Texas taxes — property, income, sales, retirement

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Property tax, income tax, sales tax, and retirement-income treatment in Texas. Quick read for movers, retirees, and remote workers.

No state income tax. But property tax effective ~1.74% — among the highest. Sales 6.25% base (local pushes to 8.25%).
Effective property tax
1.74%
of home value/yr
Income tax (top rate)
0%
Sales tax (state)
6.25%
local adds more
SS taxed by state?
No

Property tax

Texas’s effective property tax rate is approximately 1.74% of assessed home value per year. On a $350,000 home that’s about $6,090/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 0%. No state income tax. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.25%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Not taxed (no state income tax).

Top cities in Texas

Houston · pop 2,390,125 · momentum 52

San Antonio · pop 1,526,656 · momentum 50

Dallas · pop 1,326,087 · momentum 50

Fort Worth · pop 1,008,106 · momentum 56

Austin · pop 993,588 · momentum 34

El Paso · pop 681,723 · momentum 66

Compare to other states: All 50 state tax overviews · All Texas cities · Is Texas a good place to live? · Best Texas cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.