TexasSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

Texas has no state income tax — constitutionally prohibited — and is one of the largest no-income-tax economies in the world. Residents pay only federal income tax and FICA, resulting in significantly higher take-home pay than in most states. On a $100,000 salary, a Texas resident keeps approximately $6,000–$10,000 more per year than residents of moderate-tax states. Texas funds government through property taxes (relatively high — typically 1.5–2.5% of property value annually, among the highest nationally) and a 6.25% state sales tax plus local additions. Houston, Dallas, Austin, and San Antonio have no local income taxes. Texas has attracted enormous corporate relocation, particularly from California, due to the no-income-tax status and relatively business-friendly regulatory environment. The rapid growth in Austin and other Texas metros has significantly raised housing costs, partially offsetting the income tax advantage.