Texas Paycheck Calculator (2026)

Texas has no personal income tax, and in 2019 voters wrote that into the state constitution (Proposition 4), so creating one would now require another statewide vote. Nothing is withheld for state paid leave, disability or unemployment either; the state's unemployment tax falls entirely on employers. A Texas paycheck therefore loses only federal income tax, Social Security and Medicare, which is why the same salary goes further in Houston or Dallas than in most of the country.

The state pays for itself with a 6.25% sales tax that cities, counties and transit authorities can raise to 8.25% (nearly every metro area is at the cap), plus oil and gas severance taxes and a franchise tax on business margins. Local governments lean on property tax, and Texas property tax bills are among the highest in the nation relative to home value. Homeowners get a school district homestead exemption that lawmakers raised again in 2025, and a 10% annual cap on assessment growth for a primary residence.

Texas has no reciprocity agreements because there is nothing to reciprocate. Residents who work across the border in Oklahoma, Louisiana, Arkansas or New Mexico owe those states' income tax on wages earned there and get no offsetting credit at home. Remote workers who move to Texas from New York should check that state's 'convenience of the employer' rule before assuming their withholding stops.