Texas has no state income tax. On a $100K salary, you keep $79,125 (20.9% effective rate), ranking #7 out of 50 states. Cost-adjusted rank: #8.
Pre-filled with Texas tax rates. Adjust salary and filing status.
Texas has never had a state income tax and it’s constitutionally prohibited — amending the constitution would require a statewide referendum. This makes Texas one of the most tax-friendly states for W-2 earners.
Texas compensates with a 6.25% state sales tax (local taxes can push it to 8.25%). Most groceries are exempt.
Property taxes are among the highest in the nation, averaging 1.6–1.8% of market value. A $400,000 home might cost $6,400–$7,200/year in property taxes.
Texas is the #1 destination for corporate relocations and has seen massive population growth. The combination of no income tax and relatively affordable housing (outside Austin) makes it attractive for high earners.
How does Texas’s tax burden change as your income rises? With no state tax, the effective rate increase at higher incomes is driven entirely by federal bracket progression and Medicare surtax.
| Gross Salary | Federal Tax | FICA | State Tax | Take-Home | Effective Rate | Monthly |
|---|---|---|---|---|---|---|
| $40K | $2,620 | $3,060 | $0 | $34,320 | 14.2% | $2,860 |
| $50K | $3,820 | $3,825 | $0 | $42,355 | 15.3% | $3,530 |
| $60K | $5,020 | $4,590 | $0 | $50,390 | 16.0% | $4,199 |
| $75K | $7,725 | $5,738 | $0 | $61,538 | 17.9% | $5,128 |
| $100K | $13,225 | $7,650 | $0 | $79,125 | 20.9% | $6,594 |
| $120K | $17,625 | $9,180 | $0 | $93,195 | 22.3% | $7,766 |
| $150K | $24,774 | $11,475 | $0 | $113,751 | 24.2% | $9,479 |
| $200K | $36,774 | $14,339 | $0 | $148,887 | 25.6% | $12,407 |
The median household income in Texas is $62,000, which translates to $51,997/year ($4,333/month) take-home after all taxes. This is near the national median.
After cost-of-living adjustment, the median income’s purchasing power in Texas is equivalent to $55,911 in an average-cost area. Your money stretches further here than the raw numbers suggest.
Texas ranks #7/50 for raw take-home pay and #8/50 for cost-adjusted purchasing power at $100K. The 1-position shift between raw and cost-adjusted ranking reflects the below-average cost of living, which boosts real purchasing power.
At $100K in Texas, you keep $79,125. The best state (Alaska) gives $79,125, and the worst (California) gives $70,480. Texas is among the top 10 states for take-home pay.
Texas levies no personal income tax, making it one of just 9 states where your paycheck isn’t reduced by state-level income taxes. On $100K, you keep $79,125 after federal taxes and FICA — compared to $70,480 in California or $72,040 in New York.
Filing as married filing jointly on $100K changes take-home from $79,125 (single) to $84,710 (married). The $5,585 marriage bonus comes from the doubled standard deduction ($32,200 vs $16,100) and wider lower brackets.
Texas does not impose local income taxes, so the state rate is your only state-level income tax.
How does Texas stack up against other states in the South?