It is often said that states with no income tax (i.e. Texas) "get you" with high sales and property tax. But how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax? 
reddit.com › r › AskEconomics › comments › 18m3brm › it_is_often_said_that_states_with_no_income_tax
Partly it’s because the tax on earnings versus a tax on spending would be different to achieve the same revenue from simple math. Let’s say apples cost $1 and you earn $100. You only buy apples. Suppose the state imposes a 20% income tax. (Assume prices don’t change to shift tax burden for simplicity) You can now only buy 80 apples and the government collects $20 in tax revenue Alternatively suppose the government uses a sales tax of 20%. Now apples cost $1.20 and you can only afford 83.3 apples and the government is only collecting $16.67 in revenue. So to collect the same revenues as the income tax, the sales tax would need too be more than 20%. It would need to be 25%. Answer from urnbabyurn on reddit.com
SmartAsset
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Texas Income Tax Calculator - SmartAsset
Find out how much you'll pay in Texas state income taxes given your annual income. Customize using your filing status, deductions, exemptions and more.
Tax Foundation
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Texas Tax Rates & Rankings | Tax Foundation
How does Texas’s tax code compare? Texas does not have an individual income tax. Texas does not have a corporate income tax but does levy a state gross receipts tax. Texas has a 6.25 percent state sales tax rate and an average combined state ...
Forbes Advisor
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Texas Income Tax Calculator 2024-2025
If you make $70,000 a year living in Texas as a single filer, you will be taxed $10,453. Your average tax rate is 14.93% and your marginal tax rate is 22%. This marginal tax rate means that your immediate additional income will be taxed at this rate.
Dallas County
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Tax Office | Tax Rates
Tax Office | Tax Rates
It is often said that states with no income tax (i.e. Texas) "get you" with high sales and property tax. But how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
Partly it’s because the tax on earnings versus a tax on spending would be different to achieve the same revenue from simple math. Let’s say apples cost $1 and you earn $100. You only buy apples. Suppose the state imposes a 20% income tax. (Assume prices don’t change to shift tax burden for simplicity) You can now only buy 80 apples and the government collects $20 in tax revenue Alternatively suppose the government uses a sales tax of 20%. Now apples cost $1.20 and you can only afford 83.3 apples and the government is only collecting $16.67 in revenue. So to collect the same revenues as the income tax, the sales tax would need too be more than 20%. It would need to be 25%. More on reddit.com
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December 19, 2023Property Taxes Are Still Out of Control
Oh it’s only gonna get worse when they pass school vouchers and public schools lose money. They are gonna increase property taxes to make up for the loss. Republicans don’t give a sht. More on reddit.com
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June 22, 2024what tf is up with property taxes in this city?
It always blows my mind that people are surprised by this....my brothers in Christ, we don't pay state income taxes. The State and local governments HAVE to get funds from somewhere to pay for infrastructure and basic services.
More on reddit.com 403
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February 10, 2023Is the no state income tax worth it?
Kiplinger did an article awhile back about best tax states, and Texas was not high on the list due to property tax. My property tax has gone up every year and the property value "gain" is unrealized unless I sell. May have to. More on reddit.com
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July 31, 2024Texas Economic Development Corporation
businessintexas.com › home › why texas › taxes & incentives › taxes
Low Taxes in Texas | Texas Business Taxes | Texas Income Tax | TxEDC
November 12, 2024 - Top ranked by Area Development, Texas’ tax climate is a constant benefit for companies. With no corporate or personal income tax, Texas has one of the lowest tax burdens in the nation.
Smtaxcpa
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Dallas, TX CPA / Steven E Miller, CPA PC
We'll Take Care of Your Taxes & Accounting · Simplify Your Life Stay Updated · Pay My Fee · (214) 361-1131 · We are here to help Contact Us · Southeastern Guide Dogs · Here are two short videos to introduce you to the organization. Allow me to introduce Pip and Hope: Pip's Story Hope's Story · Linkedin · Facebook · Twitter · One Stratford Park, Suite 420 18383 Preston Rd, Dallas, TX 75252 Call Us: (214) 361-1131 • Fax: (214) 253-2138 ·
Intuit TurboTax Blog
blog.turbotax.intuit.com › home › texas state income tax for 2025: a guide
Texas Income Tax Guide - Intuit TurboTax Blog
February 4, 2025 - Switch to TurboTax and file with Do It Yourself for Free in the app by 2/28. See offer details ... Texas is one of a few US states with no income tax for individuals.
SmartAsset
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Texas Paycheck Calculator - SmartAsset
Your hourly wage or annual salary ... You and your employer will each contribute 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes....
Reddit
reddit.com › r/askeconomics › it is often said that states with no income tax (i.e. texas) "get you" with high sales and property tax. but how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
r/AskEconomics on Reddit: It is often said that states with no income tax (i.e. Texas) "get you" with high sales and property tax. But how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
December 19, 2023 -
Texas is often criticized for it's "obfuscated" tax burden. But Texas's sales tax of 6.25% is lower than NYs 8.875%, and Californias 7.25%. Average property tax in Texas is 1.60% (double than Californias but still low).
Another thing I don't get is this: if I live in California and earn 50k, I pay 10k in taxes (20%). So if I live in a no-income-tax state, I shouldn't care about additional minor taxtations as long as they don't amount to 20% or more.
I am sure I may be wrong about 80% of this, but I struggle to figure out how.
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Partly it’s because the tax on earnings versus a tax on spending would be different to achieve the same revenue from simple math. Let’s say apples cost $1 and you earn $100. You only buy apples. Suppose the state imposes a 20% income tax. (Assume prices don’t change to shift tax burden for simplicity) You can now only buy 80 apples and the government collects $20 in tax revenue Alternatively suppose the government uses a sales tax of 20%. Now apples cost $1.20 and you can only afford 83.3 apples and the government is only collecting $16.67 in revenue. So to collect the same revenues as the income tax, the sales tax would need too be more than 20%. It would need to be 25%.
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The argument is that while Texas income taxes are low, it is likely to wash for the average person because property and sales taxes are higher. The other argument made is that ppl usually look at California's top income tax rate and compare that to the 0% on offer in Texas, ignoring that the top California rate (12.3%) only affects income in excess of 700k for an individual and like $1.3 million filling married. Most ppl will be have an effective tax rate more like 5%. https://www.nerdwallet.com/article/taxes/california-state-tax This article does a decent job of going through some details. It shows the average state and local tax burden as a % of median HHI and Texas is actually higher than Cali (some perhaps arguable assumptions). But like all blended statistics it hides a lot of variability, which is actually outlined nicely in the article. https://fortune.com/2023/03/23/states-with-lowest-highest-tax-burden/
BKV Energy
bkvenergy.com › home › bkv energy blog › all posts › does texas have state income tax? overview of texas taxes
Does Texas Have State Income Tax? Overview of Texas Taxes
April 25, 2025 - Learn how Texas’s unique tax structure—without state income tax but with higher property and sales taxes—impacts residents, renters, and businesses in 2025.
Dallasedc
dallasedc.com › opportunities-in-dallas › taxes-incentives
taxes incentives – Dallas Economic Development
Start with the City of Dallas Incentives Inquiry Tool in order to identify the best-fit programs for your project. The City’s Economic Development staff are ready and waiting to assist you in this process. Texas is renowned for its business-friendly tax structure. Texas boasts a low corporate franchise tax rate and beneficial policies to further reduce the corporate tax burden. Due to the absence of a state income tax for corporations and individuals, Texas enhances profitability and provides businesses with more capital to invest in growth and R&D.
City of Dallas
dallascityhall.com › departments › housing-neighborhood-revitalization › Pages › Low-Income-Housing-Tax-Credits.aspx
Housing & Community Development Low Income Housing Tax Credits
November 21, 2025 - For a list or spreadsheet of Low Income Housing Tax Credit projects in Dallas, visit the TDHCA Non-Competitive (4%) Housing Tax Credits page and download the HTC Property Inventory document under the Additional Guidance and Resources section.
Dallas Fed
dallasfed.org › research › swe › 2019 › swe1904 › swe1904c
Texas Sees Job, Output Gains from 2018 U.S. Tax Cut - Dallasfed.org
Early estimates suggest that Texas received a tax break equivalent to about 1.0 percent of its gross domestic product (GDP), which likely boosted the state’s job growth by 0.3 percentage points in 2018.
AARP
states.aarp.org › texas › state-taxes-guide
Texas State Taxes 2025: Income, Property and Sales
September 11, 2025 - But there is a trade-off: The state’s average property and sales tax rates are among the highest in the U.S. Income tax: Texas doesn’t tax individual income.
Texas Community Bank
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Marginal Tax Rate Calculator › Texas Community Bank
FDIC-Insured - Backed by the full faith and credit of the U.S. Government ... Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income.
Talent
talent.com › tax-calculator › Texas
Income tax calculator 2026 - Texas - salary after tax
That means that your net pay will be $45,925 per year, or $3,827 per month. Your average tax rate is 16.5% and your marginal tax rate is 29.6%. This marginal tax rate means that your immediate additional income will be taxed at this rate.
ADP
adp.com › resources › tools › calculators › states › texas-salary-paycheck-calculator.aspx
Texas Paycheck Calculator | ADP
March 11, 2025 - Use ADP’s Texas Paycheck Calculator to estimate net or “take home” pay for either hourly or salaried employees. Just enter the wages, tax withholdings and other information required below and our tool will take care of the rest.
Texas Secretary of State
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Employer and Tax Information
Texas Attorney General Employer Information Center: Information about employer new hire and termination reporting requirements. Overview of Taxes Collected by the Texas Comptroller of Public Accounts
Internal Revenue Service
irs.gov › filing › federal-income-tax-rates-and-brackets
Federal income tax rates and brackets | Internal Revenue Service
See current federal tax brackets and rates based on your income and filing status.
Texas Comptroller
comptroller.texas.gov › taxes › franchise
Franchise Tax
The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.