Texas Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Texas. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
Texas is one of nine states with no personal income tax. The state relies heavily on sales tax and property tax revenue instead. This makes Texas particularly attractive for high earners.
Sales Tax
Groceries (unprepared food) are exempt. Prescription medicine and OTC drugs are exempt.
Texas saves residents thousands compared to high-tax states like California or New York. However, Texas has relatively high property tax rates (averaging ~1.60%) and sales tax to compensate.
Does Texas have a state income tax?
No. Texas has no personal state income tax. It is one of nine U.S. states that do not levy an income tax on individuals.
What is the sales tax in Texas?
Texas has a 6.25% state sales tax rate. With local taxes, the average combined rate is about 8.20%.
How does Texas fund its government without income tax?
Texas relies primarily on sales tax, property tax, and oil and gas severance taxes. The state has relatively high property tax rates to compensate for the lack of income tax.