State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Texas State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Texas

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The Bottom Line
Flag of Texas

Mixed Tax Picture

The Lone Star State is a place of extremes. There's no income tax at all. On the other hand, sales taxes run high, as do property taxes. As befits a place that pumps a lot of oil out of the ground, fuel taxes are low.

Income Tax Range

Texas has no state income tax.

Sales Tax

6.25% state levy. Localities can add up to 2%, with an average combined rate of 8.19%, according to the Tax Foundation.

Groceries: Exempt
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In Texas, the median property tax rate is $1,692 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 20¢ per gallon.
Diesel: 20¢ per gallon.

Sin Taxes

Cigarettes: $1.41 per pack
Snuff and chewing tobacco: $1.22 per ounce
Cigars: $0.01 to $0.15 per cigar, depending on weight

Beer: $0.20 per gallon
Wine: $0.20 per gallon ($0.52 if sparkling)
Liquor: $2.40 per gallon

Annual Car Taxes and Fees

An annual vehicle registration fee is imposed. Additional local fees may apply.

Estate and Inheritance Taxes

No estate or inheritance tax.


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