What is the texas income tax calculator?
In short
Texas levies no state income tax. Texas leans on property taxes (~44% of state & local collections) and sales tax (~35%), plus a business franchise 'margins' tax and oil & gas severance revenue. For a single filer that means roughly $61,593 take-home on a $75,000 salary (17.9% effective, all federal + FICA). Texas hardened its no-income-tax status with a 2019 constitutional amendment (Prop 4, 74% support) — among the strongest such bans in the nation.
Because Texas has no state income tax, this page focuses on what actually funds the state and what your federal-only tax looks like. Texas leans on property taxes (~44% of state & local collections) and sales tax (~35%), plus a business franchise 'margins' tax and oil & gas severance revenue.
How to use this calculator
- 1Type in your yearly gross pay.
- 2Pick your filing status to size the federal tax.
- 3Texas is pre-selected with $0 state tax — switch states to compare against one that does tax income.
- 4Add 401(k)/HSA contributions to watch your federal tax (not state) fall.
The formula
- federal tax
- — Federal income tax from progressive brackets
- TX tax
- — Texas: no state income tax
- FICA
- — Social Security 6.2% + Medicare 1.45%
Worked example
The scenario
What funds Texas if not income tax?
The result
Texas leans on property taxes (~44% of state & local collections) and sales tax (~35%), plus a business franchise 'margins' tax and oil & gas severance revenue. A $75,000 single filer keeps ~$61,593 (federal + FICA only).
Common use cases
- Understanding how Texas pays for services without an income tax
- texas relies far more on property taxes (~44%) than the national average (~31%), shifting the burden toward landowners
- texas funds a roughly $338 billion two-year budget without any individual income tax
- Checking whether Texas taxes any income (it doesn't)
Limitations & assumptions
- Texas has no state income tax, so this shows federal + FICA only. Texas has no individual income tax, but businesses pay a franchise 'margins' tax computed on gross margin rather than net profit.
- Oil and gas severance taxes are a meaningful Texas-specific revenue stream tied to its energy economy.
- Federal tax uses current brackets and the standard deduction unless you itemize.
- This is an estimate, not tax advice — verify against your actual return.
Frequently asked questions
Does Texas have a state income tax?
If Texas has no income tax, how does it pay for things?
Does Texas tax any income at all?
What's the take-home on $75,000 in Texas?
Is moving to Texas worth it for taxes?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.