Texas Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Texas resident in 2026, in one place. Texas is one of the states with no personal income tax, so residents keep everything left after federal income tax and FICA. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Texas layer is what makes your net pay different from a neighbour's.
Texas is one of nine US states with zero state income tax — your entire paycheck is only reduced by federal taxes and FICA. Cost of living in Texas sits at index 92 (US average = 100), median household income is $75,780, and a one-bedroom apartment in Austin rents for around $1,650 per month. The local economy leans on energy, tech, and healthcare.
Texas calculators
Texas tax facts beyond income tax (2026)
| State sales tax | 6.25% |
| Avg. effective property tax | 1.68% of home value |
| Minimum wage 2026 | $7.25 / hour |
| Top state income tax rate | 0% (no income tax) |
| Reciprocity agreements | None |
Texas charges a 6.25% state sales tax, homeowners pay an average effective property tax of 1.68% of market value, and the minimum wage in force during 2026 is $7.25 an hour. Local add-ons cap the combined rate at 8.25%.
Texas adds no state-mandated employee payroll deduction beyond federal FICA, so your gross-to-net gap comes only from federal tax.
With no state income tax, Social Security, pensions, 401(k) and IRA withdrawals are all free of state tax here.
Commuting and remote work across Texas lines
Texas has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Texas withholding. Keep a day-count record whenever you split the year between Texas and California.
Texas vs California: $75,000 salary compared
| Measure | Texas | California |
|---|---|---|
| Annual take-home | $61,593 | $58,561 |
| Effective tax rate | 17.9% | 21.9% |
| Cost-of-living index | 92 | 142 |
| Property tax rate | 1.68% | 0.71% |
| State sales tax | 6.25% | 7.25% |
The paycheck difference is $3,031 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Austin runs about $1,650 a month, and property and sales taxes shift the balance again. See the California hub for the mirror view.