How Texas Income Tax Works
Texas has no state income tax on wages. Your only income tax obligation is federal — there's no Texas return required for wage income, and your taxable income at the state level is effectively zero.
For most Texas residents, the 2026 federal standard deduction ($16,100 single, $32,200 married filing jointly) is applied first; only income above that gets taxed at federal rates of 10% to 37%. Use the calculator above to see how your specific salary maps to brackets.
Texas has no income tax, but its property taxes (about 1.6% of home value, second-highest in the nation) and 6.25% sales tax offset much of the apparent benefit.
Energy (oil & gas), tech (Austin), aerospace (Houston), finance, and a fast-growing semiconductor industry.
How Texas Income Tax Compares to Neighboring States
Total income tax (federal + state) on a $100,000 annual salary in 2026, single filer using the standard deduction:
| State | State Tax | Total Income Tax | vs. Texas |
|---|---|---|---|
| Texas (here) | $0 | $13,170 | — |
| New Mexico | $3,623 | $16,793 | +$3,623 |
| Oklahoma | $3,955 | $17,125 | +$3,955 |
| Arkansas | $3,721 | $16,891 | +$3,721 |
| Louisiana | $2,625 | $15,795 | +$2,625 |
A negative "vs." figure means that state collects less total income tax than Texas. Federal portion is identical across states; only state tax varies.
Frequently Asked Questions
What is the Texas state income tax rate for 2026?
Texas has no state income tax on wages — the rate is 0% across all income levels. The only federal income tax applies, with brackets ranging from 10% to 37% depending on your taxable income.
How much income tax will I pay in Texas on a $100,000 salary?
For a single filer earning $100,000 in Texas in 2026, expect approximately $13,170 in federal income tax — for a total income tax of about $13,170, an effective rate of 13.2%. This excludes FICA (Social Security and Medicare), which adds roughly 7.65% on top.
What's the difference between effective and marginal tax rate?
Your marginal rate is the rate applied to your last dollar of taxable income — the bracket your top dollar lands in. Your effective rate is your total income tax divided by your total income — the average rate across everything you earned. Effective is always lower than marginal because lower brackets cover the first portions of your income at lower rates.
Does Texas tax retirement income, Social Security, or capital gains?
Federal rules: long-term capital gains use preferential rates (0%, 15%, 20%) — see our Capital Gains Tax Calculator. Social Security is taxable federally if your combined income exceeds certain thresholds. Texas has no state income tax, so retirement income, Social Security, and capital gains are not taxed at the state level either.
How is this Texas income tax estimate calculated?
We apply the 2026 federal IRS tax tables (10%–37% across seven brackets) to your taxable income (gross income minus the standard deduction). The calculator handles wages, self-employment income (with SE tax and the deductible half), and other income; you can also switch to itemized deductions. Tax credits, AMT, and preferential capital gains rates are not modeled — this is an estimate of ordinary income tax only.