State reference · households

Texas taxes

No state personal income tax; sales and local property taxes remain part of a household’s tax costs.

Scope: personal income, investments, retirement and consumption taxesCurrent rules checked October 1, 2026

Year-specific amounts are labeled separately. This overview does not reproduce every bracket, credit, local levy or business tax.

Personal income

Texas does not impose a state personal income tax. Article VIII, Section 24-a of the Texas Constitution prohibits a tax on individuals’ net incomes. [1]

Investments and retirement

Texas has no personal income tax on an individual’s investment or retirement income. Business-entity taxes are a separate question and are outside this household reference. [1]

Sales and use tax

The state sales and use tax rate is 6.25% on taxable goods and services. Local jurisdictions may add up to 2%, producing a maximum combined rate of 8.25%. The Comptroller provides an address-based rate locator. [2]

Property tax

Texas has no state property tax. Local taxing units set property tax rates, and local appraisal districts determine taxable values. A household comparison needs the local assessment, applicable exemptions and taxing units rather than a single statewide property-tax percentage. [3]