Texas is one of just nine states with no state income tax, meaning you keep more of your paycheck compared to most other states. Our free Texas paycheck calculator shows your exact take-home pay after federal taxes and FICA deductions. Whether you're considering a move to the Lone Star State or planning your budget, get accurate results based on 2025 tax rates.
Why Texas Has No State Income Tax
Texas is one of nine states that doesn't impose a state income tax on residents. Instead, the state generates revenue through:
- Sales Tax: State sales tax of 6.25% plus local taxes (total typically 8-8.5%)
- Property Tax: Higher property tax rates than most states
- Business Taxes: Franchise tax on businesses and corporations
- Oil and Gas Revenue: Severance taxes on natural resource extraction
Sample Texas Paycheck Calculations
Here's how much you'll take home at different salary levels in Texas:
$50,000 Annual Salary
- Gross Pay: $50,000
- Federal Tax: $4,617
- TX State Tax: $0
- FICA Taxes: $3,825
- Take-Home Pay: $41,558 (83.1%)
- Monthly Net: $3,463
- Bi-weekly Net: $1,598
$75,000 Annual Salary
- Gross Pay: $75,000
- Federal Tax: $8,739
- TX State Tax: $0
- FICA Taxes: $5,738
- Take-Home Pay: $60,523 (80.7%)
- Monthly Net: $5,044
- Bi-weekly Net: $2,328
$100,000 Annual Salary
- Gross Pay: $100,000
- Federal Tax: $14,260
- TX State Tax: $0
- FICA Taxes: $7,650
- Take-Home Pay: $78,090 (78.1%)
- Monthly Net: $6,508
- Bi-weekly Net: $3,004
Texas vs. High-Tax States Comparison
See how much more you keep in Texas compared to states with income tax:
Texas ($75k salary)
- Take-home: $60,523
- Effective rate: 19.4%
- State tax: $0
- Advantage: More take-home pay
California ($75k salary)
- Take-home: $55,835
- Effective rate: 25.6%
- State tax: $4,688
- TX Saves: $4,688/year
New York ($75k salary)
- Take-home: $56,625
- Effective rate: 24.5%
- State tax: $3,898
- TX Saves: $3,898/year
Florida ($75k salary)
- Take-home: $60,523
- Effective rate: 19.4%
- State tax: $0
- Same as Texas
Understanding Texas Paycheck Deductions
Federal Income Tax
Texas residents pay federal income tax based on the 2025 federal tax brackets (10% to 37%). The federal standard deduction for 2025 is $14,600 for single filers and $29,200 for married filing jointly.
No Texas State Income Tax
Texas has no state income tax, which is enshrined in the state constitution. This means:
- No state tax withholding from your paycheck
- No state tax return to file
- More take-home pay compared to most other states
- Simplified tax planning and preparation
FICA Taxes (Same as All States)
- Social Security Tax: 6.2% on income up to $168,600 (2025 limit)
- Medicare Tax: 1.45% on all income
- Additional Medicare Tax: 0.9% on income over $200,000 (single filers)
Texas Cost of Living Benefits
Beyond no state income tax, Texas offers additional financial advantages:
- Housing: Generally lower housing costs than coastal states
- Energy: Lower electricity and gas costs due to local production
- Transportation: No state vehicle inspection fees in most areas
- Business Climate: Pro-business environment attracts employers
Frequently Asked Questions
Will Texas ever add a state income tax?
Very unlikely. The Texas Constitution prohibits a state income tax without a constitutional amendment approved by voters. Any attempt to add an income tax would face significant political and constitutional hurdles.
How does Texas fund public services without income tax?
Texas relies on sales taxes, property taxes, business franchise taxes, and oil/gas severance taxes. The state also benefits from a strong economy and population growth that increases the tax base.
Are there any local income taxes in Texas?
No, Texas cities and counties cannot impose local income taxes. However, local sales taxes and property taxes vary by location.
Do I need to file a Texas state tax return?
No, since Texas has no state income tax, residents don't file state tax returns. You only need to file federal returns.
Tax Planning Tips for Texas Residents
Maximize Federal Tax Savings
Since you don't have state taxes to offset, focus on federal tax strategies like 401(k) contributions, HSAs, and itemized deductions if they exceed the standard deduction.
Consider Roth Retirement Accounts
With no state income tax now, Roth IRAs and 401(k)s can be attractive since you won't pay state taxes on withdrawals in retirement either.
Plan for Property Taxes
Texas has higher property tax rates than most states. Factor this into your housing budget and consider homestead exemptions to reduce your burden.
Ready to Calculate Your Texas Take-Home Pay?
Use our calculator above to see exactly how much you'll keep from your paycheck in Texas.