Texas state income tax rates

Texas is one of only nine U.S. states that doesn't tax individual wage income. The state’s constitution restricts passage of a personal income tax. The Lone Star State, however, does collect a gross receipts tax from some businesses.

Texas personal income tax rates for 2024

Texas residents pay no personal state income tax.

Texas sales tax rate

Texas has a 6.25 percent state sales tax, but local sales taxes levied by cities, counties and other entities can push the total sales tax to as much as 8.25 percent. You can find your specific sales tax rate with the Texas Comptroller’s online sales tax rate finder.

Other things to know about Texas taxes

• Property taxes: Texas does not have a state property tax. Instead, property taxes are assessed and collected locally. Total tax rates vary by location and may change from year to year. Property owners can apply for property tax exemptions, but the request must be submitted to the local taxing entity, not the state comptroller.
• Inheritance and estate taxes: Texas doesn’t impose an inheritance tax or an estate tax.
• Boat taxes: Recreational boating is big in Texas, and the state collects a 6.25 percent sales tax on the price of a boat or boat motor (minus any trade-in allowance) purchased in the state. The state’s corresponding use tax (less credit for taxes paid to another state) also is imposed on any boat or boat motor purchased outside of Texas and brought into the Lone Star state. In lieu of the use tax, a $15 fee may be due on a boat or boat motor brought into Texas by a new resident.
• Franchise tax: The Lone Star State’s franchise tax applies to all active businesses receiving state law liability protection.