Texas Income Tax CalculatorNo State Tax on Wages

What does this come to under the current IRS rules?

Texas does not tax wage income. What does apply instead, and what you still owe federally.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Texas income tax
$0
Texas does not tax wage income
Income entered
$85,000
Drawn to one scale
Texas income tax$0
Income entered$85,000
All results
MeasureResult
Texas income tax$0
Income entered$85,000
Why
Texas has no individual income tax on wages.
How this was worked out
Work shownrecomputed as you type
Texas income tax on wages = $0

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

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

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.

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