How to Use This Calculator
Enter your income and filing status. Since Texas has no state income tax, the calculator focuses on your federal tax burden — showing your federal income tax, FICA taxes (Social Security and Medicare), and your total take-home pay.
The most useful thing to try? Compare your take-home pay in Texas to what you'd keep in a state with income tax. The savings can be substantial, especially at higher income levels.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which federal tax brackets and deductions apply. Options include single, married filing jointly, married filing separately, and head of household.
Texas Has No State Income Tax
Texas is one of the most well-known no-income-tax states, and the Texas Constitution explicitly prohibits a state income tax (voters approved this amendment in 2019). Texas is the largest state by population without an income tax, making it a major destination for individuals and businesses relocating from high-tax states. The state funds its government through sales tax (6.25% state rate plus up to 2% local), property taxes (which are among the highest in the nation, averaging about 1.60% of home value), and oil and natural gas production taxes.
Why This Calculator Still Matters
Even without state income tax, federal taxes still claim a substantial share of your earnings. This calculator shows your complete take-home pay after federal income tax and FICA. Given Texas's high property taxes, it's also worth comparing total tax burden (not just income tax) when evaluating a move. Someone moving from California to Texas might save on income tax but pay more in property tax depending on their home value.
Other Taxes in Texas
No state income tax (constitutionally prohibited). Sales tax of 6.25% state plus up to 2% local. Property taxes are high — averaging 1.60% of assessed value, with some areas exceeding 2.5%. Texas also has a franchise (margin) tax on businesses. No estate or inheritance tax.
The Full Tax Picture
No income tax doesn't mean no taxes. When evaluating your total tax burden in Texas, consider the complete picture: federal income tax, FICA taxes (7.65% for employees), sales taxes, property taxes, and any other local taxes or fees. Some no-income-tax states make up the revenue through higher sales or property taxes.
For example, on a $75,000 salary, you'd still owe roughly $8,000-$12,000 in federal income tax (depending on your filing status and deductions) plus about $5,738 in FICA taxes. That's $14,000-$18,000 in federal taxes alone — the state income tax savings from living in Texas is money you keep on top of this.
How to Use This Calculator Strategically
Quantify your savings. Run your income through this calculator, then compare it to a state with income tax. The difference is your annual savings from living in Texas.
Plan for federal taxes. Without state tax to worry about, focus on optimizing your federal tax situation through retirement contributions, deductions, and credits.
Compare total cost of living. Income tax savings can be offset by higher costs in other areas (housing, sales tax, property tax). Consider the full picture when evaluating Texas versus other states.
Model retirement income. If you're retired or planning retirement in Texas, see how your Social Security, pension, and investment income are taxed at the federal level.
References
- Texas Comptroller of Public Accounts. (2025). Tax Information.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rules change regularly. Consult a qualified tax professional for guidance specific to your situation.