The formulas
- Texas income tax on wages = $0
How it works
Tax year: 2026.
Texas has no individual income tax. Businesses with total revenue above the no-tax-due threshold pay the franchise (margin) tax.
Sales and use tax and local property taxes are the main taxes individuals see.
Local taxes: Texas cities and counties do not tax income.
Federal income tax, Social Security and Medicare still apply; see the federal income tax and FICA calculators.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Does Texas have a state income tax?
No. Texas has no individual income tax. Businesses with total revenue above the no-tax-due threshold pay the franchise (margin) tax.
Is the Texas franchise tax an income tax on owners?
No. It is a tax on the entity's taxable margin; owners do not pay Texas tax on wages or distributions.
Do I still pay federal tax living in Texas?
Yes. Federal income tax, Social Security and Medicare apply wherever you live.
Sources
- Texas Constitution, Article VIII, Section 24-a (no tax on the net incomes of individuals)
- Texas Comptroller, franchise tax
- Texas Comptroller, taxes
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.