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, standard deduction, no other income), you pay $0 in state income tax. Your take-home after federal income tax (~$10,294), Social Security (6.2% = $4,650), and Medicare (1.45% = $1,088) is approximately $58,968 per year, or about $4,914/month. Texas property taxes add an average of $3,400–$5,000/year for homeowners.

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 8.25%). Texas has the 6th-highest effective property tax rate in the US at about 1.6% of home value — on a $350,000 home, that's roughly $5,600/year. There is no state income tax to offset this.

Is Texas better than California for taxes?

For most wage earners, Texas offers significant savings over California. A single earner at $100,000 saves approximately $6,300–$7,400 per year in state income tax (California charges ~$5,215 state income tax + $1,100 SDI). However, Texas property taxes are considerably higher — California's property tax is typically 1.1%–1.2% vs. Texas's 1.6%–2.2%. 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's political culture strongly opposes income taxation, making this a very remote possibility.

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, standard deduction), you keep approximately $58,968 after federal taxes and FICA — with $0 going to state income tax. That’s about $4,900/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, Social Security (6.2%), and Medicare (1.45%). Standard federal deduction ($15,000). No other adjustments.

Gross Salary	Federal Income Tax	Social Security	Medicare	Total Federal + FICA	Texas Take-Home/Year	Monthly Take-Home
$30,000	$1,500	$1,860	$435	$3,795	$26,205	$2,184
$40,000	$2,954	$2,480	$580	$6,014	$33,986	$2,832
$50,000	$4,454	$3,100	$725	$8,279	$41,721	$3,477
$60,000	$5,954	$3,720	$870	$10,544	$49,456	$4,121
$70,000	$7,854	$4,340	$1,015	$13,209	$56,791	$4,733
$75,000	$8,804	$4,650	$1,088	$14,542	$60,458	$5,038
$80,000	$9,754	$4,960	$1,160	$15,874	$64,126	$5,344
$90,000	$11,654	$5,580	$1,305	$18,539	$71,461	$5,955
$100,000	$13,954	$6,200	$1,450	$21,604	$78,396	$6,533
$120,000	$18,954	$7,440	$1,740	$28,134	$91,866	$7,656
$150,000	$25,454	$9,114*	$2,175	$36,743	$113,257	$9,438
$200,000	$36,954	$10,918*	$2,900	$50,772	$149,228	$12,436
$300,000	$65,154	$10,918*	$4,350	$80,422	$219,578	$18,298

Social Security wage cap is $176,100 in 2026 — maximum SS tax is $10,918. Medicare has no cap; earners above $200K pay an additional 0.9% Medicare surtax (Additional Medicare Tax). Federal income tax uses 2026 brackets (10%, 12%, 22%, 24%, 32%, 35%). Figures are approximate for single filers taking only the standard deduction.

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

A major reason people and businesses relocate to Texas is the income tax savings:

State	State Tax on $100K	Your Extra TX Savings
Texas	$0	—
California	$5,215 + $1,100 SDI	$6,315/year saved
New York	$4,952	$4,952/year saved
New Jersey	$3,500	$3,500/year saved
Illinois	$4,813	$4,813/year saved
Oregon	$7,400	$7,400/year saved

Over 10 years at $100,000 salary, a Californian relocating to Texas saves approximately $63,000 in state income and SDI tax alone (assuming rates hold steady).

But Wait: Texas Property Tax

Texas makes up for the lack of income tax with high property taxes. This affects homeowners more than renters.

Metric	Texas	National Average
Effective property tax rate	~1.60%	~0.99%
Tax on $350,000 home	~$5,600/year	~$3,465/year
Tax on $500,000 home	~$8,000/year	~$4,950/year
Tax on $750,000 home	~$12,000/year	~$7,425/year

Example: A Texas homeowner with a $400,000 home pays about $6,400/year in property taxes. In California, the same $400,000 home (under Prop 13) might be assessed at $200,000–$220,000 due to acquisition value limits — resulting in $2,200–$2,420/year in CA property tax. The Texan saves $5,000+ on state income tax but pays $3,000–$4,000 more in property tax.

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

Texas Homestead Exemption

Texas offers a $100,000 homestead exemption from school district property taxes (as of 2023 legislation), which significantly reduces the effective rate:

On a $400,000 home with a $100,000 exemption: taxed on $300,000 = ~$4,800/year
Additional exemptions 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:

Area	Total Sales Tax Rate
Houston	8.25%
Dallas	8.25%
Austin	8.25%
San Antonio	8.25%
El Paso	8.25%
Rural areas	6.25%–8.25%

8.25% is the maximum allowed. Most populated areas are at the cap.

Annual impact at different spending levels:

Spend $30,000/year on taxable goods: $2,475 in sales tax
Spend $50,000/year on taxable goods: $4,125 in sales tax
Groceries and prescription drugs are exempt from sales tax in Texas

Worked Examples

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

Item	Texas	New York (upstate)
Gross salary	$70,000	$70,000
State income tax	$0	$2,747
Federal income tax	~$7,854	~$7,854
Social Security	$4,340	$4,340
Medicare	$1,015	$1,015
Annual take-home	$56,791	$54,044
Monthly take-home	$4,733	$4,504
TX advantage	+$2,747/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 (1.1%)	$0	$1,320
Federal income tax	~$18,954	~$18,954
Social Security	$7,440	$7,440
Medicare	$1,740	$1,740
Annual take-home	$91,866	$83,471
TX advantage	+$8,395/year	—

How Texas Funds Its Government Without Income Tax

Texas state revenues come from:

Sales tax: ~60% 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: 20 cents/gallon
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.

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