# Texas Tax Calculator

Calculate Texas property tax and sales tax. Texas has no state income tax. Estimate your total Texas tax burden with this free calculator.

## What this calculates

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.

## Inputs

- **Home Value** ($) — min 0 — Appraised market value of your home.
- **Property Tax Rate** (%) — min 0, max 5 — Your local property tax rate (Texas average is about 1.74%).
- **Homestead Exemption** — options: None, $100,000 (School District) — Texas school district homestead exemption ($100K as of 2023).
- **Annual Taxable Spending** ($) — min 0 — Estimated annual spending on taxable goods and services.
- **Local Sales Tax Rate** (%) — min 0, max 2 — Local sales tax rate (up to 2%, most cities charge 1-2%).

## Outputs

- **Annual Property Tax** — formatted as currency — Estimated annual property tax after exemptions.
- **Monthly Property Tax** — formatted as currency — Monthly property tax escrow amount.
- **Annual Sales Tax Paid** — formatted as currency — Estimated total sales tax based on spending.
- **Combined Sales Tax Rate** — formatted as percentage — State (6.25%) plus local sales tax rate.
- **Total Estimated Tax Burden** — formatted as currency — Combined property tax and sales tax per year.

## Details

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.

## Frequently Asked Questions

**Q: Does Texas have a state income tax?**

A: No. Texas is one of nine states with no personal income tax. The Texas Constitution actually prohibits a state income tax unless voters approve it by referendum. Texas funds state and local government primarily through property taxes, sales taxes, and taxes on oil and gas production. This makes Texas attractive for high earners but means homeowners pay more in property taxes compared to most other states.

**Q: How does the Texas homestead exemption work?**

A: Texas offers a $100,000 homestead exemption for school district taxes on your primary residence (increased from $40,000 in 2023). This means $100,000 is subtracted from your home's appraised value before the school district tax rate is applied. Some cities and counties offer additional homestead exemptions. You must apply for the exemption with your county appraisal district. Senior citizens (65+) and disabled homeowners qualify for additional exemptions and a tax freeze on school taxes.

**Q: What is the sales tax rate in Texas?**

A: The Texas state sales tax rate is 6.25%. Cities, counties, transit authorities, and special purpose districts can add up to 2% in combined local taxes, bringing the maximum total rate to 8.25%. Most major Texas cities like Houston, Dallas, Austin, and San Antonio have combined rates between 8.0% and 8.25%. Groceries, prescription drugs, and certain medical items are exempt.

**Q: Is Texas actually cheaper than states with income tax?**

A: It depends on your specific situation. For high earners who rent or own a modest home, Texas is usually cheaper because you avoid income tax entirely. But if you own an expensive home, Texas property taxes can offset the income tax savings. A family with a $500,000 home in Texas might pay $8,000+ in property taxes, which is comparable to income tax in many states. Run the numbers for your specific income, home value, and spending habits to compare.

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Source: https://vastcalc.com/calculators/finance/texas-tax
Category: Finance
Last updated: 2026-04-08