Texas has no state income tax. Use this calculator to estimate your federal income tax and FICA contributions for 2026.
Texas has no state income tax, a provision enshrined in the state constitution. The state generates revenue primarily through sales tax (6.25% + local), property taxes, and oil and gas production taxes.
Texas has no state income tax but imposes a franchise (margin) tax on businesses with revenue over $2.47 million. Property taxes are relatively high compared to the national average, partially offsetting the lack of income tax.
Because Texas has no state income tax, residents only pay federal income tax and FICA payroll taxes. This can result in significant savings compared to states with income tax rates of 5% or higher. The calculator above shows your total tax burden as a Texas resident.
Sales Tax: 6.25%. Local jurisdictions may add additional sales tax.
Even without a state income tax, Texas residents still pay federal income tax. Here are the 2026 brackets for single filers:
| Rate | Single Filer Income Range |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 |
| 37% | Above $626,350 |
Standard deduction: $15,000 (single), $30,000 (married filing jointly).
Source: IRS Revenue Procedure for tax year 2025.
| Tax | Rate | Wage Base |
|---|---|---|
| Social Security | 6.2% | First $168,600 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
The minimum wage in Texas for 2026 is $7.25/hour, which follows the federal minimum. Federal rate applies Full-time annual equivalent: approximately $15,080/year.
The median household income is approximately $73,000. With no state income tax, Texas residents keep more of their earnings compared to residents of income-tax states at the same salary level.
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization Filing | $300 | One-time |
| No annual report (franchise tax filing required) | N/A | N/A |
| Registered Agent | $0 – $150/yr | Yearly |
Source: Texas Secretary of State.
Northwest Registered Agent handles all the paperwork for $39 + state fee. Includes free registered agent service for the first year.
Start My Texas LLCNo. Texas has no state income tax, a provision enshrined in the state constitution. The state generates revenue primarily through sales tax (6.25% + local), property taxes, and oil and gas production taxes.
Texas residents pay federal income tax, FICA taxes (Social Security and Medicare), and state sales tax of 6.25%. Property taxes also apply.
The minimum wage in Texas for 2026 is $7.25 per hour. Federal rate applies
Filing an LLC in Texas costs $300 for the Articles of Organization. No annual report (franchise tax filing required).
With no state income tax, Texas is popular among retirees looking to minimize their tax burden. However, the state has a relatively high sales tax of 6.25% that affects everyday spending.