If you live or work in Austin, here's what you'll pay in Texas state income tax in 2026. Since {state_name} has no state income tax, your only state-level obligation is the federal tax. Use the calculator below to estimate your take-home pay.
Texas is one of the 9 states with no state income tax. Residents keep more of every paycheck, but property and sales taxes are often higher. Texas also has no local income tax in most areas.
Top marginal rate: No state income tax
Tax structure: No state income tax
State capital: Austin
2026 brackets: No state income tax
Austin does not have a local city income tax, so you only pay federal and Texas state income tax.
As a Austin resident, your total tax burden is federal + Texas state. Property taxes and sales taxes apply separately.
Generally, you pay state income tax in the state where you live, not where you work. If you commute from another state, you typically pay that state's tax. Some states have reciprocity agreements that simplify this. Texas has no state income tax, so residency typically doesn't affect your state return.
Texas does not have a state income tax. The state relies on sales tax, property tax, and other revenue sources.
For 2026 returns, the Texas state tax deadline is typically April 15, 2027 (same as federal). Extensions follow federal rules. If you file for an extension federally, you typically get an automatic state extension too.
You can deduct state and local income taxes (SALT) on your federal Schedule A, capped at $10,000 total for state + local + property taxes. This is most useful if you itemize. Most people take the standard deduction and don't get this benefit.
No. If you moved out of Texas before earning any income, you don't need to file a Texas return. You'll file in your new state of residence.
Traditional 401(k) and IRA contributions reduce your federal taxable income. Most states (including Texas) also reduce your state taxable income. The 2026 limit is $24,500 for 401(k) and $7,500 for IRA (with catch-up if 50+).
Health Savings Accounts offer a triple tax advantage: deductible going in, tax-free growth, tax-free for medical. Texas follows federal HSA rules (contributions are deductible).
If you're in a high tax bracket, deferring bonuses or consulting income to the next year can lower your effective rate. Self-employed? S-Corp election can save self-employment tax.
If you have a mortgage and high property taxes, itemizing may beat the standard deduction. The SALT cap is $10K but most people in Austin benefit when combined with mortgage interest.
⚠️ Estimate. This calculator provides an approximation based on 2026 federal and Texas state tax rates. Local taxes, credits, and deductions vary. Consult a tax professional for personalized advice.