Taxes in Texas: Income, Sales, and Property Tax Guide
Top Income Tax Rate
No Income Tax
Combined Sales Tax
8.2%
Avg Property Tax Rate
1.6%
Median Household Income
$73,035
How Texas Compares to National Average
IRS Statistics of Income Data
Average AGI
$58,000
Average Tax Liability
$7,800
Itemized Deduction Rate
22.0%
Avg SALT Deduction
$7,500
Avg Mortgage Interest Deduction
$10,500
Avg Charitable Deduction
$5,000
Source: IRS Statistics of Income (2022 tax year)
What This Means for You
Texas is one of the states that does not levy a state income tax. This can mean significant tax savings compared to high-tax states, though Texas may compensate through higher sales tax, property tax, or other fees. Consider the full tax picture when evaluating the cost of living.
Frequently Asked Questions
Does Texas have an income tax?
No, Texas does not have a state income tax.
What is the sales tax in Texas?
The combined state and local sales tax rate in Texas is approximately 8.2%.
How does Texas compare to other states?
Visit our state comparison page or use the Compare tool to see how Texas's tax burden compares to neighboring states and the national average.
Related Resources
Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.