Texas Taxes 2025
Complete tax guide and OBBBA calculator for TX residents
On This Page
Texas Tax Overview 2025
State Income Tax
0%
None rate structure
Combined Sales Tax
8.20%
State 6.25% + Local 1.95%
Avg Property Tax
1.80%
Above average property taxes
No State Income Tax!
Texas is one of only 9 states with no personal income tax. Combined with federal OBBBA deductions, TX residents enjoy significant tax advantages compared to residents of high-tax states.
💼 Texas Income Tax 2025
Texas has no state income tax.
Texas Income Tax Quick Facts
🛒 Texas Sales Tax 2025
Texas's combined average sales tax rate is 8.20%, which includes both state and local components. The state sales tax rate is 6.25%, while local jurisdictions add an average of 1.95%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Texas Property Tax 2025
Texas's average effective property tax rate is 1.80%. Above average property taxes.
Property taxes in Texas are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $4,500 | $375 |
| $400,000 | $7,200 | $600 |
| $600,000 | $10,800 | $900 |
OBBBA Tax Benefits for Texas Residents
Texas residents get double benefits - no state income tax plus federal OBBBA deductions. Houston, Dallas, and Austin service workers especially benefit.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Texas residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for TX Residents:
Calculate Your Texas Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Texas resident.
Calculate My SavingsHow Texas Compares
| Tax Type | TX Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 0% | 5.1% | No Tax |
| Sales Tax | 8.20% | 7.12% | Above Avg |
| Property Tax | 1.80% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Texas?
Texas has a none income tax with rates of 0%. Texas has no state income tax.
What is the sales tax in Texas?
The combined average sales tax rate in Texas is 8.20%. This includes the state rate of 6.25% plus an average local rate of 1.95%.
How do OBBBA deductions benefit Texas residents?
Texas residents get double benefits - no state income tax plus federal OBBBA deductions. Houston, Dallas, and Austin service workers especially benefit. Texas residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Texas taxes due?
For tax year 2025, Texas state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.