Texas Tax Guide 2026
Texas is one of only 9 states in the United States with NO state income tax. This means residents and businesses save significantly on taxes compared to high-tax states like California and New York.
🎉 States with No Income Tax (2026):
- Alaska
- Florida
- Nevada
- New Hampshire (wages only)
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
What Taxes DO You Pay in Texas?
While Texas has no state income tax, residents still pay:
- Federal Income Tax: Standard federal rates apply (10% - 37%)
- Federal Self-Employment Tax: 15.3% on net self-employment income
- Property Tax: Texas has one of the highest property tax rates in the US (~1.47% average)
- Sales Tax: 6.25% state sales tax + up to 2% local (total up to 8.25%)
How Texas Funds Government Without Income Tax
Texas compensates for the lack of income tax through:
- High Property Taxes: Among the highest in the nation
- Sales Tax Revenue: Significant consumer spending taxes
- Franchise Tax: Business tax (not applicable to individuals)
- Oil and Gas Revenue: Significant natural resource taxes
2026 Federal Tax Brackets (Applies to TX Residents)
| Tax Rate |
Single |
Married Filing Jointly |
| 10% | $0 - $12,400 | $0 - $24,800 |
| 12% | $12,401 - $49,500 | $24,801 - $99,000 |
| 22% | $49,501 - $105,400 | $99,001 - $210,800 |
| 24% | $105,401 - $201,150 | $210,801 - $402,300 |
| 32% | $201,151 - $255,425 | $402,301 - $510,850 |
| 35% | $255,426 - $640,600 | $510,851 - $768,700 |
| 37% | $640,601+ | $768,701+ |
Federal Standard Deduction 2026
- Single: $16,100
- Married Filing Jointly: $32,200
- Head of Household: $24,150
Pros and Cons of Living in Texas
Pros:
- No state income tax means more take-home pay
- Business-friendly environment
- Lower cost of living than coastal states
- No state estate or inheritance tax
Cons:
- Higher property taxes to compensate
- Sales tax on most purchases
- Less state funding for public services
Important: This calculator provides estimates for federal taxes only, as Texas has no state income tax. For complete tax planning, consult with a Texas CPA or tax professional familiar with property and sales tax implications.