Texas (TX) Tax Rates — 2026

Income Tax None

Sales Tax 8.2%

Property Tax 1.6%

Income Tax

No State Income Tax

Sales Tax

State Rate6.25%

Avg Local Rate1.95%

Combined Rate8.2%

Groceries: Exempt

+1.63% vs national avg

Property Tax

Effective Rate1.6%

Median Annual Tax$3,907

+0.53% vs national avg (1.07%)

Retirement Income Tax

Social SecurityNO

PensionsEXEMPT

401(k) / IRANO

Estate & Inheritance Tax

Has Estate Tax: NO

Corporate Tax

Corporate Income Tax: None

Additional Notes

No state income tax (constitutionally prohibited). No corporate income tax — uses a Franchise (Margin) Tax on businesses. Property taxes are among the highest in the country, partly offsetting the lack of income tax.

Compare with another state:

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All Income Tax Rates
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Best for Retirees

Sources: Texas Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.