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Tax Year 2025 · Updated Apr 2026

2025 Texas Income Tax Brackets

Reviewed by TaxCompare Editorial Team · Updated

Texas (TX) does not levy a state income tax for tax year 2025. Wages, self-employment income, and most investment income are taxed only at the federal level for Texas residents.

What this means for filers

  • No state income tax return is required.
  • Federal Form 1040 still applies.
  • Sales tax, property tax, and excise taxes still fund state and local services.
  • Texas ranks among the states with the simplest filing structure.

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Frequently Asked Questions

Texas has no state income tax for 2025. Residents pay only federal income tax and FICA on earned income.

Texas does not levy a state income tax, so retirement distributions, pensions, and Social Security are not subject to state income tax. Federal rules still apply.

Texas funds state government through sales tax, property tax, excise taxes, and various fees rather than an income tax.

Reading Texas's bracket structure

Texas levies no state income tax for 2025. That places it in a small cohort of states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) that fund state government primarily through other revenue sources — sales tax, property tax, severance tax on natural resources, or tourism-related fees. Wage earners owe no state withholding regardless of bracket; investment-income earners owe no state tax on dividends or capital gains (with the historical exception of New Hampshire's interest-and-dividends tax, fully phased out in 2027).

Because Texas levies no income tax, no top marginal rate applies for 2025 or any other year. The state's tax burden on residents is concentrated in sales tax, property tax (locally administered), motor fuel tax, and (in resource-rich states) severance tax on oil, gas, mining, or timber. Comparison with income-tax states should account for the full revenue mix rather than focusing on the headline absence of income tax.

Tax brackets and deduction amounts on this page are the official figures published by the Texas Department of Revenue (or equivalent state tax authority) for the 2025 tax year. They are subject to mid-year revision when the state legislature passes a tax bill, and we update the figures within 30 days of any published change. For year-end planning calculations close to filing season, cross-reference against the state department's current published bracket table before filing.

Sources: Texas Department of Revenue, Tax Foundation, IRS
Last updated:

Texas 2025 income tax brackets from official state Department of Revenue publications, cross-checked against the Tax Foundation's State Individual Income Tax Rates and Brackets report. Effective-rate calculations use the standard deduction and progressive bracket math; itemized deductions, credits, and locality taxes are not included. Not tax advice; consult a qualified tax professional before filing.