Texas is one of nine U.S. states with no state income tax on wages in 2026. That means the only mandatory withholdings from your paycheck are federal income tax and FICA (Social Security and Medicare) — there is no state line item at all. On a $75,000 salary, a single filer takes home roughly $61,593 a year, or about 82.1% of gross pay, one of the higher keep-rates in the country.

No income tax does not mean no taxes. States like Texas typically recover revenue through higher sales or property taxes, so your total tax burden depends on how much you spend and whether you own a home. Still, for high earners and remote workers, the absence of a state wage tax is a meaningful, guaranteed boost to every paycheck compared with the 4.8% average rate levied by states that do tax income.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

Texas' no-income-tax status is constitutionally protected — a 2019 amendment requires two-thirds legislative supermajorities plus voter approval to ever create one. The trade-off shows up in property taxes, which rank among the nation's highest as school districts, counties, and municipalities all levy on home values. For renters and high earners, Texas is a clear paycheck win; for owners of expensive homes, the property tax bill claws back a meaningful share of the income-tax savings.