Texas Tax Calculator
Texas has no state income tax, making it one of the most tax-friendly states in the US. Calculate property taxes, sales taxes, and other Texas-specific taxes with our comprehensive calculator.
Tax Summary
Texas Tax Facts
Texas Tax Advantages
Understanding Texas Taxes
Texas is known for its business-friendly tax environment. The state has no personal income tax, no corporate income tax, and no estate tax. However, Texas does have property taxes and sales taxes that can be significant.
Texas Tax Structure
No Income Tax
Texas does not tax personal income, making it attractive for high earners and businesses.
- No state income tax
- No corporate income tax
- No estate tax
- No inheritance tax
Property Taxes
Property taxes are a major revenue source for Texas local governments.
- Average 1.8% of property value
- Set by local taxing entities
- Homestead exemptions available
- School taxes are significant
Sales Taxes
State sales tax of 6.25% plus local taxes.
- State rate: 6.25%
- Local rates vary by location
- Combined rates up to 8.25%
- Some items are exempt
Property Tax Calculation
Property Tax Formula
Property Tax = (Appraised Value × Appraisal Ratio - Exemptions) × Tax Rate
Appraised Value
Market value determined by appraisal district
Reappraised every year or two
Tax Rate
Set by local taxing entities
Includes school, city, county taxes
Varies by location
Sales Tax by County
| County | State Rate | Local Rate | Combined Rate | Major Cities |
|---|---|---|---|---|
| Harris | 6.25% | 2.00% | 8.25% | Houston |
| Dallas | 6.25% | 2.00% | 8.25% | Dallas |
| Tarrant | 6.25% | 2.00% | 8.25% | Fort Worth |
| Bexar | 6.25% | 2.00% | 8.25% | San Antonio |
| Travis | 6.25% | 2.00% | 8.25% | Austin |
Property Tax Exemptions
Homestead Exemptions
- $100,000 exemption for school taxes
- $25,000 general homestead exemption
- Additional exemptions for seniors/disabled
- Over-65 exemption: up to $10,000
Other Exemptions
- Disabled veterans exemption
- Surviving spouse exemption
- Religious organization exemption
- Non-profit organization exemption
Business Taxes in Texas
Texas is known for its business-friendly tax environment. The state has no corporate income tax, no personal income tax, and no estate tax. However, businesses do pay franchise tax and other local taxes.
| Tax Type | Rate/Amount | Description |
|---|---|---|
| Franchise Tax | 0.75% of margin | Replaces corporate income tax |
| Sales Tax | 6.25% + local | On taxable sales |
| Property Tax | Local rates | On business property |
Tax Advantages of Living in Texas
Why Texas is Tax-Friendly
For Individuals
- No state income tax on wages
- No state income tax on investments
- No estate tax
- Reasonable property taxes
For Businesses
- No corporate income tax
- No franchise tax on small businesses
- Business-friendly regulations
- Right-to-work state
Key Takeaways for Texas Taxes
- Texas has no state income tax - one of only 9 states
- Property taxes are higher than average (1.8% of home value)
- Sales tax is 6.25% state + up to 2% local
- Homestead exemptions help reduce property taxes
- No corporate income tax attracts businesses
- No estate or inheritance tax
- Franchise tax replaces corporate income tax
- Texas is consistently ranked as business-friendly