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Texas

Financial data for local governments across Texas

968 Cities
254 Counties
231 Towns
23 Villages
624 CDPs

Tax Snapshot (Beta)

Beta: source-backed tax context only. This is not a personalized tax-burden estimate.

Current source-backed tax context for Texas.

Component Summary Effective Coverage Sources
TX individual income tax policy Texas did not levy an individual income tax in tax years 2024 or 2025. Article VIII, Section 24-a of the state constitution provides that the legislature may not impose a tax on the net incomes of individuals, and Section 1(c) extends the legislature's power to tax incomes only to corporations other than municipal. Tax years 2024 and 2025; reviewed September 19, 2026. Not levied Texas Constitution, Article VIII, Sections 1(c) and 24-a; Texas Comptroller, Texas taxes and fees A to Z
TX local individual income tax authority No Texas local government levies an income, wage or payroll tax for tax years 2024 and 2025. One statute, Transportation Code §451.401, lets a metropolitan rapid transit authority — Houston, San Antonio, Austin, Corpus Christi — "impose any kind of tax except an ad valorem property tax." For a tax on income, wages or payroll, its board must first adopt a tax code and voters must approve the tax in an election (§§451.402–451.403). The same goes for a district such an authority creates (§451.707(d)); San Antonio has the only one. None has; each levies only a sales tax. Tax years 2024 and 2025; reviewed September 19, 2026. Not levied Texas Constitution, Article XI, Sections 4 and 5 (local taxing power exists only as authorized by law); Texas Transportation Code, Chapter 451, Sections 451.401 to 451.403 and 451.707; Texas Comptroller, transit sales and use tax; U.S. Census Bureau, 2022 Census of Governments finance datasets (individual unit file)
TX sales and use tax (base) Texas state sales and use tax rate is 6.25%; local sales/use taxes can add up to 2% (maximum combined 8.25%). Current Comptroller guidance (as accessed April 18, 2026). Rate missing Local sales and use tax collection - guide for sellers; Texas use tax
TX property tax policy (local taxing units) Texas has no state property tax; local taxing units set rates and collect property taxes. Current Comptroller property-tax guidance (as accessed April 18, 2026). Needs review Property tax assistance; Property tax system basics

Retirement income taxes in Texas

Tax year 2026. Verified 2026-10-06.

Retirement income

Social Security
Not taxed: the state has no income tax.
Sources (3)
Government pensions and plans, in-state and federal
Not taxed: the state has no income tax.
Sources (3)
Government pensions and plans from other states
Not taxed: the state has no income tax.
Sources (3)
Military retired pay
Not taxed: the state has no income tax.
Sources (3)
Private pensions
Not taxed: the state has no income tax.
Sources (3)
Private employer plan withdrawals (401(k) and similar)
Not taxed: the state has no income tax.
Sources (3)
IRA withdrawals
Not taxed: the state has no income tax.
Sources (3)
Dividends and interest
Not taxed: the state has no income tax.
Sources (3)
Capital gains
Not taxed: the state has no income tax.
Sources (4)
A deduction for all income, by age or low income
Does not apply: the state has no income tax.
Sources (3)
Other state taxes on this income
None.
Sources (12)
Local income taxes
None.

This rests on a search, not on a ban. The state constitution's ban on an individual income tax names only the state legislature, and we found no local government levying an income, wage or payroll tax for tax year 2026. One statute, Transportation Code §451.401, lets a metropolitan rapid transit authority — Houston, San Antonio, Austin, Corpus Christi — "impose any kind of tax except an ad valorem property tax." For a tax on income, wages or payroll, its board must first adopt a tax code and voters must approve the tax in an election (§§451.402–451.403). The same goes for a district such an authority creates (§451.707(d)); San Antonio has the only one. None has; each levies only a sales tax. The state constitution also lets cities of more than 5,000 people levy "such taxes as may be authorized by law or by their charters" (art. XI, §5), and no charter may hold a provision "inconsistent with the Constitution of the State, or of the general laws." We did not read city charters; no Texas city reported an individual income tax in the Census Bureau's 2022 count of local governments.

Sources (15)

Estate and inheritance taxes

Estate tax
No.
Sources (6)
Inheritance tax
No.
Sources (6)

Compare retirement income taxes in every state

Demographics

Census Bureau ACS 5-year estimates (2023)

29,640,343 Population
$76,292 Median Household Income
$260,400 Median Home Value
35.5 Median Age
13.8% Poverty Rate
5.1% Unemployment Rate
62.6% Homeownership Rate
33.1% Bachelor's+ Rate
Population
29,640,343 (2023)
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2010 2023
Median Household Income
$76,292 (2023)
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2010 2023
Per Capita Income
$39,446 (2023)
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2010 2023
Median Home Value
$260,400 (2023)
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2010 2023
Median Gross Rent
$1,339 (2023)
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2010 2023
Median Age
35.5 (2023)
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2010 2023
Gini Index
0 = perfect equality · 1 = perfect inequality
0.5 (2023)
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2010 2023

Local Governments

Cities (968)
Counties (254)
Towns (231)
Villages (23)
Census-Designated Places (624)

Largest by Population

Harris County County 4,758,579
Dallas County County 2,606,868
Houston City 2,310,432
Tarrant County County 2,135,743
Bexar County County 2,037,344

Explore Governments

Data: NYS Comptroller · CA State Controller · US Census Bureau benchmarkusa.org