What Texas taxes instead
Texas trades income tax for some of the highest property taxes in the country.
- Property tax. Texas levies no state property tax, but school districts, counties, cities, and special districts each tax homes and businesses at their own rates, and those local levies fund schools and local government. For a homeowner they can outweigh what a moderate state income tax would have cost, so "no income tax" does not automatically mean a lower total burden.
- Sales tax. A 6.25% state rate plus up to 2% in local add-ons caps the combined rate at 8.25%, the rate in most large cities, making consumption the second pillar of state revenue.
- Franchise (margin) tax. Texas taxes business margin rather than personal or corporate income. Small businesses below the revenue threshold owe nothing, which is part of the state's relocation pitch.
None of this touches your paycheck — the calculator above shows federal tax and FICA only, because that is genuinely all Texas withholds. The catch is that a bigger paycheck is not the same as a lower total burden: what the state skips on income it generally collects somewhere else. Compare against a state that does tax income using the state paycheck calculators.
Top Cities in Texas
The largest cities in Texas, by U.S. Census Bureau estimate for July 1, 2025:
- Houston — 2,397,315 residents
- San Antonio — 1,548,422 residents
- Dallas — 1,329,491 residents
- Fort Worth — 1,028,117 residents
- Austin — 1,002,632 residents
How Texas Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Texas |
|---|---|---|
| Texas (here) | $61,593 | — |
| New Mexico | $59,233 | -$2,359 |
| Oklahoma | $58,763 | -$2,830 |
| Arkansas | $59,305 | -$2,287 |
| Louisiana | $59,729 | -$1,864 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What is the Texas state income tax rate?
Texas has no state income tax on wages. Your mandatory paycheck deductions are federal income tax (10–37% depending on income), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200K).
How much is taken out of my paycheck in Texas?
For a single filer earning $75,000 in Texas (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA — leaving about $61,593 take-home (17.9% effective tax rate). Texas has no state paid-leave premium and no local income tax, so those are the only deductions required by law.
Does Texas take state tax out of my paycheck?
No. Texas has no state income tax and no state disability or paid-leave program, so your paycheck shows only federal income tax, Social Security, and Medicare.
How much is taken out of a bonus in Texas?
Usually the federal flat 22% plus 7.65% for Social Security and Medicare, and nothing for the state. A $10,000 bonus paid separately arrives as about $7,035.
When do I get my final paycheck in Texas?
Within six calendar days if you were laid off or fired, or on the next regular payday if you quit or retired.
Does Texas pay overtime after 8 hours in a day?
No. Neither Texas nor federal law requires daily overtime. Time and a half is owed only for hours over 40 in a workweek.