Texas charges no state income tax on wages. Here is what that means for your paycheck, plus how it compares nationally.
Last updated: May 2026 · Data: state revenue departments, IRS, BLS
Texas is one of nine U.S. states with no state income tax on wages. There are no income tax brackets to report. 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.
No state income tax is withheld from Texas paychecks. Workers keep more of every dollar than residents of states that tax income.
The nine states with no income tax on wages are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Because Texas has no state income tax, there is no state standard deduction to apply. You still claim the federal standard deduction on your federal return: $15,000 (single) or $30,000 (married filing jointly) for 2026.
| Benchmark | Top Marginal Rate |
|---|---|
| Texas (2026) | 0% |
| National average - all 50 states | 4.86% |
| National average - 41 states with an income tax | 5.93% |
| Highest in the U.S. (California) | 13.3% |
| Lowest among states that tax income | 2.5% |
| States with no income tax | 0% (9 states) |
Texas levies no income tax, placing it among the nine lowest-tax states in the nation for wage earners.
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.
| Texas Tax Snapshot | 2026 |
|---|---|
| Top Income Tax Rate (2026) | 0% |
| Income Tax Structure | None |
| State Sales Tax | 6.25% |
| Minimum Wage | $7.25/hour |
| Median Household Income | $73,000 |
| Tax Agency | Texas Comptroller of Public Accounts |
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See how nearby states tax income in 2026:
No. Texas is one of nine states with no state income tax on wages and salaries 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.
Yes. Residents of Texas still owe federal income tax and FICA (Social Security and Medicare) to the IRS. Only the state-level income tax is zero.
There is no state standard deduction because there is no state income tax. On your federal return you can still claim the 2026 federal standard deduction of $15,000 (single) or $30,000 (married filing jointly).
Texas is often considered tax-friendly because wage and salary income is not taxed at the state level. Consider sales tax, property tax, and cost of living for the full picture.
While the national average top income tax rate is 4.86% across all 50 states, Texas charges 0%. Only eight other states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming) also levy no wage income tax.