Texas Income Tax Calculator

Estimate your Texas income tax burden

Updated for 2023 tax year on Mar 01, 2023

Income tax calculators by state

Texas state taxes

Texas income taxes

One of the key financial benefits of living in the Lone Star State is that Texas does not impose a state income tax on its residents. Whether you earn $20,000 a year or $200,000, the state of Texas will not take a percentage of your earned income, providing significant savings for many residents.

Similarly to the state income tax, Texas also does not impose a state payroll tax or local income tax, allowing for greater take-home pay for employees and more savings for employers.

As Texas does not levy an income tax, there are no state standard deductions or state exemptions to factor into residents’ annual tax calculations.

Texas sales tax

The state sales tax rate in Texas is 6.25%, but local jurisdictions can add up to an additional 2% to this rate.

Texas property tax

Property taxes in Texas are among the highest in the United States. The average effective property tax rate in Texas is 1.81% of the property’s assessed value.

Texas capital gains tax

Since Texas does not have a state income tax, it also does not tax capital gains, which are considered a form of income.

Texas gas tax

Texas imposes a flat rate gas tax of 20 cents per gallon.

Texas tobacco tax

The tobacco tax in Texas is $1.41 per pack of 20 cigarettes.

Texas insurance tax

Insurance companies in Texas are required to pay a tax of 1.6% on the gross amount of premiums.

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