Tax & Paycheck Calculators
Texas Salary Tax Calculator
No state income tax, constitutionally banned since 2019 — but Texas makes up for it with some of the highest property taxes in the country.
Calculate your Texas take-home pay
Federal income tax and FICA only — there's no state layer to add.
No state tax line to model — Texas is constitutionally prohibited from taxing personal income. No Texas city levies a local income tax either.
A ban that's been reinforced, not just longstanding
Texas has never taxed personal income, but the legal protection got considerably stronger in November 2019, when voters approved Proposition 4, adding Article VIII, Section 24-a to the Texas Constitution. That provision states outright that the legislature "may not impose a tax on the net incomes of natural persons" — a flat prohibition, not just a requirement to ask voters first. An earlier 1993 provision (the Bullock Amendment) had already required voter approval before any income tax could be enacted; the 2019 amendment closed that door even further. Any future Texas income tax would need both legislative action and a statewide constitutional amendment election — a genuinely high bar that makes one extremely unlikely.
The real tradeoff: property tax, not sales tax
| Revenue source | Texas |
|---|---|
| State income tax | 0% (constitutionally banned) |
| Combined sales tax | Up to 8.25% |
| Effective property tax rate | ~1.60% (among the highest nationally) |
| Local income tax | None |
The homestead exemption softens the property tax bill
Texas increased its general homestead exemption from $40,000 to $100,000 for school district taxes in 2023 legislation — a real, meaningful reduction in the taxable value of an owner-occupied primary residence, with an additional $10,000 exemption for homeowners 65 or older or with disabilities. Renters don't benefit from this exemption directly, though property tax costs are generally reflected in rental pricing over time.
What this means for your actual paycheck
- Your take-home pay reflects only federal tax and FICA — there's no state withholding line, and no Texas city adds its own income tax either.
- Homeowners feel the tradeoff more than renters, since property tax is the primary mechanism funding Texas schools and local government in place of income tax revenue.
- The franchise tax — a business-level tax on companies with revenue above roughly $2.47 million — funds part of the state budget too, though it doesn't affect individual paychecks directly.
Texas's constitutional income tax prohibition (Article VIII, Section 24-a, added via 2019's Proposition 4) and effective property tax rate verified against multiple independent 2026 Texas tax guides. This is a planning estimate — property tax rates vary by county, school district, and municipality within Texas.
Frequently asked questions
Before you estimate your Texas paycheck.
Does Texas have a state income tax?
No. Texas is constitutionally prohibited from taxing personal income, a protection reinforced by a 2019 constitutional amendment that adds an outright ban on top of an earlier voter-approval requirement.
Could Texas add an income tax in the future?
It's extremely unlikely. Any future income tax would require both legislative approval and a statewide constitutional amendment election — a high bar that no Texas politician has seriously proposed challenging.
If there's no income tax, why is Texas's overall tax burden not zero?
Texas relies heavily on property taxes (among the highest in the country, roughly 1.60% effective) and a moderate combined sales tax (up to 8.25%) to fund state and local government instead of income tax revenue.
Does the property tax burden affect renters too?
Not as directly as homeowners, since renters don't pay property tax themselves, but landlords' property tax costs are generally reflected in rental pricing over time.
Does Texas have local city income taxes?
No. No Texas city or municipality levies its own income tax — the constitutional prohibition applies statewide.