Does Texas have state income tax?

No. Texas has no state income tax on wages or salary. Your paycheck deductions are only federal income tax, Social Security (6.2%), and Medicare (1.45%). This means Texas workers keep 3-8% more per paycheck than workers in states like California or New York.

How much more do you take home in Texas vs California?

On an $80,000 salary, a single filer takes home about $65,000 in Texas vs $60,500 in California — a difference of roughly $4,500/year. The gap grows at higher incomes due to California's progressive rates up to 13.3%.

What taxes do Texas residents pay?

Texas residents pay federal income tax, Social Security (6.2% up to $184,500), Medicare (1.45%), and property taxes (averaging 1.6-1.8%). There is no state income tax, no state disability insurance, and no local income taxes.

Is it cheaper to live in Texas than California or New York?

From a tax perspective, yes — Texas has no state income tax while CA charges up to 13.3% and NY up to 10.9%. However, Texas has higher property taxes (avg 1.74%) and no state-funded disability insurance. Overall, most workers keep more in Texas.

Texas Paycheck Calculator 2026

No state income tax means bigger paychecks. See your take-home pay — and how much you save vs California and New York.

2026 federal tax rates · Updated April 2026

Gross annual salary

Pay frequency

Filing status

Texas has no state income tax — your only deductions are federal and FICA.

Take-home per paycheck (biweekly)

$2,493.50

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Texas state income tax$0

Summary

Annual take-home$64,831

Effective tax rate19.0%

You keep per dollar81 cents

Calculate for other states

California New York Florida Illinois Pennsylvania Ohio Georgia North Carolina New Jersey

Texas Paycheck Calculator 2026 · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. Because Texas has no state income tax, the calculator only deducts federal income tax and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions. You'll see your per-paycheck take-home and an annual summary with your effective tax rate.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. Since Texas charges zero state tax, you'll see only three slices: federal income tax, Social Security, and Medicare. The chart also shows how many cents of every dollar you keep — a number that's consistently higher in Texas than in most other states.

Tab "Compare States"

This is the tab that makes the Texas advantage concrete. Enter any salary and see your take-home pay side-by-side: Texas vs California vs New York. The calculator computes actual state tax using progressive brackets (not flat estimates) so the comparison is accurate at every income level. You'll see exactly how many dollars per year and per month you save by living in Texas.

The Formulas

Federal Income Tax (2026 brackets, progressive):
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)

Texas State Income Tax = $0
Texas is one of nine states with no personal income tax. No local income taxes apply either.

Take-Home Pay:
Net = Gross salary - Federal tax - Social Security - Medicare - Pre-tax deductions

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. State comparison uses actual progressive bracket calculations for California and New York.

Example

Jake — Software Developer in Austin, Texas

Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions.

Gross salary (annual)$80,000

Federal income tax-$8,872

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Texas state tax$0

Annual take-home$65,008

Per paycheck (biweekly)$2,500

Jake keeps 81.3% of his gross salary. Compare: in California he'd net about $60,553, saving $4,455/year by living in Texas. In New York the gap is similar — Texas workers consistently keep more at every income level.

Frequently Asked Questions

Does Texas have any income tax at all?▼

No. Texas has no state income tax on wages, salaries, or investment income. It's one of nine states (along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming) that don't tax personal income. This applies to all residents regardless of income level — there's no threshold or phase-in. Your Texas paycheck is only reduced by federal income tax and FICA contributions.

How does Texas fund its government without income tax?▼

Texas relies heavily on property taxes and sales taxes. The average effective property tax rate is 1.60% — significantly higher than the national average of 0.99%. The state sales tax is 6.25%, and local jurisdictions can add up to 2%, bringing the combined cap to 8.25%. Texas also collects revenue from oil and gas severance taxes, franchise taxes on businesses, and motor vehicle sales taxes. For most workers, the income tax savings more than offset the higher property and sales taxes.

Do higher property taxes offset the no-income-tax advantage?▼

It depends on your home value and income. Texas property taxes average 1.74%, so on a $350,000 home you'd pay about $6,090/year. But if you earn $80,000, you're saving roughly $4,455/year vs California in income tax alone. At higher incomes the savings grow faster than property tax costs. Renters benefit most from the no-income-tax structure since they don't pay property tax directly. Use the Compare States tab to see your exact income tax savings and weigh that against your expected property tax.

How much do I actually save in Texas compared to California?▼

The savings depend on your income. At $80,000, a single filer saves roughly $4,455/year vs California (including CA's SDI). At $150,000, the savings grow to about $8,500/year because California's progressive rates hit harder at higher incomes (up to 13.3%). Use the "Compare States" tab to see the exact number for your salary. Keep in mind that cost of living (especially housing) varies significantly between Texas cities and California metros, which can offset some of the tax savings.

Is it always better to live in a no-income-tax state?▼

Not necessarily. States without income tax often compensate with higher property taxes, sales taxes, or fees. Texas property taxes average 1.60%, which on a $350,000 home means $5,600/year — vs roughly $3,465 in California at 0.99%. If you rent and don't own property, the no-income-tax advantage is clearer. Also consider that some high-tax states offer services (public transit, healthcare programs, education funding) that you might need to pay for privately in Texas. The "Compare States" tab gives you the pure tax picture — factor in your full cost of living for the complete comparison.

Related Calculators

Embed This Calculator

Add the sum.money Texas Paycheck Calculator to your website. Free, responsive, always up to date.