Texas Take-Home Pay Calculator (2026)

Texas has no state income tax. Workers in Texas keep their entire gross wage subject only to federal taxes and FICA. The Texas constitution prohibits a personal income tax unless approved by voters, and a 2019 constitutional amendment made that restriction even more explicit by requiring voter approval of any future income tax and specifying that proceeds could only be used for property tax relief and public education. An income tax in Texas is effectively off the table for the foreseeable future.

Texas is the most populous state without an income tax, with over 30 million residents. The absence of income tax is one factor behind significant corporate relocations and individual moves from California, New York, and Illinois to Texas over the past decade. A high-income worker earning $150,000 who moves from California to Texas saves approximately $10,000 to $12,000 per year in state income tax. For lower earners, the savings are proportionally smaller but still meaningful.

Texas funds state services primarily through sales taxes and property taxes. The state sales tax rate is 6.25%, and local jurisdictions can add up to 2%, bringing the maximum combined rate to 8.25%. Most major metro areas charge the full combined 8.25%. Texas property taxes are high by national standards. Average effective property tax rates for homeowners are around 1.6% to 1.8% of assessed value, which translates to several thousand dollars per year for a median-priced home.

For workers who rent and have moderate consumer spending, Texas's no-income-tax advantage is most pronounced. Homeowners who pay high property taxes see some of that advantage offset, though Texas's homestead exemption and the SALT deduction cap change the net calculation for each individual. Overall, for most working Texans, the paycheck is larger than it would be in most other states at the same income level.