Texas Income Tax
Figure basis: Official Texas Comptroller of Public AccountsTexas levies no state income tax on wages, salaries, or ordinary income. Residents owe no income tax at the state level, though federal income tax, Social Security, and Medicare payroll taxes still apply. Some states without an income tax offset revenue through higher sales or property taxes, so this page links to those calculators to help you build a complete picture of Texas's overall tax environment. If you recently relocated to Texas or are comparing states, use the sales tax and property tax tools below alongside the federal income tax calculator to assess your full tax burden. This page is sourced from Texas Comptroller of Public Accounts and reflects current Texas tax law.
Texas has no state income tax. Texas has no state individual income tax. The Texas Constitution (Article 8, Section 24-a) prohibits the legislature from imposing a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income. Texas funds state government primarily through sales and use taxes and the franchise (margins) tax on businesses. Texas property taxes are levied by local governments (school districts, counties, and cities), not by the state.
Texas has no income tax
Texas has no state individual income tax. The Texas Constitution (Article 8, Section 24-a) prohibits the legislature from imposing a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income. Texas funds state government primarily through sales and use taxes and the franchise (margins) tax on businesses. Texas property taxes are levied by local governments (school districts, counties, and cities), not by the state. For residents, wages, salaries and investment income are not subject to state income tax in Texas.
The trade-off behind Texas's zero income tax
Texas is one of only nine states with no individual income tax, and it is the most populous of them, which makes its policy nationally significant. What sets Texas apart is not just the absence of the tax but how firmly it is locked in place. The 1993 Bullock Amendment allowed an income tax only with statewide voter approval; the 2019 amendment (Proposition 4, now Article 8, Section 24-a) went further and banned one outright. Undoing that ban would require a two-thirds vote in both chambers of the legislature plus a majority of voters at the ballot box, so a Texas income tax is a remote prospect.
The revenue still has to come from somewhere. Texas leans on sales tax, 6.25 percent at the state level and up to 8.25 percent once local jurisdictions add their share, and on local property taxes that rank among the highest effective rates in the country. A homeowner with a $400,000 house can pay more each year in property tax than a resident of a neighboring state pays in income tax, so "no income tax" does not automatically mean a lighter total burden.
For workers the exemption is broad: wages, salaries, bonuses, capital gains, retirement withdrawals, and Social Security all escape state tax in Texas. The single figure on this page is zero, and for relocating retirees and remote employees that is often the deciding number.
Texas income tax: frequently asked questions
Does Texas have a state income tax?
No. Texas has no state individual income tax. The Texas Constitution (Article 8, Section 24-a) prohibits the legislature from imposing a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income. Texas funds state government primarily through sales and use taxes and the franchise (margins) tax on businesses. Texas property taxes are levied by local governments (school districts, counties, and cities), not by the state.
Do I need to file a Texas state income tax return?
Texas does not collect a personal income tax, so there is no state income tax return to file. You still need to file a federal return with the IRS.
Does Texas have a state income tax?
No. Texas has no state individual income tax. The Texas Constitution (Article 8, Section 24-a) expressly prohibits the legislature from imposing a tax on the net incomes of individuals. Texas funds state government primarily through sales taxes, the franchise (margins) tax on businesses, and property taxes.
Will Texas ever have an income tax?
Any future individual income tax would require a constitutional amendment, which must be passed by two-thirds of both chambers of the Texas legislature and then approved by a majority of Texas voters in a statewide referendum. Voters amended the constitution in 2019 to strengthen the prohibition, making an income tax even harder to introduce.
What taxes do Texas residents pay instead of income tax?
Texas residents pay no state income tax, but they do pay state and local sales tax (combined rates typically range from 6.25 percent to 8.25 percent), local property taxes, and various excise and use taxes administered by the Texas Comptroller.
Official sources
- Texas no income tax confirmation: Texas Comptroller of Public Accounts, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.