Overview
Texas uses no state income tax on wages. This means residents of Texas owe no state income tax on their wages, salaries, or other earned income. You still pay federal income tax and FICA (Social Security and Medicare), but the absence of state income tax gives Texas workers a significant take-home pay advantage.
2025 Tax Rates
Texas levies 0% state income tax on wages. There is no state income tax return to file for wages earned in Texas.
Who Must File in Texas?
Because Texas has no income tax on wages, residents generally do not need to file a state income tax return for wage income. There are no state withholding requirements for wages.
How Texas Tax Affects Your Paycheck
With no state income tax, your Texas paycheck withholding includes only federal income tax, Social Security (6.2%), and Medicare (1.45%). On a $75,000 salary, this saves roughly $2,000–$5,000 per year compared to living in a state with a 3–7% income tax rate.
Tips to Reduce Your Texas Tax Bill
- Maximize retirement contributions (401k, IRA) to reduce federal taxable income
- Use an HSA if you have a high-deductible health plan — contributions are federal tax-free
- Track investment income — Washington has a capital gains tax on high earners; verify your state’s rules
- Verify residency rules if you work remotely for an out-of-state employer
Filing Deadlines
Texas has no state income tax return to file for wages.
How Texas Compares to Neighboring States
Texas borders New Mexico, Oklahoma, Arkansas, and others. Unlike most of its neighbors, Texas has no state income tax, making it one of the most tax-friendly states in its region. Workers crossing the border for jobs in Texas from higher-tax states can see a meaningful increase in take-home pay.
Use Our Calculator
Want to see your exact Texas take-home pay? Use our free US Paycheck Calculator — select Texas from the state dropdown and enter your salary, filing status, and dependents for a complete tax breakdown.
Tax rates based on 2025 data. Laws change frequently — verify with the Texas Department of Revenue or a tax professional.