Texas State Taxes
Quick Tax Facts
Income Tax: 0%
State Sales Tax: 6.25%
Median Property Tax: $2,275
Overview
Texas is a whopping 268,597 square miles, which means there is plenty to explore. Whether you’re looking for history (Alamo), great food, or some of the best football in America, you’ll find it all in the Lone Star State. It’s truly a place like no other. Those who live there are also free from paying state income taxes. Unfortunately, the state has a fairly high sales tax rate and property taxes can take a bite out of your wallet, as well.
Texas Income Tax
Texas does not have a state income tax.
Texas Sales Tax
Texas imposes a state sales tax of 6.25% on all retail sales, leases, and rentals of most goods. Local jurisdictions may also levy an additional sales tax of up to 2%.
Texas Property Taxes
Property taxes are assessed and collected at the local level in Texas. Since the state does not collect income taxes, property tax rates are on the high side (1.81% of a property’s assessed fair market value) compared to the rest of the country.
The median property tax bill in Texas is $2,275 (based on a median home value of $125,800). King County has the highest average annual bill at $5,066. The lowest average property tax bill in the state is $285 in Terrell County.
| Highest | $5066 |
|---|---|
| Median | $2275 |
| Lowest | $285 |
Yearly Cost Per Resident
Texas Tax Holidays
Texas offers several tax holidays for its residents.
- Annual Sales Tax Holiday – This annual back-to-school event takes place in August. Qualifying items include clothing and footwear (less than $100 each), school supplies, backpacks, and face masks.
- Emergency – Preparation Supplies Sales Tax Holiday – This annual holiday begins at 12:01 a.m. on the Saturday before the last Monday in April and ends at midnight that Monday. Tax-free items include portable generators ($3,000 or less), emergency ladders (less than $300), hurricane shutters (less than $300), and other various supplies valued under $75 each.
- Energy Star Sales Tax Holiday – Held annually in May around Memorial Day weekend, this 3-day tax-free event includes Energy Star products you buy, rent, or lease. Qualifying items include air conditioners ($6,000 or less), refrigerators ($2,000 or less), ceiling fans, dishwashers, washing machines, dehumidifiers, and certain light bulbs.
Texas Tax Resources
If you need more information about Texas taxes, please visit the Texas Comptroller’s website for additional resources.
