Texas Income Tax Calculator 2025 โ€” Total Tax Burden

Texas has no state income tax but high property and sales taxes. Calculate your total tax burden in Texas and compare to CA and NY.

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Taxable purchases (excludes groceries, housing)
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TX average: 1.60%
Common salaries:
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TX State Income Tax
$0
Annual Property Tax
$0
Est. Sales Tax Paid
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Total TX Tax Burden

Texas Tax Burden Breakdown

Federal Tax (All States Pay This)

How Texas Taxes Actually Work

Texas has zero state income tax โ€” the only tax you see in your paycheck is federal income tax and FICA. The trade-off is that Texas funds its government through property taxes (some of the highest in the nation) and sales taxes.

Enter your income, home value, and estimated annual taxable spending to see your real Texas tax burden compared to your federal taxes.

The Formula

TX State Income Tax = $0 (no state income tax)
Property Tax = Home Value ร— Local Rate (avg 1.60%)
Sales Tax = Annual Taxable Spending ร— 8.25% (avg TX rate)
Total TX Tax Burden = Property Tax + Sales Tax (state/local portion)

Example

John, Single, $90,000 salary, $400K home, $45K annual spending in Texas:
TX state income tax: $0
Property tax: $400,000 ร— 1.60% = $6,400/year
Sales tax paid: $45,000 ร— 8.25% = $3,713/year
Total TX tax burden: $10,113/year | Federal income tax: ~$11,900 (separate)
Compare: CA resident at same income would pay ~$5,500 CA state income tax but lower property tax (~1.1%)
Extended

TX vs CA vs NY Tax Comparison

Compare your total tax burden across Texas, California and New York

Compare total tax burden across three states at your current income and home value.

Tax ComponentTexasCaliforniaNew York (NYC)

* Property taxes use TX avg 1.60%, CA avg 1.10%, NY avg 1.72%. CA income tax uses standard deduction. NYC includes NYC city tax.

See how different home values affect your Texas tax burden.

Home ValueAnnual Property Tax (1.6%)% of Your Income

Frequently Asked Questions

Does Texas have a state income tax?
No. Texas has no state income tax. The Texas Constitution prohibits a personal income tax. This means all your earnings are free from state-level income tax. However, Texas compensates with higher property taxes and sales taxes, and the overall tax burden depends heavily on your home value and spending habits.
What is the property tax rate in Texas?
Texas has one of the highest average property tax rates in the US, averaging around 1.60% of assessed home value annually. Rates vary by county โ€” Travis County (Austin) averages 1.8%, while Harris County (Houston) averages about 2.0%. Texas does not have a state property tax; rates are set locally by school districts, counties and municipalities.
What is the Texas sales tax rate?
Texas state sales tax is 6.25%. Local jurisdictions (cities, counties, transit authorities) can add up to 2%, making the maximum combined rate 8.25%. The average combined rate across Texas is about 8.2%. Food (groceries) and prescription drugs are exempt from Texas sales tax.
How does Texas total tax burden compare to California?
Texas residents pay no state income tax but pay higher property taxes and similar sales taxes. California residents pay up to 13.3% state income tax plus lower property taxes (Prop 13 caps at 1.1%). For high earners, Texas is significantly cheaper. For middle-income earners with high home values, the comparison is closer. This calculator shows the full picture.
Does Texas have any other notable taxes?
Texas has a franchise tax (margin tax) for businesses, but no personal income tax. There is also the Texas lottery as a form of revenue. Other notable taxes include vehicle registration fees, fuel taxes (20 cents/gallon state + 18.4 cents federal), and various local fees.