Texas Tax Calculator
Estimate your total tax burden in Texas. While Texas has no state income tax, it makes up for it with higher-than-average property taxes and an 6.25% state sales tax (plus local rates). Enter your home value and spending to see the full picture.
Texas is one of nine states with no personal income tax, which is a major draw for residents and businesses relocating from high-tax states. However, Texas relies heavily on property taxes and sales taxes to fund state and local services.
Texas property taxes are among the highest in the nation, with an average effective rate around 1.74% of home value. On a $300,000 home, that is roughly $5,220 per year before exemptions. The $100,000 school district homestead exemption (increased from $40,000 in 2023) significantly reduces the tax on primary residences. Local rates vary by school district, city, county, and special districts.
The state sales tax rate is 6.25%, and cities and other local jurisdictions can add up to 2%, bringing the maximum combined rate to 8.25%. Groceries (unprepared food), prescription drugs, and over-the-counter medications are exempt from Texas sales tax. Clothing is taxable.
Whether Texas is actually cheaper depends on your situation. If you own an expensive home and spend heavily on taxable goods, the property and sales taxes can rival or exceed what you would pay in income tax elsewhere. Renters and people with modest homes tend to benefit most from the no-income-tax structure.