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 a Texas household pays instead of income tax: a single filer earning $75,000 who owns a $300,000 home, spends $25,000 a year on taxable goods and drives 12,000 miles in a 25-mpg car.
The result
The paycheck keeps about $61,593 after federal tax and FICA, because Texas withholds nothing. The state collects elsewhere. Property tax at the 1.74% median effective rate (Tax Foundation, 2024) comes to about $5,220 a year; individual bills vary with local rates and homestead exemptions. The taxable spending carries $1,563 at the 6.25% state rate, or up to $2,063 where local add-ons reach the 8.25% ceiling. Those 480 gallons of fuel include just $96 of state gas tax at 20¢ a gallon. For an owner, property tax is the biggest of the three here, which is why renters and owners experience the no-income-tax deal very differently.
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.
Official sources
Rates and rules change. Confirm the current figures with the official state authority before you rely on them:
- Texas Comptroller of Public Accounts (comptroller.texas.gov)
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?
Why are property taxes so high in Texas?
What is the highest sales tax rate you can pay in Texas?
What comes out of a Texas paycheck?
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.