Texas Taxes

Texas has no state individual income tax: wages, salaries and other personal income are not taxed by the state. This is in the Texas Constitution, not just in statute — Article 8, Section 24-a (added November 5, 2019) says the legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income, and Section 24-b (added November 4, 2025) bars a state tax on an individual's realized or unrealized capital gains. Texas raises revenue instead through sales and use tax (6.25% state rate plus local taxes), local property taxes, and business taxes such as the franchise tax, which is not a personal income tax. Federal income tax still applies to Texas residents, and income earned in another state may be taxed by that state.

Texas taxes gasoline at twenty cents ($.20) per gallon when it is removed from a terminal, imported, blended, sold to an unauthorized person or put to another taxable use not otherwise exempted by law (Texas Tax Code § 162.102), per the Texas Comptroller. No gas-tax suspension is in effect in Texas. The 18.4-cent federal gasoline tax is extra.

Three 2026 holidays, all now past: Emergency Prep (Apr 25–27, 2026), Energy Star & water-efficient products (May 23–25, 2026), and Back-to-School clothing, footwear, school supplies and backpacks under $100 (Aug 7–9, 2026). The Comptroller has posted the next Back-to-School holiday: Friday Aug 6 through Sunday Aug 8, 2027.

In Texas, food products for human consumption are exempt from the 6.25% state sales tax and local sales taxes (Tex. Tax Code 151.314(a)): cereals, milk and dairy (including ice cream), meat, poultry, fish, eggs, fruit, vegetables, spices, sugar, coffee, tea, cocoa and similar groceries. Snack items such as chips, crackers, nuts, popcorn, trail mix, granola or protein bars and ice cream are exempt too, except when sold through a vending machine or in an individual-sized portion — one labeled as one serving or under 2.5 ounces — which is taxable. Taxable: soft drinks (sweetened nonalcoholic drinks; juice that is more than 50% fruit or vegetable juice is not a soft drink), candy, ice, vitamins and supplements, and prepared food — meals and food ready for immediate consumption from restaurants, delis and similar places, food sold heated or heated by the seller, and items the seller mixes into a single item. Bakery items sold by a bakery stay exempt, and raw meat, fish, poultry and eggs that the buyer must cook remain exempt.