Education Savings Bond Interest Exclusion in Texas 2026
Calculate your education savings bond interest exclusion tax savings in Texas. Texas has no state income tax, so savings come from the federal level.
Texas Tax Overview
No income tax (constitutionally prohibited). Second-highest property taxes (1.68%). High sales tax.
Education Savings Bond Interest Exclusion Savings Calculator for Texas
Federal Savings
$1,100
22% bracket
Texas State
$0
0% rate
Total Savings
$1,100
22.0% combined
At a 22.0% combined tax rate in Texas, every $1,000 in deductions saves you $220 in taxes.
Savings by Tax Bracket in Texas
Texas has no state income tax — savings are from federal taxes only.
Eligibility Requirements
Taxpayers who cash Series EE or I bonds for qualified education expenses
- 1Bonds must be Series EE or I issued after 1989
- 2Owner must be at least 24 when bond was issued
- 3Used for qualified higher education expenses
- 4Income phase-outs apply
Common Mistakes to Avoid
- !Buying bonds in child's name instead of parent's
- !Not meeting the age requirement at issuance
- !Exceeding income limits for the exclusion
Texas Filing Tips
No income tax saves significantly. High property taxes offset for homeowners. Texas offers homestead exemption and property tax freeze for 65+. Protest assessments annually.
Required Tax Forms
File these forms with your federal tax return to claim the education savings bond interest exclusion.
Other Tax Deductions in Texas
Student Loan Interest Deduction
Education
American Opportunity Tax Credit
Education
Lifetime Learning Credit
Education
529 Plan Contributions
Education
Coverdell Education Savings Account
Education
Educator Expense Deduction
Education
Employer-Required Education
Education
Education Savings Bond Interest
Education
Education Savings Bond Interest Exclusion in Neighboring States
Tax Calculators for Texas Cities
Calculate Your Full Tax Savings in Texas
Use our free tax calculators to optimize your entire tax return for Texas.
Frequently Asked Questions
How much can I save with the Education Savings Bond Interest Exclusion in Texas?
In Texas, the education savings bond interest exclusion can save you an estimated $1,100 per year on a $5,000 deduction. This includes $1,100 in federal tax savings. The national average savings is $500/year.
What is the Texas state income tax rate?
Texas has no state income tax, which means the education savings bond interest exclusion only provides federal tax savings for Texas residents. No income tax (constitutionally prohibited). Second-highest property taxes (1.68%). High sales tax.
Who qualifies for the Education Savings Bond Interest Exclusion in Texas?
Taxpayers who cash Series EE or I bonds for qualified education expenses. The eligibility requirements are the same whether you live in Texas or another state, as this is a federal tax deduction. However, your total savings will vary based on Texas's lack of state income tax.
What tax forms do I need to claim the Education Savings Bond Interest Exclusion in Texas?
To claim the education savings bond interest exclusion, you need to file Form 8815 and Form 1040 with your federal return. Filing status affects your deduction limits and tax bracket.
Is the Education Savings Bond Interest Exclusion better in Texas than in states without income tax?
Since Texas has no state income tax, the education savings bond interest exclusion only reduces your federal tax bill. Residents in states with income tax get additional state-level savings. However, Texas residents often benefit from lower overall tax burden.
What is the standard deduction in Texas for 2026?
Texas has no state income tax, so there is no state standard deduction. The federal standard deduction for 2026 is $14,600 for single filers and $29,200 for married filing jointly.
Related Calculators
Student Loan Interest Deduction in Texas
Avg savings: $550/year
American Opportunity Tax Credit in Texas
Avg savings: $2,200/year
Lifetime Learning Credit in Texas
Avg savings: $1,500/year
529 Plan Contributions in Texas
Avg savings: $1,000/year
Coverdell Education Savings Account in Texas
Avg savings: $300/year
Educator Expense Deduction in Texas
Avg savings: $66/year