Texas Income Tax Calculator 2026

Texas residents pay $0 in state income tax. Compared to the national average state income tax, Texas workers save $2,020–$5,386 per year depending on income level.

Estimates for single filers using 2026 IRS rates and $16,100 standard deduction. Does not include credits, itemized deductions, or additional income sources.

Texas Has No State Income Tax in 2026

Texas is one of only nine states in the US that does not levy a state income tax. This means Texas residents owe no state income tax on wages, salaries, or most forms of income — only the federal government taxes your earnings. For a Texas worker earning the state median income of $67,321, the absence of state income tax saves approximately $3,433 per year compared to paying the national average state rate of 5.1%. This makes Texas one of the most tax-friendly states for workers in the US.

Federal Income Tax for Texas Residents in 2026

All Texas residents pay the same federal income taxes as workers in every other state. The 2026 federal tax brackets are progressive, ranging from 10% on the first $11,925 of taxable income (single) up to 37% on income above $626,350. The federal standard deduction is $16,100 for single filers and $32,200 for married filing jointly in 2026 — increased from 2025 due to inflation adjustments. For a single Texas resident earning $75,000, federal income tax is approximately $7,872 per year after taking the standard deduction. This is identical regardless of which state you live in.

2026 One Big Beautiful Bill Changes Affecting Texas Residents

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made several tax changes that benefit Texas residents in 2026. Key changes include: tip income is now deductible up to $25,000 for service workers, overtime pay is deductible up to $12,500 (single filers), workers 65 and older receive a $6,000 senior deduction, car loan interest on US-manufactured vehicles is deductible up to $10,000, and the Child Tax Credit increased to $2,200 per qualifying child. The SALT deduction cap was also raised to $40,000 for households earning under $500,000, which benefits Texas residents who itemize and pay significant state and local taxes, though with no state income tax, most residents find the standard deduction more beneficial.

How Filing Status Affects Your Texas Tax Bill

Your federal filing status — single, married filing jointly, married filing separately, or head of household — significantly impacts your tax bill. Married Texas couples filing jointly benefit from wider tax brackets and a $32,200 standard deduction (double the single amount). For example, a married Texas couple each earning $60,000 ($120,000 combined) filing jointly pays approximately $14,230 in federal income tax versus $10,059if both filed as single. The "marriage bonus" or "marriage penalty" depends on the relative income of each spouse — our calculator shows the exact difference for your specific situation.

Key Deductions and Credits for Texas Taxpayers

Texas residents can reduce their federal tax bill through several strategies. Above-the-line deductions — including 401(k) contributions (up to $24,500), Traditional IRA contributions (up to $7,000), HSA contributions, and student loan interest — reduce your adjusted gross income before the standard deduction applies. The Child Tax Credit of $2,200 per qualifying child under 17 directly reduces your tax bill dollar-for-dollar. The Earned Income Credit benefits lower and middle-income Texas workers. Tax credits are more valuable than deductions: a $2,200 credit saves $2,200 in taxes, while a $2,200 deduction in the 22% bracket saves only $484.

Will You Get a Refund or Owe Taxes in Texas?

Whether you receive a federal tax refund or owe taxes depends entirely on how much was withheld from your Texas paychecks throughout the year. If your employer withheld more than your actual tax liability, you receive the difference as a refund. If too little was withheld, you owe the difference plus potential underpayment penalties. Most Texas W-2 employees who complete their W-4 accurately will receive a modest refund or owe a small amount. Self-employed Texas residents must make quarterly estimated payments to avoid penalties — our self-employment tax calculator can help estimate your quarterly payment amounts.