Texas Salary & Tax Calculator
Texas has no state income tax, and it's constitutionally protected against ever adding one without a statewide vote. See your true take-home pay below.
Texas is the largest of the nine states with no personal income tax, and unlike most of the others, this status is locked in by the state constitution — a 2019 amendment requires a statewide voter referendum before lawmakers could ever create one, making a future income tax highly unlikely. Every state that borders Texas taxes income to some degree: Louisiana tops out around 4.25%, Arkansas near 3.9%, Oklahoma up to 4.75%, and New Mexico as high as 5.9%. That makes Texas a persistent draw for both individuals and corporations relocating from higher-tax states like California, whose top rate exceeds 13%. It's worth noting the tradeoff, though: Texas leans heavily on property tax to fund schools and local government, and its average effective property tax rate is among the highest in the country, alongside a statewide sales tax that can reach 8.25% with local add-ons in cities like Houston, Dallas, and Austin. For W-2 employees, however, no Texas city or county adds any local income tax, so your paycheck is reduced only by federal withholding and FICA — enter a rate reflecting just those two below.
*Estimates only, not financial or tax advice. Actual withholding may vary — consult a tax professional for precise figures.
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Full Salary & Tax Calculator🏆 Texas Paycheck Basics
What actually comes out of a Texas paycheck, and how the state makes up the revenue elsewhere.
How it Works
With no state income tax, only federal withholding and FICA reduce a Texas paycheck — enter a combined rate reflecting just those two categories.
The Formula
Net Pay = Gross Pay - (Federal Tax + FICA + Pre-tax Deductions). No state tax line is subtracted because Texas's rate is 0%.
Pro Tip
If you're buying a home in Texas, remember to budget for above-average property taxes — the income tax savings can be partly offset by your annual property tax bill.
Frequently Asked Questions
Does Texas have a state income tax? +
No. Texas has no personal income tax, and it is constitutionally protected — a 2019 amendment requires voter approval before the legislature could ever introduce one, making it politically very unlikely to change.
How does Texas compare to its neighboring states? +
All four states bordering Texas charge income tax: Louisiana (up to 4.25%), Arkansas (up to 3.9%), Oklahoma (up to 4.75%), and New Mexico (up to 5.9%). Texas is the clear outlier in the region.
Do Texas cities like Houston, Dallas, or Austin add a local income tax? +
No. No Texas city or county imposes a local income or payroll tax. Texas relies heavily on property tax and one of the highest average sales tax rates in the country to fund state and local government instead.
What still gets withheld from a Texas paycheck? +
Federal income tax and FICA (6.2% Social Security plus 1.45% Medicare) are still withheld from every paycheck, along with any pre-tax benefits you've elected like health insurance or 401(k) contributions.
Is Texas's overall tax burden actually low? +
Not necessarily overall — Texas has some of the highest property tax rates in the nation, which can offset the income tax savings for homeowners. Renters and high-income earners without large property holdings tend to benefit the most from the zero income tax rate.