Retirement Tax Breakdown for Texas Residents

Complete Texas retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #10 of 51.

State Income Tax
No income tax
Capital Gains Rate
0%

Treated as capital income

Property Tax Rate
1.63%

#5 (Very Low)

Sales Tax Rate
8.2%

State 6.25% + local avg 8.2%

Tax-Friendly State

Texas has no state income tax. Social Security, pensions, and capital gains are all tax-free. However, property taxes are among the highest in the nation.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax0%
Capital gains0%
Property tax1.63% effective
Sales tax8.2% combined
Overall retiree rank#10 of 51

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