Does Texas have a state income tax?

No. Texas has no state income tax and the Texas Constitution prohibits one. Texas residents pay $0 in state income tax on wages, salaries, investment income, or retirement distributions. Texas is one of nine states with no income tax, alongside Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire.

How much do I take home on a $75,000 salary in Texas?

On a $75,000 salary in Texas (single filer, 2026 standard deduction of $16,100, no other income), you pay $0 in state income tax. Your take-home after federal income tax (~$7,670), Social Security (6.2% = $4,650), and Medicare (1.45% = $1,088) is approximately $61,592 per year, or about $5,133/month. Texas property taxes add a meaningful amount for homeowners on top of this — confirm current average rates.

What taxes do Texas residents pay instead of income tax?

Texas funds state government primarily through property taxes and sales tax. The statewide sales tax is 6.25% (local additions bring most areas to around 8.25%). Texas has historically had one of the highest effective property tax rates in the US — confirm the current average rate, as this figure changes over time.

Is Texas better than California for taxes?

For most wage earners, Texas offers savings over California on income tax alone. However, Texas property taxes are considerably higher than California's on a percentage basis (partly due to California's Prop 13 assessment limits). The real savings depend on whether you rent (Texas is clearly better) or own high-value property (California's Prop 13 protections can narrow the gap for long-term homeowners).

Will Texas ever have an income tax?

Very unlikely in the near term. The Texas Constitution was amended in 2019 to make it even harder to impose a personal income tax — any new income tax would require approval by both the Legislature and a majority of voters in a statewide referendum.

Texas Income Tax Calculator 2026 — $0 State Tax: See Your Real Take-Home

Texas has no state income tax. Every dollar you earn from wages, salary, investments, or retirement accounts is yours — Texas does not collect a single cent of state income tax. Your take-home pay depends only on federal taxes, FICA, and any local deductions.

Quick answer: On a $75,000 Texas salary (single filer, 2026 standard deduction of $16,100), you keep approximately $61,592 after federal taxes and FICA — with $0 going to state income tax. That’s about $5,133/month take-home, before any 401(k) contributions or health insurance premiums.

Texas Take-Home Pay Table — Federal Taxes Only (Single, 2026)

Texas residents pay $0 state income tax. Table shows federal income tax (using 2026 brackets and the $16,100 standard deduction), Social Security (6.2%), and Medicare (1.45%). No other adjustments.

Gross Salary	Federal Income Tax	Social Security	Medicare	Total Federal + FICA	Texas Take-Home/Year
$30,000	$1,420	$1,860	$435	$3,715	$26,285
$40,000	$2,620	$2,480	$580	$5,680	$34,320
$50,000	$3,820	$3,100	$725	$7,645	$42,355
$60,000	$5,020	$3,720	$870	$9,610	$50,390
$70,000	$6,570	$4,340	$1,015	$11,925	$58,075
$75,000	$7,670	$4,650	$1,088	$13,408	$61,592
$80,000	$8,770	$4,960	$1,160	$14,890	$65,110
$90,000	$10,970	$5,580	$1,305	$17,855	$72,145
$100,000	$13,170	$6,200	$1,450	$20,820	$79,180
$120,000	$17,570	$7,440	$1,740	$26,750	$93,250
$150,000	$24,734	Confirm current SS wage base*	$2,175	Confirm	Confirm
$200,000	$36,734	Confirm current SS wage base*	$2,900	Confirm	Confirm
$300,000	$68,134	Confirm current SS wage base*	$4,350	Confirm	Confirm

The Social Security wage base for 2026 was not independently re-verified this session — confirm the current annual maximum with the Social Security Administration before relying on the capped SS tax figure for incomes above the wage base. Medicare has no wage cap; earners above $200,000 (single) pay an additional 0.9% Additional Medicare Tax. Federal income tax figures above use the confirmed 2026 brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and the $16,100 single standard deduction. Figures are approximate for single filers taking only the standard deduction with no other credits or adjustments.

Texas vs. High-Tax States: How Much More Do You Keep? (Illustrative)

A major reason people and businesses relocate to Texas is the income tax savings. Confirm current figures with each state’s dedicated guide before relying on precise dollar amounts, as several states’ rates changed for 2026:

State	State Tax on $100K (approx.)	Illustrative TX Savings
Texas	$0	—
California	~$5,200-$5,500 + SDI (1.3%)	Several thousand dollars/year
New York	~$4,950	~$4,950/year
New Jersey	Confirm current figure	Several thousand dollars/year
Illinois	~$4,800-$4,850	~$4,800/year
Oregon	~$8,100	~$8,100/year

Over a multi-year period, a high earner relocating from a high-tax state to Texas can save a substantial cumulative amount in state income tax alone — run the numbers for your specific state and income level using each state’s dedicated guide.

But Wait: Texas Property Tax

Texas makes up for the lack of income tax with high property taxes. This affects homeowners more than renters. Confirm the current average effective rate and typical dollar amounts with the Texas Comptroller or Tax Foundation, as these figures were not independently re-verified this session — see the Texas Property Tax Guide for more detail.

For renters: Texas’s income tax savings are largely unambiguous — you get the benefit without bearing the property tax burden directly.

Texas Homestead Exemption

Texas offers a homestead exemption from school district property taxes that significantly reduces the effective rate for primary residences — confirm the current exemption amount with your county appraisal district, as this has been increased by legislation in recent years. Additional exemptions are available for those 65+, disabled veterans, and surviving spouses.

Texas Sales Tax

Texas charges 6.25% state sales tax on most goods and services. Most cities and counties add local rates, with most populated areas at or near the 8.25% statutory maximum combined rate. Groceries and prescription drugs are exempt from sales tax in Texas.

Worked Examples (Illustrative)

Example 1: $70,000 salary — Texas vs. New York (single, upstate)

Item	Texas	New York (upstate)
Gross salary	$70,000	$70,000
State income tax	$0	~$3,245
Federal income tax	~$6,570	~$6,570
Social Security	$4,340	$4,340
Medicare	$1,015	$1,015
Annual take-home	~$58,075	~$54,830
TX advantage	~+$3,245/year	—

Example 2: $120,000 salary — Texas vs. California (single, renter)

Item	Texas	California
Gross salary	$120,000	$120,000
State income tax	$0	~$7,075
California SDI (1.3%)	$0	~$1,560
Federal income tax	~$17,570	~$17,570
Social Security	$7,440	$7,440
Medicare	$1,740	$1,740
Annual take-home	~$93,250	~$84,615
TX advantage	~+$8,635/year	—

How Texas Funds Its Government Without Income Tax

Texas state revenues come from:

Sales tax: a large share of state tax revenue
Property taxes: primarily county/city/school district revenue
Franchise tax (business): a tax on business revenues, not profits
Severance taxes: oil and gas production taxes (significant given TX energy sector)
Motor fuel taxes: confirm current per-gallon rate
Lottery: contributes to education funding

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy