Does Texas Have State Income Tax? -

Texas does not impose a state personal income tax, meaning you won’t receive a Texas tax refund, and there is no Texas refund status to track. Learn more about other Texas state taxes below.

State: Texas
Tax Information Website: Learn more about Texas taxes from the Texas Comptroller
Phone Number: (713) 426-8200

FAQs

Does Texas have a state income tax?

No, Texas is one of nine states that do not have an income tax as of tax year 2025.

Does Texas tax Social Security?

No, because Texas doesn’t have an income tax, it also doesn’t tax Social Security or any other form of retirement income. Federal taxes on Social Security may still apply.

Does Texas tax retirement income?

Texas doesn’t tax retirement income. This means all retirement income, including pension payments, Social Security benefits, and withdrawals from 401(k) plans and IRAs, is free from state taxes.

Do you need to file a tax return in Texas?

You don’t need to file a personal Texas state income tax return, since the state does not have an income tax. However, many residents will still need to file a federal tax return if their income meets the IRS tax filing threshold (and may be able to claim a federal refund).
Instead of a corporate income tax, Texas levies a franchise tax, so business owners may need to file a Texas franchise tax return for their entity. “Small corporations” may be exempt if they meet specific criteria. The franchise tax rate is 0.375% for retail or wholesale, and 0.75% for other entities.

Does Texas have a sales tax?

Texas has a statewide sales tax rate of 6.25%. Local taxing jurisdictions may also impose a sales tax of up to 2%.

Is Texas a tax-free state?

Although Texas doesn’t tax income, it’s not a tax-free state. Texas has the following taxes:

Franchise tax
Sales and use tax
Local property taxes
9-1-1 fees and surcharge
Automotive oil sales fee
Battery sales fee
Boat and boat motor taxes
Cement production tax
Coastal protection tax
Coin-operated machines tax
Crude oil production tax
Hotel occupancy tax
Insurance taxes, assessments, and fees
Loan administration fee
Manufactured housing sales and use tax
Miscellaneous gross receipts tax
Mixed beverage taxes
Motor fuels taxes and fees
Motor vehicle taxes
Natural gas production tax
Oil and gas well servicing tax
Oyster sales fee
Pari-Mutuel tax
Public utilities gross receipts assessment
Sexual oriented business fee
Texas Emissions Reduction Plan (TERP), off-road, heavy-duty diesel equipment surcharge
Tobacco, cigarettes, e-cigarette taxes and fees

You may need to file a tax return if you owe these taxes.

The bottom line

There are no Texas state refunds because Texas doesn’t have a state income tax. Residents don’t have to file a personal state return for this reason. However, you’ll likely still need to file a federal tax return, and depending on your situation, you may owe other state taxes, such as local sales tax or local property tax.

If you need help with your federal tax preparation, TaxAct® can help you e-file quickly and confidently.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

Does Texas Have State Income Tax?

FAQs

The bottom line

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