Texas Income Tax Calculator

Estimate your Texas income tax burden

Updated for 2024 tax year on Jul 23, 2024

What was updated? Fixed calculation error with federal and state payroll taxes

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Calculate your income tax in these states

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How to calculate your Texas income taxes

Understanding your Texas income taxes

One of the key financial benefits of living in the Lone Star State is that Texas does not impose a state income tax on its residents. Whether you earn $20,000 a year or $200,000, the state of Texas will not take a percentage of your earned income, providing significant savings for many residents.

Similarly to the state income tax, Texas also does not impose a state payroll tax or local income tax, allowing for greater take-home pay for employees and more savings for employers.

As Texas does not levy an income tax, there are no state standard deductions or state exemptions to factor into residents’ annual tax calculations.

Calculate your income tax in Texas

  1. Work out your total federal income tax
    1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
    2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
    3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
    4. Federal payroll tax liability
      Gross income × Federal payroll tax rate = Federal payroll tax liability
  2. Add up all the taxes
    Federal income tax liability + Federal payroll tax liability = Your total income tax liability

FAQs

How to calculate income tax in Texas?

Follow the steps below to calculate your total income tax in Texas:

  1. Work out your total federal income tax
  2. Sum up all the taxes

How much income tax do I pay in Texas?

Texas is one of the nine states without state-level earned income tax. You don't have to pay anything.