Texas Retirement Tax Calculator 2026

Q: Does Texas tax Social Security benefits?

No. Texas does not tax Social Security benefits or any other income. Your SS benefits may still be partially taxed at the federal level, but Texas imposes zero state tax.

Q: How do Texas property taxes affect retirees?

Texas has high property taxes averaging 1.60% — about double Florida's 0.80%. However, Texas freezes school district property taxes once you turn 65. On a $300K home, you'd pay about $4,800/year in Texas vs $2,400 in Florida. The school tax freeze helps but doesn't fully offset the higher rates.

Q: Is Texas or Florida better for retirement taxes?

Both charge $0 state income tax on all retirement income. The difference is property tax: Texas averages 1.60% vs Florida's 0.80%. On a $300K home, that's $2,400/year more in Texas. Florida also has a $50,000 homestead exemption and Save Our Homes 3% cap. Texas freezes school taxes at 65 but has higher overall rates.

Q: Does Texas have an estate or inheritance tax?

No. Texas has no estate tax and no inheritance tax, making it fully tax-friendly for retirees and their heirs alongside the zero income tax.

$0 state income tax on retirement — but property taxes avg 1.60%. School taxes freeze at 65.

Enter your retirement income sources — Texas taxes none of them

Social Security benefit (annual)

Your annual Social Security benefit before any federal tax

Pension income (annual)

Annual pension from employer, government, or military

401(k)/IRA withdrawals (annual)

Total annual withdrawals from 401(k), 403(b), IRA, etc.

Other income (annual)

Interest, dividends, rental income, part-time work, etc.

Filing status

Does not affect TX state tax ($0 regardless) but shown for reference

Age

Age 65+ qualifies for school property tax freeze in Texas

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Retirement tax calculators for other states:

Florida Social Security Tax Retirement Calculator TX Property Tax

How to Use This Calculator

Tax on My Retirement Income tab

Enter your Social Security benefit, pension income, 401(k)/IRA withdrawals, and any other income. Select your filing status and age. The calculator shows $0 Texas state tax on every line item because Texas has no state income tax. This tab confirms that your total state tax burden is zero regardless of how much retirement income you have.

What's Exempt? tab

See a visual checklist of every income type that Texas exempts from state tax. This includes Social Security, pensions, 401(k), IRA, military retirement pay, and investment income. The tab also highlights what Texas does not exempt you from: high property taxes averaging 1.60% and sales tax averaging 8.20%. It notes that school district property taxes are frozen once you turn 65.

Compare States tab

Enter your retirement income and home value to compare Texas against Florida, California, and New York. The comparison covers both state income tax on retirement and property tax. Texas and Florida both charge $0 income tax, but Texas property taxes are roughly double Florida's. California and New York tax pensions and 401(k) withdrawals at the state level.

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The Rules

Texas State Income Tax on Retirement Income = $0

Texas has NO state income tax. Period.
This applies to ALL income types:
  Social Security benefits: $0 state tax
  Pension income: $0 state tax
  401(k)/403(b) withdrawals: $0 state tax
  IRA distributions (Traditional + Roth): $0 state tax
  Military retirement pay: $0 state tax
  Investment income: $0 state tax

Also: No estate tax. No inheritance tax.

The catch:
  Property tax: avg 1.60% (among highest in the US)
  School district taxes: FROZEN at 65 (no increases after that)
  Other property tax components: NOT frozen

Texas is one of 9 US states with no state income tax (along with Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, Wyoming, and Alaska). Unlike some of those states, Texas also has no estate or inheritance tax. The primary tax cost for Texas retirees is property tax, which averages 1.60% of assessed home value -- roughly double the national average and double Florida's rate.

Example

Robert — Retired in Austin, TX at age 68

Robert has $65,000 in annual retirement income: $30,000 Social Security, $20,000 pension, and $15,000 from 401(k) withdrawals. He owns a home worth $300,000.

Texas state income tax

Social Security benefit$30,000

TX state tax on SS$0

Pension income$20,000

TX state tax on pension$0

401(k) withdrawals$15,000

TX state tax on 401(k)$0

Total retirement income$65,000

Total TX state income tax$0

But property tax tells a different story

Home value$300,000

TX property tax (1.60%)$4,800/yr

FL property tax (0.80%)$2,400/yr

TX vs FL difference+$2,400/yr in TX

Robert pays $0 Texas state income tax on his $65,000 retirement income. But his $300,000 home costs $4,800/year in property taxes -- $2,400 more than the same home would cost in Florida. Since he is over 65, his school district taxes are frozen and will not increase even if property values rise. Federal taxes still apply separately.

FAQ

Is retirement income taxed in Texas? ▼

No. Texas has no state income tax, so all retirement income is completely tax-free at the state level. This includes Social Security benefits, pension income, 401(k) and IRA withdrawals, military retirement pay, investment income, and any other type of income. There is no income threshold, no age requirement, and no filing status limitation -- everyone pays $0 state income tax in Texas.

Does Texas tax Social Security benefits? ▼

No. Texas does not tax Social Security benefits at the state level. However, your Social Security may still be partially taxable at the federal level. If your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000 for single filers or $32,000 for married filing jointly, up to 85% of your SS benefits may be subject to federal income tax. Texas has no say in this -- it is purely a federal matter.

How do Texas property taxes affect retirees? ▼

Texas property taxes average 1.60% of assessed home value, which is among the highest in the US and roughly double the national average. On a $300,000 home, that is about $4,800 per year. For retirees, there are two key benefits: (1) a mandatory homestead exemption of at least $100,000 for school taxes if you are 65 or older, and (2) a school district property tax freeze once you turn 65 -- your school taxes will never increase above the amount owed the year you turned 65, even if property values rise. County and city taxes are not frozen.

Is Texas or Florida better for retirement taxes? ▼

Both Texas and Florida charge $0 state income tax on all retirement income, so the income tax comparison is a tie. The real difference is property tax. Texas averages 1.60% while Florida averages 0.80%. On a $300,000 home, you would pay about $4,800/year in Texas vs $2,400/year in Florida -- a $2,400 annual difference. Florida also offers a $50,000 homestead exemption and the Save Our Homes 3% annual assessment cap. Texas freezes school taxes at 65 but the overall rate remains higher. Neither state has estate or inheritance tax.

Does Texas have an estate or inheritance tax? ▼

No. Texas has no estate tax and no inheritance tax. When a Texas resident passes away, their heirs do not owe any state-level tax on the estate or the inheritance they receive. The federal estate tax still applies if the total estate exceeds the federal exemption ($13.99 million per individual in 2026), but Texas adds nothing on top of that. This makes Texas one of the most tax-friendly states for passing wealth to the next generation.

What is the school property tax freeze at age 65? ▼

In Texas, once you turn 65 and have a homestead exemption on your primary residence, your school district property taxes are frozen at the amount you owed that year. Even if your home's assessed value increases, your school taxes will not go up. This freeze transfers if you move to a new home in Texas -- your new school taxes are capped at the same percentage of value. Note that only the school district portion is frozen. County, city, and special district taxes can still increase.

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