The income tax rate in Texas is 0% and there are a total of nine states in the US that have no income tax.
The attraction to move from another state or relocate from another country to Texas is very appealing for many reasons, but the fact that the income tax rate in Texas is 0% is even more enticing.
Taxes are a certainty that legally, you must pay, and we are going to specifically cover the state income tax in Texas when you take into consideration the other taxes you will be liable to pay on your income if you reside in Texas.
Income tax percentage in Texas
We are not trying to dampen anyone’s hopes of not paying any tax in Texas, but even though the income tax percentage in Texas is 0%, you will still have to pay taxes on your income whether you work for someone else or own a Texas business or franchise.
If you live and work in Texas your paycheck will reflect 0% for income tax deductions, but you will pay other Federal taxes that will affect your take-home pay. If, as a business owner you pay yourself a salary through payroll or take a monthly, quarterly, or annual distribution/dividend from the net profit your business generates, you will still be liable to pay some tax.
Having a 0% income tax percentage in Texas is true, but since the US government is made up of local, state, and federal jurisdictions, you can rest assured that the government is going to tax you in one form or another on your income.
This information gives you an overview of the likely tax you will pay on your earnings in Texas. There are multiple factors that affect your tax liability such as being single or married, having children and/or dependents, and other circumstances and deductions, and there is never a one-size-fits-all scenario, even though there is no income tax in Texas. You should always seek the help of a tax professional when filing taxes.
Just remember that since many people ask is there state income tax in Texas, just because it is set at 0%, it does not mean that you will not be liable to pay any taxes on your earnings – it might just mean you will pay less than if you lived or worked in another state with a higher income tax rate than 0%.
You should also consider that while Texas has no income tax, you are still liable to pay Texas sales tax, and the state imposes quite significant property taxes on those that own their own homes or commercial properties.
What is the Income Tax Rate in Texas
Although the income tax rate in Texas is 0%, we have provided you with various scenarios of the tax you will pay on your income as a resident of Texas. The following information should be used for approximation purposes and does not represent legal authority, or the exact amount of Texas state income tax (including Federal and FICA tax) that you will be liable for – it is just a guide based on information from the IRS and other sources.
| Monthly Gross Wage | FICA Taxes (7.65%) | Federal Income Tax | No Income Tax in Texas | Net Monthly Income | Annual Gross Income | Annual Net Income |
|---|---|---|---|---|---|---|
| $1,200.00 | $91.80 | $16.67 | $0.00 | $1,091.53 | $14,400.00 | $13,098.36 |
| $1,256.67 | $96.14 | $22.33 | $0.00 | $1,138.20 | $15,080.04 | $13,658.46 |
| $1,500.00 | $114.75 | $46.67 | $0.00 | $1,338.58 | $18,000.00 | $16,062.96 |
| $2,000.00 | $153.00 | $99.54 | $0.00 | $1,747.46 | $24,000.00 | $20,969.52 |
| $2,500.00 | $191.25 | $159.54 | $0.00 | $2,149.21 | $30,000.00 | $25,790.52 |
| $3,000.00 | $229.50 | $219.54 | $0.00 | $2,550.96 | $36,000.00 | $30,611.52 |
| $3,500.00 | $267.75 | $279.54 | $0.00 | $2,952.71 | $42,000.00 | $35,432.52 |
| $4,000.00 | $306.00 | $339.54 | $0.00 | $3,354.46 | $48,000.00 | $40,253.52 |
| $4,500.00 | $344.25 | $411.83 | $0.00 | $3,743.92 | $54,000.00 | $44,927.04 |
| $5,000.00 | $382.50 | $521.83 | $0.00 | $4,095.67 | $60,000.00 | $49,148.04 |
| $5,500.00 | $420.75 | $631.83 | $0.00 | $4,447.42 | $66,000.00 | $53,369.04 |
| $6,000.00 | $459.00 | $741.83 | $0.00 | $4,799.17 | $72,000.00 | $57,590.04 |
| $6,500.00 | $497.25 | $851.83 | $0.00 | $5,150.92 | $78,000.00 | $61,811.04 |
| $7,000.00 | $535.50 | $961.83 | $0.00 | $5,502.67 | $84,000.00 | $66,032.04 |
| $7,500.00 | $573.75 | $1,071.83 | $0.00 | $5,854.42 | $90,000.00 | $70,253.04 |
| $8,000.00 | $612.00 | $1,181.83 | $0.00 | $6,206.17 | $96,000.00 | $74,474.04 |
| $8,500.00 | $650.25 | $1,298.63 | $0.00 | $6,551.12 | $102,000.00 | $78,613.44 |
| $9,000.00 | $688.50 | $1,418.63 | $0.00 | $6,892.87 | $108,000.00 | $82,714.44 |
| $9,500.00 | $726.75 | $1,538.63 | $0.00 | $7,234.62 | $114,000.00 | $86,815.44 |
| $10,000.00 | $765.00 | $1,658.63 | $0.00 | $7,576.37 | $120,000.00 | $90,916.44 |
| $11,000.00 | $841.50 | $1,898.63 | $0.00 | $8,259.87 | $132,000.00 | $99,118.44 |
| $12,000.00 | $885.45 | $2,138.63 | $0.00 | $8,975.92 | $144,000.00 | $107,711.04 |
Income Tax Percentage in Texas
The above table provides you with a broad range of different Texas State income tax rate scenarios. The income tax rates in the table are based on a single taxpayer (not married) claiming one personal exemption.
The Texas State income tax rates in the table reflect almost a worst-case scenario for a US taxpayer because those that are married and have dependents can typically take advantage of other deductions, which would effectively make the federal income tax you pay, less than what you see in the table.
Again, you must always consult a professional when it comes to calculating your Texas tax liability, since other factors may affect the amount of income tax you pay on your earnings in Texas. The income tax percentage in Texas is 0% as noted on the table, but you are still responsible for paying Social Security (6.2%) and Medicare (1.45%), totaling 7.65%.
You are also responsible for paying Federal Income Tax regardless of whether you reside in Texas and its 0% income tax rate. To see a list of states by income tax rate have a look at our page that includes a table with all the rates and links to specific income tax in each state.
