Texas Tax Calculator - No State Income Tax Calculator
Free Texas tax calculator to estimate your federal income taxes and FICA. Texas has NO state income tax - see your tax savings with accurate 2025 rates
Texas Tax Calculator
Tax Summary
Tax Savings vs California
You save approximately $3,021 per year!
What is a Texas Tax Calculator?
A Texas Tax Calculator is a free financial tool that estimates your total tax liability for Texas residents. Since Texas has NO state income tax, this calculator only computes federal income tax and FICA taxes (Social Security and Medicare). It helps Texas residents understand their tax burden and shows significant tax savings compared to high-tax states.
This calculator is essential for:
- Texas Residents - Calculate federal tax liability without state income tax
- Relocation Planning - See tax savings when moving from high-tax states
- Job Offers - Compare net take-home pay in Texas vs other states
- Tax Savings Analysis - Understand how much you save with no state tax
- Property Tax Planning - Estimate Texas property taxes on your home
To compare Texas taxes with California's high rates, check out our California Tax Calculator to see how CA's 13.3% top rate compares against Texas's zero income tax.
To understand New York's progressive tax system, explore our New York Tax Calculator to calculate how much you'd pay in NY versus Texas and see potential savings.
To evaluate taxes across multiple states at once, use our State Tax Comparison Calculator to compare Texas side-by-side with up to 3 other states.
To see how Texas ranks among all 50 states, try our Income Tax Comparison by State to view complete rankings from lowest to highest tax states.
For understanding total housing costs in Texas, check our Property Tax Comparison by State to see how TX's higher property taxes offset the lack of income tax.
How the Calculator Works
The calculation uses 2025 federal tax brackets only (no state tax):
Step 1: Calculate Taxable Income
Taxable Income = Annual Income - Standard Deduction - Additional Deductions
Step 2: Calculate Federal Tax (Progressive Brackets)
10%, 12%, 22%, 24%, 32%, 35%, 37%
Step 3: Calculate Texas State Tax
State Tax = $0 (No State Income Tax!)
Step 4: Calculate FICA Taxes
Social Security = min(Income, $176,100) × 6.2%
Medicare = Income × 1.45% (+ 0.9% if >$200k)
Step 5: Estimate Property Tax (Optional)
Property Tax ≈ Home Value × 1.60%
Final: Total Tax and Net Income
Net Income = Gross Income - Federal - FICA
Key Texas Tax Concepts
No State Income Tax
Texas is one of 9 states with no personal income tax, making it highly attractive for high earners and retirees.
High Property Taxes
Texas compensates with higher property taxes (avg 1.60% vs 1.11% national average) to fund state and local services.
Sales Tax Rate
Texas state sales tax is 6.25%, with local taxes bringing the average combined rate to 8.2% for goods and services.
Relocation Magnet
No income tax makes Texas a top destination for people relocating from California, New York, and other high-tax states.
Business-Friendly
Texas also has no corporate income tax, though businesses pay franchise tax on gross receipts exceeding $1.23 million.
FICA Still Applies
Federal payroll taxes: 6.2% Social Security (up to $176,100 cap) and 1.45% Medicare (no cap, +0.9% over $200k).
How to Use This Calculator
Enter Annual Income
Input your gross annual income before any deductions (e.g., $75,000)
Select Filing Status
Choose single, married filing jointly, or head of household
Add Deductions
Include itemized deductions or use standard deduction (calculated automatically)
Enter Dependents
Add number of qualifying dependents for federal tax credits
Add Home Value (Optional)
Enter home value to estimate Texas property taxes at 1.60% rate
Review Results & Savings
See total tax, net income, and savings compared to California
Benefits of Using This Calculator
- • See Tax Savings: Instantly see how much you save with Texas's no state income tax policy.
- • Relocation Planning: Compare your current state's taxes to Texas for informed moving decisions.
- • Property Tax Estimator: Includes optional property tax calculator using Texas's 1.60% average rate.
- • Job Offer Evaluation: Understand true take-home pay when evaluating Texas job offers.
- • Complete Federal Tax: Accurate 2025 federal tax calculations with all brackets and FICA.
- • Instant Results: Get immediate tax estimates with comparison to high-tax states.
Texas Tax Advantages & Considerations
1. Zero State Income Tax
Texas has no state income tax on wages, making it one of the most tax-friendly states for W-2 employees and business owners.
2. Higher Property Taxes
Texas property taxes average 1.60% of home value (vs 1.11% national average). On a $300k home, expect $4,800 annually.
3. Sales Tax Considerations
Texas sales tax is 6.25% (state) plus local taxes averaging 8.2% total, higher than some states but no tax on groceries.
4. Federal Tax Still Applies
You still pay full federal income tax and FICA taxes. The savings comes from eliminating 4-13% state tax other states charge.
5. High Earner Benefit
High earners save the most - someone earning $500k saves $25,000-$50,000 annually vs California or New York.
6. Retiree Friendly
No tax on Social Security, pensions, or retirement account withdrawals makes Texas attractive for retirees.
Frequently Asked Questions
Does Texas have state income tax?
No, Texas is one of nine states with no personal income tax. Texas residents only pay federal income tax and FICA taxes (Social Security and Medicare), making it one of the most tax-friendly states for wage earners.
How does Texas fund government without income tax?
Texas relies heavily on sales tax (averaging 8.2%) and property taxes to fund state and local government. Texas has one of the highest property tax rates in the US, with an average effective rate of 1.60% of home value.
How much can I save living in Texas vs California?
A Texas resident earning $100,000 saves approximately $6,000-$9,000 annually compared to California, which has state income tax rates up to 13.3%. High earners save even more, making Texas attractive for relocation.
What are the property taxes like in Texas?
Texas has high property taxes with an average effective rate of 1.60%, compared to the national average of 1.11%. On a $300,000 home, expect to pay approximately $4,800 annually in property taxes, though rates vary by county.