Texas Income Tax Calculator 2026

Texas Income Tax: No State Tax

Texas is one of the few states with no state income tax. Residents of Texas only pay federal income tax on their earnings. Texas has no state income tax, enshrined in the state constitution. The state funds services primarily through property and sales taxes.

While Texas does not tax income, residents still owe federal income tax using the standard IRS brackets. The 2026 federal rates range from 10% to 37% depending on your taxable income and filing status. This calculator shows your complete federal tax breakdown for Texas residents.

Tax Advantages of Living in Texas

Without state income tax, Texas residents keep more of their earnings compared to states like California (13.3% top rate) or New York (10.9%). For someone earning $100,000, the difference can be $5,000 to $10,000 per year in savings. This makes Texas especially attractive for high earners, retirees, and remote workers choosing where to live.

However, Texas may offset the lack of income tax through higher property taxes, sales taxes, or other fees. It is important to consider your total tax burden, not just income tax, when comparing states.

Filing Tips for Texas Residents

Since there is no state return to file, Texas residents only need to submit their federal tax return. Focus your tax planning on maximizing federal deductions: contribute to a 401(k) or IRA, use your HSA, and take the higher of the standard or itemized deduction. The 2026 standard deduction is $15,700 for single filers and $31,400 for married filing jointly.