0.74%), so homeowners with expensive properties see smaller net savings. Renters and high earners benefit most from Texas's no-income-tax policy.
Texas property tax averages 1.6% of home value annually, among the highest in the US. On a $400K home, that's $6,400/year. California averages 0.74% ($2,960/year on same home). Texas relies heavily on property tax to fund schools and local services since it has no income tax. Rates vary by county (Houston area ~2.5%, Austin ~2.1%).
Move if: you're a high earner ($150K+), rent or buy modestly-priced homes, work remotely or in tech/energy, and value low taxes over California's weather/culture. Stay where you are if: you own an expensive home (property tax will eat into savings), prefer public lands/outdoor recreation (98% of Texas is private), can't handle 100°F+ summers, or your industry is based elsewhere.
How we calculate: Since Texas has no state income tax, our calculator shows only federal income tax using official 2026 IRS tax brackets. We apply marginal tax rates correctly, subtract the standard deduction ($15,000 for single filers in 2026), and calculate effective tax rates. For comparison purposes, we show property tax averages and sales tax rates.
Data sources:
Verification: Texas constitutional prohibition of income tax verified against Texas Constitution Article VIII, Section 24 (added 1993). Property tax averages calculated from Texas Comptroller's Property Tax Assistance Division data as of March 17, 2026. Federal tax calculator accuracy: 99%+ for standard W-2 filers.
Limitations: Assumes single filer, standard deduction, W-2 income only. Does not include: itemized deductions, federal tax credits (EITC, child tax credit), self-employment tax, business franchise tax implications. Property tax rates shown are statewide averages; actual rates vary significantly by county (range: 0.7% to 2.5%).
For complex situations: Consult a licensed CPA familiar with Texas tax law, or use official IRS tax software for federal calculations.
These calculations are estimates for informational purposes only and reflect federal income tax since Texas has no state income tax. Tax situations vary based on filing status, deductions, credits, and income types. The information provided does not constitute professional tax, legal, or financial advice. Federal tax laws change frequently. While we strive for accuracy and update our calculators regularly, always verify current federal rates with the IRS and consult a licensed tax professional for advice specific to your situation. Property tax comparisons are based on statewide averages and actual rates vary by county.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026