1. What Is Texas Income Tax?

Texas is one of the few states in the United States that does not impose a state income tax on individuals. This means residents of Texas pay $0 in state income tax regardless of their income level or filing status.

2. How Does Texas Taxation Work?

While Texas has no state income tax, the state government generates revenue through other means:

• Sales Tax: Texas has a state sales tax rate of 6.25%
• Property Tax: Local governments levy property taxes
• Franchise Tax: Business tax on certain entities
• Other Fees: Various state fees and licenses

3. Other Taxes in Texas

Sales Tax: The state sales tax rate is 6.25%, but local jurisdictions can add up to 2% more, making the total maximum sales tax rate 8.25%.

Property Tax: Texas has some of the highest property tax rates in the nation, though there are no state property taxes - only local.

Federal Taxes: Texas residents still pay federal income tax, Social Security tax, and Medicare tax.

4. Using This Calculator

Purpose: This calculator demonstrates that Texas residents pay $0 in state income tax regardless of income level or filing status.

Note: While you may enter different income amounts and filing statuses, the Texas state income tax will always be $0.

5. Frequently Asked Questions (FAQ)

Q1: Does Texas really have no income tax?
A: Yes, Texas is one of the few states with no state income tax for individuals.

Q2: What taxes do Texans pay instead?
A: Texans pay sales tax, property tax, and various fees instead of state income tax.

Q3: Are there any exceptions to the no income tax rule?
A: No, all individuals regardless of income level pay $0 Texas state income tax.

Q4: How does Texas compare to other states?
A: Texas is one of 9 states with no state income tax, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming.

Q5: Do I still need to file a Texas state tax return?
A: No, since there's no state income tax, individuals don't need to file state income tax returns in Texas.