Texas Tax Rates & Tax Burden
Tax Burden
8.6%
6th lowest
Top Income Tax
None
No state income tax
Combined Sales Tax
8.201%
6.25% state rate
Property Tax
1.356%
Effective rate
Individual Income Tax
Source: Tax Foundation (2025)Texas is one of 9 states that does not levy a state individual income tax. The other states with no income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, Wyoming.
Top Marginal Income Tax Rate by State
Sales Tax
Source: Tax Foundation (2025)State Rate
6.25%
Avg. Local Rate
1.951%
Combined Rate
8.201%
Collections per Capita
$1,764
Texas has a state sales tax rate of 6.25%. When combined with average local sales taxes, the total combined rate is 8.201%. Sales tax collections total $1,764 per capita.
Combined Sales Tax Rate by State
Property Tax
Source: Tax Foundation / Census (2025)Effective Rate
1.356%
Collections per Capita
$2,247
The effective property tax rate in Texas is 1.356% of owner-occupied housing value. Property tax collections total $2,247 per capita.
Effective Property Tax Rate by State
Gas & Fuel Tax
Source: Tax Foundation (2025)Gas Tax
20¢/gal
Texas levies a total gas tax of 20¢/gal per gallon, which includes both excise taxes and other fees. The national average is 32.6¢/gal.
Gas Tax by State (¢/gallon)
Corporate Income Tax
Source: Tax Foundation (2025)Top Corporate Rate
N/A
Texas levies a corporate income tax with a top rate of N/A.
Top Corporate Income Tax Rate by State
Business Tax Climate
Source: Tax Foundation SBTCI (2025)Business Climate Rank
#7
of 50 states
Tax Burden Rank
#6
6th lowest burden
Total Collections / Capita
$2,852
The Tax Foundation's State Business Tax Climate Index ranks Texas #7 out of 50 states for overall tax competitiveness. This index evaluates corporate taxes, individual income taxes, sales taxes, property taxes, and unemployment insurance taxes.
The total state and local tax burden in Texas is 8.6% of state income, compared to the national average of 10.56%.
Business Tax Climate Rank by State (1 = Best)
How Texas Compares
Tax Burden by State (% of Income)
| Metric | Texas | National Avg. |
|---|---|---|
| Tax Burden (% of income) | 8.6% | 10.56% |
| Combined Sales Tax | 8.201% | 7.21% |
| Property Tax (effective) | 1.356% | 0.873% |
| Gas Tax (¢/gallon) | 20¢/gal | 32.6¢/gal |
| Collections per Capita | $2,852 | $4,397 |