Texas Tax Calculator

Estimate your Texas tax burden for 2025: federal income tax, FICA, property tax, and how much you save vs. high-income-tax states.

Annual Gross Income$80K

USD

$0$500K

Home Assessed Value$350K

USD

$50K$1M

Property Tax Rate (county average)

%/yr

Annual Household Spending$50K

USD

$0$100K

Total Tax (Federal + FICA)

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Net Take-Home

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Federal Income Tax

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TX State Income Tax

FICA (SS + Medicare)

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Federal Effective Rate

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Total Effective Rate

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Annual Savings vs. State Income Tax States

Saved vs. California

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Saved vs. NY State

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Saved vs. NYC Resident

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Est. Annual Property Tax

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Est. Annual Sales Tax

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Total Estimated Local Taxes

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🤠 What is the Texas Tax Calculator?

Texas is one of nine US states with no state income tax. Texas residents pay federal income tax and FICA (Social Security and Medicare) on their earnings, but pay zero dollars to the state of Texas on wages, salary, investment income, or retirement distributions. This fundamentally changes the tax picture for Texans compared to residents of high-income-tax states like California (up to 13.3%), New York (up to 10.9%), or New Jersey (up to 10.75%).

This calculator covers two aspects of the Texas tax picture. The Income Tax mode computes your federal income tax using 2025 IRS brackets, your FICA obligation, and shows a direct comparison of how much you save versus a California or New York resident earning the same income. A software engineer earning $150,000 in Austin pays zero TX state income tax, while the same engineer in San Francisco pays roughly $10,000 in CA state tax and SDI. In New York City, that engineer pays roughly $12,000 in combined NY state and NYC city tax. These savings often drive relocation decisions for high-income professionals.

The Property and Sales Tax mode addresses a common counterargument: Texas offsets its zero income tax with high property taxes and sales taxes. This is partially true. Texas average effective property tax rates run 1.60% to 2.15%, among the highest in the US. Combined sales tax reaches 8.25% in major cities. The calculator lets you input your home value and annual spending to estimate these local taxes and see your full Texas tax picture.

This calculator is designed for wage earners and salaried employees in 2025. Self-employed Texans also owe self-employment tax (15.3% on net earnings up to $176,100). Businesses with gross revenues above $2.47 million may owe Texas franchise tax. For complex situations including capital gains, rental income, or business ownership, consult a Texas CPA for a precise calculation.

📐 Formula

Total TX Tax = T_federal + T_FICA + $0_state

T_federal = Federal income tax using 2025 IRS brackets after $15,000 standard deduction (single) or $30,000 (married)

T_FICA = Social Security 6.2% on first $176,100 + Medicare 1.45% on all income + 0.9% Additional Medicare on income above $200,000 (single)

$0_state = Texas state income tax = $0 (no state income tax in Texas)

Property Tax = Home Assessed Value × County Effective Rate (average 1.75%). Homestead exemption reduces school district assessed value by $100,000.

Sales Tax = Annual Spending × 75% taxable share × 8.0% combined TX rate (6.25% state + 1.75% average local)

Example: Single, $80,000 income: Federal = $8,114. FICA = $6,120. TX state = $0. Total = $14,234 (17.8% effective). CA equivalent adds $3,869. NYC equivalent adds $5,961.

📖 How to Use This Calculator

Steps

Choose your calculation mode - Select Income Tax to see your federal tax, FICA, and state comparison savings. Select Property and Sales Tax to estimate your Texas local tax burden based on home value and spending.

Enter your annual gross income (Income Tax mode) - Type or drag to your total annual income. Select your filing status: Single, Married Filing Jointly, or Head of Household. The calculator automatically shows TX state tax as $0.

Enter home value and spending (Property and Sales Tax mode) - Type your home assessed value and adjust the property tax rate if you know your county rate. Enter estimated annual household spending to see the approximate sales tax cost for the year.

Click Calculate to see results - View your complete Texas tax picture: total taxes owed, net take-home pay, effective rates, and your annual dollar savings compared to California and New York residents at the same income level.

💡 Example Calculations

Example 1 - Single, $75,000 Annual Income

A single teacher in Austin earning $75,000 per year

Federal taxable income = $75,000 − $15,000 standard deduction = $60,000

Federal tax = 10%×$11,925 + 12%×$36,550 + 22%×$11,525 = $1,193 + $4,386 + $2,536 = $8,115

FICA = 6.2%×$75,000 (SS) + 1.45%×$75,000 (Medicare) = $4,650 + $1,088 = $5,738. TX state = $0.

Total = $13,853. Net take-home = $61,147 (18.5% effective). Savings vs. California = $3,869. Savings vs. NY State = $3,489.

Net Take-Home = $61,147/year ($5,096/month)

Try this example →

Example 2 - Married Filing Jointly, $120,000

A married couple in Houston filing jointly with $120,000 combined income

Federal taxable income = $120,000 − $30,000 = $90,000. TX state = $0.

Federal tax = 10%×$23,850 + 12%×$66,150 = $2,385 + $7,938 = $10,323

FICA = 6.2%×$120,000 + 1.45%×$120,000 = $7,440 + $1,740 = $9,180. Total tax = $19,503.

Net take-home = $100,497 (16.3% effective). Savings vs. California = $5,051. Savings vs. NY State = $5,285. Savings vs. NYC = $9,090.

Net Take-Home = $100,497/year ($8,375/month)

Try this example →

Example 3 - Single High Earner, $250,000

A single tech professional in Dallas earning $250,000

Federal taxable income = $250,000 − $15,000 = $235,000. TX state = $0.

Federal tax (through 32% bracket) = $1,193 + $4,386 + $12,073 + $22,548 + $12,064 = $52,264

FICA = SS cap $176,100×6.2% + Medicare $250,000×1.45% + Additional Medicare $50,000×0.9% = $10,918 + $3,625 + $450 = $14,993

Total = $67,257. Net take-home = $182,743 (26.9% effective). Savings vs. California = $22,059. Savings vs. NYC = $23,303.

Net Take-Home = $182,743/year ($15,229/month)

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Example 4 - Property and Sales Tax, $350,000 Home

A homeowner in San Antonio with a $350,000 home and $60,000 annual spending

Annual property tax = $350,000 × 1.75% = $6,125. (Before homestead exemption, which reduces school district assessed value by $100,000.)

Taxable spending estimate = $60,000 × 75% = $45,000 (groceries and prescriptions are exempt). Sales tax = $45,000 × 8% = $3,600

Total estimated local taxes = $6,125 + $3,600 = $9,725 per year (property + sales combined)

Total Local TX Taxes = $9,725/year

Try this example →

❓ Frequently Asked Questions

Does Texas have a state income tax in 2025?+

No. Texas has no state income tax and has not had one since at least 1845. The Texas Constitution (Article 8, Section 17) prohibits a personal income tax without voter approval. A 2019 amendment further entrenched this by requiring a two-thirds legislative majority plus voter approval before any income tax could be imposed. Texas residents pay federal income tax and FICA but pay zero TX state income tax on wages, salary, or investment income.

What is the Texas state tax rate for individuals?+

The Texas individual income tax rate is 0%. There are no tax brackets, no standard deduction, and no Texas personal income tax return to file. Texas generates state revenue primarily through sales tax (6.25% state rate), property taxes (levied locally), and business franchise tax. Individual Texas residents benefit directly from the $0 state income tax on all levels of earned income.

How much does Texas tax affect take-home pay vs. other states?+

At $75,000 single income, Texas residents save approximately $3,869 vs. California residents and $3,489 vs. New York State residents per year in state income taxes. At $150,000, those savings grow to roughly $10,000 vs. California and $9,000 vs. New York. At $300,000, the savings vs. California (state + SDI) exceed $20,000 per year. The savings compound quickly at higher incomes because both CA and NY have steeply progressive state rates.

Are Texas property taxes really the highest in the US?+

Texas ranks near the top for property tax burden. Average effective property tax rates of 1.60% to 2.15% compare to California (0.68% average, capped by Prop 13), New York (1.40% average), and Florida (0.80% average). On a $350,000 home, a Texan pays roughly $6,125 per year vs. $2,380 for a Californian at the same home value. This property tax gap is real, but typically does not fully offset the income tax savings at middle and higher incomes.

What is the Texas franchise tax and does it apply to me?+

The Texas franchise tax (also called the Texas margin tax) applies to businesses, not individual employees. It generally applies to corporations, LLCs, and partnerships with annual gross revenues above $2.47 million (2025 threshold). For most employees, freelancers with modest income, and small business owners below the threshold, the franchise tax does not apply. The effective franchise tax rate is typically 0.75% of taxable margin for most businesses and 0.375% for retail and wholesale.

Does moving to Texas actually save me money in taxes?+

For high-income earners, moving to Texas from California or New York typically saves significant money. A single earner at $200,000 saves roughly $14,000 to $22,000 per year in state income taxes. However, the total picture depends on housing. If you own a $700,000 home, Texas property taxes of roughly $12,250 per year are much higher than California's $4,760. If you rent, the property tax is embedded in rent but varies. For renters earning above $100,000, moving to Texas almost always reduces total tax burden.

What taxes do retirees pay in Texas?+

Texas retirees pay no state income tax on Social Security benefits, pension income, IRA distributions, or 401(k) withdrawals. Federal income tax still applies to most retirement income (except Roth IRA qualified distributions). Texas also offers property tax exemptions for seniors: homeowners age 65+ receive an additional $10,000 homestead exemption from school district taxes, plus a school district property tax freeze that locks the school portion of property taxes at the age-65 level. This makes Texas particularly attractive for retirees on fixed incomes.

What is Texas sales tax and what is exempt?+

Texas state sales tax is 6.25%, with local additions up to 2% (max combined 8.25%). The following are exempt from Texas sales tax: unprepared grocery food items, prescription drugs, most non-prescription drugs, agriculture supplies, and certain manufacturing equipment. Prepared food (restaurant meals, deli items) is taxable. Clothing is taxable. Online purchases now also collect Texas sales tax following the 2018 Supreme Court Wayfair ruling. The exemptions on groceries meaningfully reduce the effective sales tax rate on typical household budgets.

How does the Texas homestead exemption reduce property taxes?+

The Texas homestead exemption removes $100,000 from the assessed value used by school districts to calculate property taxes on your primary residence (increased from $40,000 by a 2023 constitutional amendment). School district taxes typically represent 40% to 60% of total Texas property taxes. On a $350,000 home with a combined rate of 1.75%, if school districts account for 55%, that is roughly $3,369 in school taxes. The $100,000 exemption reduces taxable value to $250,000 for that portion, saving approximately $963 per year on school taxes alone.

Are capital gains taxed in Texas?+

Texas does not tax capital gains at the state level. There is no Texas capital gains tax. Capital gains from stocks, real estate, cryptocurrency, or other assets are taxed only by the federal government at the applicable federal rate (0%, 15%, or 20% for long-term gains depending on income; short-term gains taxed as ordinary income). This is another significant advantage for investors and business owners compared to California, which taxes capital gains as ordinary income at up to 13.3%.

Does Texas have an estate or inheritance tax?+

No. Texas abolished its estate tax in 2005 and has no inheritance tax. Texas heirs receive assets from an estate without any Texas state tax on the transfer. A federal estate tax applies to estates above $13.61 million per person (2024 threshold, inflation-adjusted annually). For the vast majority of Texas families, neither federal nor state estate tax applies. This makes Texas an attractive state for estate planning compared to states like Massachusetts (estate tax threshold as low as $1 million) or Oregon.

🔗 Related Calculators

Does Texas have a state income tax?

No. Texas is one of nine US states with no state income tax as of 2025. The other eight are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. Texas residents still owe federal income tax and FICA (Social Security and Medicare) on all earned income, but pay zero state income tax on wages, salary, or self-employment income.

How much do Texas residents pay in taxes overall?

Texas residents pay federal income tax and FICA, but no state income tax. A single filer earning $75,000 pays roughly $8,114 in federal income tax plus $5,738 in FICA, totaling about $13,852 (18.5% effective rate). Compared to a California resident at the same income who pays an additional $3,869 in CA state tax and SDI, the Texas resident saves approximately $3,869 per year from zero state income tax.

What is the Texas property tax rate for 2025?

Texas does not have a single statewide property tax rate. Property taxes are levied by local taxing units including school districts, counties, cities, and special districts. The average effective property tax rate in Texas ranges from 1.60% to 2.15% across most counties. Travis County (Austin) averages about 1.75%. Harris County (Houston) is about 1.60% to 1.80%. Property taxes in Texas are among the highest in the US precisely because the state lacks income tax revenue.

What is the Texas sales tax rate?

Texas state sales tax is 6.25%. Local governments (cities, counties, and special purpose districts) can add up to 2% in additional sales tax. The combined maximum rate is 8.25%, which applies in major cities like Austin, Dallas, Houston, and San Antonio. Groceries (unprepared food), prescription drugs, and some agricultural items are exempt from Texas sales tax, reducing the effective rate on typical household spending.

How does Texas compare to California for taxes?

A single Texas resident earning $100,000 pays zero state income tax. A California resident at the same income pays approximately $5,800 in CA state income tax plus $1,100 in CA SDI, totaling roughly $6,900 in state-level taxes. The Texas resident saves that $6,900 per year on income taxes. However, if both own a $400,000 home, the Texas resident pays roughly $7,000 per year in property taxes vs. about $4,000 in California, partially offsetting the income tax savings.

How does Texas compare to New York for taxes?

A single Texas resident earning $100,000 saves approximately $5,800 per year vs. a non-NYC New York State resident at the same income. Vs. an NYC resident, the savings jump to approximately $9,300 per year (NY state + NYC city tax combined). The savings are larger at higher incomes: at $250,000, a Texas resident saves roughly $22,000 vs. California and $23,300 vs. a NYC resident per year in state and local income taxes.

Does Texas have a homestead exemption?

Yes. Texas's homestead exemption removes $100,000 from the school district taxable value of your primary residence (increased from $40,000 by legislation effective 2023). On a $350,000 home, if school districts account for roughly 60% of total property tax, this exemption saves approximately $1,050 to $1,750 per year depending on local school tax rates. To claim it, you must file a homestead exemption application with your county appraisal district.

What taxes do freelancers and self-employed Texans pay?

Self-employed Texas residents pay federal income tax at regular rates plus self-employment (SE) tax at 15.3% on the first $176,100 of net earnings and 2.9% above that for 2025. They can deduct 50% of SE tax before calculating income tax. There is no Texas self-employment or business income tax at the state level, though certain businesses may owe Texas franchise tax if gross revenues exceed $2.47 million (2025 threshold).

📌 Quick Tips

💡Texas has no state income tax, but ranks among the top 10 states for property tax burden. The average effective property tax rate is 1.60% to 2.15% depending on county. On a $350,000 home in Austin or Dallas, annual property taxes typically run $5,600 to $7,500.

💡Texas homestead exemption (since 2023 law change) removes $100,000 from the school district assessed value of your primary residence. On a $350,000 home with a 1.5% school district portion, this saves roughly $1,500 per year on school taxes alone.

💡Texas combined sales tax is 6.25% state rate plus local additions up to 2%, reaching a maximum of 8.25%. In Austin, Dallas, Houston, and San Antonio the combined rate is 8.25%. Groceries and prescription drugs are exempt, which reduces the effective rate on total household spending.

💡A Texas resident earning $100,000 typically saves $4,000 to $7,000 per year in state income taxes compared to a California resident at the same income. However, if the Texas resident owns a $400,000 home, higher property taxes offset $6,000 to $8,000 per year of that savings.

💡Texas has no inheritance tax, no estate tax, and no gift tax as of 2025. This makes Texas favorable for intergenerational wealth transfer and business ownership compared to states with estate taxes.