Texas After Tax Income Calculator 2026
Calculate Your TX Take-Home Pay — No State Income Tax!
Based on IRS 2026 federal tax rates
Enter Your Income Information
Your 2026 Texas Paycheck Breakdown
Paycheck Distribution
How Texas Income Tax Works
🎉 Great News: Texas Has No State Income Tax!
Texas is one of only 9 states with no state income tax. This means you only pay federal income tax and FICA (Social Security + Medicare). More money stays in your pocket compared to high-tax states like California (up to 13.3%) or New York (up to 10.9%).
- Calculate Gross Income: Start with your total annual salary before any deductions.
- Subtract Pre-Tax Deductions: 401(k), health insurance, HSA, and FSA contributions reduce taxable income.
- Apply Federal Tax Brackets: Calculate federal income tax using 2026 IRS progressive tax brackets.
- No State Tax! Texas residents pay $0 in state income tax—skip this step entirely.
- Calculate FICA: Social Security (6.2% up to $176,100) + Medicare (1.45%, plus 0.9% over $200K).
- Calculate Take-Home: Gross minus federal tax and FICA equals your Texas net pay.
Texas Tax Calculation Formulas
Take-Home Pay Formula
FICA Tax (Employee Portion)
Texas State Tax
Effective Tax Rate
2026 Federal Tax Brackets
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 - $11,925 | $0 - $23,850 | $0 - $17,000 |
| 12% | $11,925 - $48,475 | $23,850 - $96,950 | $17,000 - $64,850 |
| 22% | $48,475 - $103,350 | $96,950 - $206,700 | $64,850 - $103,350 |
| 24% | $103,350 - $197,300 | $206,700 - $394,600 | $103,350 - $197,300 |
| 32% | $197,300 - $250,525 | $394,600 - $501,050 | $197,300 - $250,500 |
| 35% | $250,525 - $626,350 | $501,050 - $751,600 | $250,500 - $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $626,350 |
States With No Income Tax
| State | State Income Tax | Notes |
|---|---|---|
| Texas | 0% | No income tax; higher property & sales tax |
| Florida | 0% | No income tax; tourism revenue |
| Nevada | 0% | No income tax; gaming revenue |
| Washington | 0% | 7% capital gains tax on $250K+ |
| Wyoming | 0% | No income tax; mineral revenue |
| South Dakota | 0% | No income tax |
| Alaska | 0% | No income tax; PFD dividend |
| Tennessee | 0% | Eliminated income tax in 2021 |
| New Hampshire | 0% | Eliminated dividend tax in 2025 |
Texas Tax Advantages & Considerations
✅ Advantages
- No state income tax saves thousands annually
- No tax on retirement income
- No estate or inheritance tax
- Business-friendly tax environment
- Simple tax filing (federal only)
⚠️ Considerations
- Higher property taxes (avg. 1.8%)
- 8.25% max sales tax (state + local)
- No state EITC or child tax credit
- May affect state-specific deductions
- High homeowner's insurance rates
Official Resources
Frequently Asked Questions
No! Texas is one of only 9 states with no state income tax. The Texas Constitution prohibits a state income tax. You only pay federal income tax and FICA (Social Security + Medicare). This can save you thousands compared to high-tax states.
Significant savings! For example, at $100,000 income: California state tax ≈ $6,000-7,000 vs Texas $0. That's $6,000+ annually or $500+/month extra take-home pay. Higher earners save even more—California's top rate is 13.3% vs Texas 0%.
Yes, and it's higher than average. Texas property tax rates average about 1.8% (compared to national average ~1.1%). This partially offsets the income tax savings, especially for homeowners. However, renters still benefit fully from zero income tax.
Texas has a 6.25% state sales tax. Cities and counties can add up to 2% more, for a maximum combined rate of 8.25%. Groceries and prescription drugs are exempt from sales tax. The average combined rate is about 8.2%.
Texas does not tax any retirement income—Social Security, pensions, 401(k)/IRA withdrawals are all state tax-free. You'll still pay federal taxes on these, but the Texas advantage makes it a popular retirement destination.
Much simpler! You only file a federal tax return (Form 1040). No state income tax return required. This saves time, complexity, and often tax preparation costs. Just handle federal taxes with the IRS.
No. Texas has no state estate tax and no inheritance tax. Only the federal estate tax applies (exemption of $13.99 million in 2026). This makes Texas favorable for high-net-worth individuals and estate planning.
Extremely unlikely. The Texas Constitution requires a public referendum to approve any income tax, and historical polls show overwhelming opposition (80%+). In 2019, voters approved Amendment 1 making it even harder—requiring 2/3 majority in both legislative chambers before a referendum can even occur.
Yes, absolutely. Federal income tax applies everywhere in the US regardless of state. You'll pay federal income tax (10-37% based on income) plus FICA (Social Security 6.2% + Medicare 1.45%). Texas just eliminates the additional state income tax layer.
For income earners, Texas is among the best. No income tax plus no estate/inheritance tax is highly favorable. However, "best" depends on your situation—property owners face higher property taxes, and overall tax burden varies by income level and lifestyle. For renters and high earners, Texas is excellent.
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Last Updated: January 2025 | Projected 2026 Tax Rates