Estimate your take-home pay in Texas for 2026. Texas does not levy a state income tax, so your paycheck is only subject to federal income tax, Social Security, and Medicare withholdings. This can result in significantly higher take-home pay compared to states with income taxes.
Texas Tax Snapshot
- State Income Tax
- None
- Sales Tax (state + local avg)
- 8.20%
- Avg Property Tax Rate
- 1.68%
- Median Home Value
- $301,600
- State Minimum Wage
- $7.25/hr
Did You Know?
Texas prohibits a state income tax but has some of the highest property tax rates.
How Texas Taxes Affect Your Paycheck
Since Texas has no state income tax, your paycheck deductions are limited to federal income tax, Social Security (6.2%), and Medicare (1.45%). This tax advantage means workers in Texas typically take home more of their gross pay. The state minimum wage is $7.25 per hour, and the average property tax rate is 1.68% on homes valued around $301,600.
Texas also levies a combined state and average local sales tax of 8.20%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.