Texas has no tax on wage income, the 14th highest combined sales tax (8.20%) and the federal $7.25 minimum wage as of 2026.
$7,965 a year: that is roughly what a Texas homeowner earning $75,000 pays in state income tax ($0), sales tax on $25,000 of purchases ($2,050), property tax on a $300,000 house ($4,200) and electricity at 900 kWh a month ($1,715).
Texas does not tax wages. No individual income tax on wages or salaries. A worker earning $50,000 or $100,000 owes federal income tax and FICA but no Texas income tax. Source: Tax Foundation, rates as of January 1, 2026.
Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Texas's brackets above. Open the paycheck calculator set to Texas to add a 401(k), change pay frequency or filing status.
| Salary | Federal tax | FICA | State tax | Take-home (year) | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $0 | $42,355 | $1,629 |
| $75,000 | $7,670 | $5,738 | $0 | $61,592 | $2,369 |
| $100,000 | $13,170 | $7,650 | $0 | $79,180 | $3,045 |
The state rate is 6.25% and local governments add 1.95% on average, for a combined 8.20%, 14th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $82 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.
Texas follows the federal minimum of $7.25 an hour (the Texas rate equals the federal minimum), which is $15,080 a year for full-time work (2,080 hours). Source: U.S. Department of Labor, July 1, 2026.
Homeowners in Texas paid property taxes equal to 1.40% of home value on average, the 7th highest effective rate (median state 0.79%). On a $300,000 home that is about $4,200 a year, or $350 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.
Residential electricity averaged 15.88¢ per kWh in July 2026, the 22nd lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $143 before fixed charges. Source: U.S. EIA, July 2026 data.
Among the 4 states it borders, Texas has the lowest top income tax rate of its neighbors (0%) and the highest property tax rate of its neighbors (1.40%).
| State | Top income tax | Sales tax | Min. wage | Property tax | Electricity |
|---|---|---|---|---|---|
| Texas | None | 8.20% | $7.25 | 1.40% | 15.88¢ |
| Arkansas | 3.9% | 9.48% | $11.00 | 0.56% | 14.33¢ |
| Louisiana | 3% | 10.13% | $7.25 | 0.55% | 12.72¢ |
| New Mexico | 5.9% | 7.68% | $12.00 | 0.63% | 16.09¢ |
| Oklahoma | 4.5% | 9.06% | $7.25 | 0.79% | 14.35¢ |
Texas figures use statewide averages and skip credits, exemptions and local income taxes; check Texas revenue and labor department sites before filing or hiring.