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Texas flagTax Foundation 2026Low-to-high rank #6

Texas Total Tax Burden

8.6% of state income · $4,994 per capita · 2.6% below the US estimate.

By Sammy S. · Founder · AuthorUpdated for 2026

8.6%
Total burden
#6
National rank
$4,994
Per capita
$8,600
$100k illustration

Texas total tax burden snapshot

Residents of Texas bear an estimated 8.6% of state income in state and local taxes, equal to $4,994 per person. The estimate ranks #6 from lowest to highest.

Total burden

8.6%

Share of state income

National rank

#6

#1 is lowest

Per-capita burden

$4,994

State-local taxes borne

Compared with US

−2.6%

Versus 11.2%

Key finding — Texas tax burden

Texas's estimated state-local tax burden is 8.6% of state income ($4,994 per capita) in Tax Foundation Facts & Figures 2026 (burden year 2022), ranking #6 from lowest to highest (#1 = lowest burden) and 2.6% below the 11.2% US average. On a $100,000 income illustration that is about $8,600 — not a personal tax bill.

Key takeaways for Texas

  • Texas ranks #6 at 8.6% of income — #1 is lowest (Alaska 4.6%), #50 is highest (New York 15.9%).
  • Texas is 2.6% below the 11.2% US average; per capita is $4,994 vs $6,949 nationally.
  • Illustrative scale at $100,000 income: about $8,600 using the statewide average rate — includes allocated business and other taxes, not just withholdings.
  • Supporting benchmarks (not summed into burden): combined sales tax 8.2%; effective owner-occupied property tax 1.4%.
  • Texas has no state wage income tax, yet its total burden is still 8.6% — sales, property, business, and excise taxes fill the mix.
  • Nearby on the burden table: Michigan (8.6%) and South Dakota (8.4%).

Compare Texas with another state

Compare any two states

Average burden, per-capita cost, income illustrations, sales tax, and property tax.

Texas burden illustrations vs US average

Scale illustrations only — income × average burden rate. Not a personal tax calculation.

$75,000 income

Texas ≈ $6,450 · US avg ≈ $8,400 · diff −$1,950

$100,000 income

Texas ≈ $8,600 · US avg ≈ $11,200 · diff −$2,600

$150,000 income

Texas ≈ $12,900 · US avg ≈ $16,800 · diff −$3,900

Per-capita benchmark

$4,994 in Texas vs $6,949 US · sales 8.2% · property 1.4%

Texas tax burden illustrations by income

These examples apply the statewide average burden to income to show scale. They are not personal tax calculations; the burden measure includes indirect and business taxes as well as direct household taxes.

$50,000 income

Texas
$4,300
US
$5,600
Difference
−$1,300

$75,000 income

Texas
$6,450
US
$8,400
Difference
−$1,950

$100,000 income

Texas
$8,600
US
$11,200
Difference
−$2,600

$150,000 income

Texas
$12,900
US
$16,800
Difference
−$3,900

Understanding Texas's tax mix

Total burden is not calculated by adding these rates. The cards provide current, separate benchmarks that help explain how households encounter different parts of the tax system.

How to read Texas's burden

What Texas's 8.6% burden means

Tax Foundation estimates the state and local taxes economically borne by Texas residents — including taxes paid to other states when incidence lands at home — then divides by aggregate Texas income.

The result is an economy-wide average for calendar year 2022, published in Facts & Figures 2026. It is not your Form W-2 effective rate and not Census collections where governments receive the payment.

On the low-to-high rank, #1 is Alaska (4.6%) and #50 is New York (15.9%).

Texas vs the US average

Texas is 2.6% below the 11.2% US average. Per capita: $4,994 here vs $6,949 nationally.

A $100,000 income illustration is about $8,600 in Texas vs $11,200 at the US average — scale only.

Per-capita burden reflects both tax policy and how high state incomes are; a high dollar figure can accompany a mid-pack percentage when incomes are high.

How Texas's tax mix shows up

Texas does not tax wages with a broad state personal income tax. Households still face sales, property, excise, and allocated business taxes — which is why a “no income tax” label is not the same as a bottom burden rank.

Current separate benchmarks on this site: combined sales tax 8.2% and effective property tax 1.4%. Do not add those percentages to 8.6%.

For an additive sample household (wage + property + sales dollars), use the household-tax-by-state vignette — a different metric from Tax Foundation burden.

How to use the Texas profile

Quote the burden share and per-capita figure when comparing state tax systems in articles or relocation screens.

Model your filing status and salary with the paycheck comparison, then check local sales and parcel-level property tax before treating any average as a personal bill.

Pair this page with a head-to-head compare URL when you need a clear gap between two states at the same income illustration.

Who this Texas profile helps

Useful if…

  • •Movers and households checking Texas's state-local burden share, rank, or per-capita figure with a clear vintage.
  • •Relocation planners screening Texas before modeling a specific paycheck and home.
  • •Readers comparing Texas's full tax mix to “no income tax” or high-PIT narratives.
  • •Anyone linking this profile to sales-tax, property-tax, or household vignette tools.

Use another tool if…

  • •You need a binding estimate for one Texas address, school district, or city wage tax.
  • •You want only federal + state income tax withholdings — use the paycheck calculator.
  • •You need an additive sample household bill (wage + property + sales) — use household tax by state.
  • •You are ranking statutory sales or property rates alone — use those dedicated hubs.

Related: Household tax by state · Texas sales tax · Texas property tax

How Texas's total tax burden compares nationally

Share of income

Texas's 8.6% burden is 2.6% below the 11.2% US estimate.

Per-capita dollars

The per-capita estimate is $4,994, which is $1,955 below the national $6,949 figure. Per-capita dollars reflect both tax policy and differences in state income.

Calculation details

How Texas's 8.6% burden is determined

Tax Foundation estimates the state and local taxes economically borne by Texas residents, then compares that amount with aggregate state income. This differs from simply adding tax rates or dividing taxes collected inside Texas by population.

Texas burden formula

State-local taxes borne by Texas residents
Aggregate Texas income
× 100 = 8.6%

1. Government collections

Census state and local collections provide the starting totals for detailed tax categories.

2. Economic allocation

Taxes are reassigned to the residents estimated to bear them, including Texas residents paying taxes elsewhere.

3. Income denominator

Official economic and income data are used to estimate the aggregate income available to state residents.

4. Per-capita result

Dividing taxes borne by population produces the separate $4,994 per-person estimate.

Taxes included

State and local income, property, general and selective sales, excise, business, license, estate, transfer, severance, and miscellaneous taxes.

Not included in the rate

Federal taxes, the value of government services, and a personalized calculation based on one household's income, spending, property, deductions, or credits.

Who bears state and local taxes?

Direct household taxes

Residents directly pay income tax, sales tax, property tax, vehicle charges, and other taxes depending on their income, purchases, housing, and location.

Taxes shifted through the economy

Businesses may legally remit a tax while workers, consumers, owners, or residents of another state bear part of the economic cost through wages, prices, and investment returns.

Household differences

How Texas taxes can affect different households

The 8.6% average combines taxpayers with very different finances. These profiles show which tax categories are most useful to investigate next.

Working households

Compare state and local income tax at your salary, payroll deductions, taxable spending, and available credits.

Renters

Focus on income and sales taxes while recognizing that landlords can pass part of property-tax costs into rent.

Homeowners

Add the address-specific bill to Texas's 1.4% statewide property benchmark.

Retirees

Review Social Security, pension and retirement withdrawals, property relief, estate rules, and taxable purchases.

Tax questions to ask before moving to Texas

What would Texas income tax be at my salary, filing status, and household size?

Does the city or county impose an additional wage or income tax?

How much of my spending would face Texas's 8.2% combined sales tax benchmark?

If buying, what will the parcel be assessed at after the sale and which exemptions remain?

How do vehicle fees, fuel taxes, insurance premiums, utilities, and healthcare compare?

Does the difference in wages, housing, and public services outweigh the tax difference?

Why Texas's tax burden can change over time

The 2022 burden is a historical benchmark, not a permanent rate. Later estimates can move even without one major tax-law change.

Tax policy

Changes to rates, deductions, exemptions, credits, tax bases, and local levies.

Income and economy

Wage growth, investment income, business activity, employment, and population shifts.

Housing and spending

Property values, reassessments, consumer purchases, and the mix of taxable goods and services.

Cross-state incidence

Taxes exported to visitors or businesses—and taxes residents bear in other states—can change.

Why this is not a personal tax rate

The burden is a statewide average across the entire economy. A renter, homeowner, retiree, business owner, and high-income employee can face very different direct taxes. Use it to compare state tax systems—not to predict a tax return or exact annual bill.

Texas total tax burden FAQs

Texas's estimated state-local tax burden is 8.6% of state income, or $4,994 per capita (Tax Foundation Facts & Figures 2026, burden year 2022).

Tax Foundation estimates all state and local taxes economically borne by Texas residents, including qualifying taxes paid to other states, then divides that total by Texas's aggregate income. The 8.6% result is an economy-wide average.

Texas ranks #6, where #1 is the lowest burden and #50 is the highest.

Texas's 8.6% burden is 2.6% below the 11.2% national estimate.

Applying the statewide average burden rate gives an illustrative $8,600. This is not a personal tax calculation and can differ substantially by household.

The estimate includes state and local individual income, property, sales, excise, business, license, estate, and other taxes allocated through the Tax Foundation's economic-incidence methodology.

No. Federal income, Social Security, and Medicare taxes are excluded from this state-local comparison.

No. Texas's 8.2% combined sales tax benchmark is one tax-rate measure. Total burden combines the economic effect of many state and local taxes.

Yes. Property taxes are included. Texas's separate effective owner-occupied property tax benchmark is 1.4%.

Texas has no broad state wage income tax, but its total burden is still 8.6% because sales, property, business, and other taxes count in the economic-incidence measure.

Household income, filing status, credits, purchases, home value, local jurisdiction, business ownership, and taxes embedded in prices all change individual exposure.

No. That mixes an economic-incidence average with an additive sample bill. Quote one metric, or show both in separate columns.

Use the state-pair selector on this page, or open a compare URL such as Texas vs Michigan. You will see average burden, per-capita burden, sales tax, property tax, and illustrative income amounts side by side.

Use Texas's burden as one comparison point, not the sole reason to move. Compare expected take-home pay, housing, insurance, healthcare, transportation, public services, and employment opportunities.

Renters usually do not pay property tax directly, but property taxes can affect rent. Renters also bear sales, income, excise, business, and other taxes through direct payments, prices, and wages.

Not automatically. Tax burden measures taxes borne, not the quality or quantity of services received. Review schools, infrastructure, healthcare, safety, and other services separately.

Yes. State and local tax changes, economic conditions, income growth, property values, consumption, and taxes shifted across state lines can change later estimates.

Compare Texas with similar-burden states

State paycheck tax comparison→ All state burden rankings→

Burden year 2022. Average economic-incidence estimate only; not financial, legal, or tax advice.