Taxes in Allen, Texas
Complete tax guide for Allen, TX. No state income tax, 1.8% property tax, 9.06% sales tax. Calculate your total tax burden.
State Income Tax
None
Texas
Property Tax
1.8%
Effective rate
Sales Tax
9.06%
Combined rate
Tax Burden
Moderate
Allen, TX Tax Overview
No state income tax; higher property taxes compensate
Population
105,623
Median Income
$98,000
Cost of Living
106.2 (100 = avg)
State Income Tax
None
Median Home Price
$395,000
Allen Tax Calculator
Pre-filled with Allen median: $98,000
Total Tax Burden in Allen
$20,671
Take-Home: $77,329 · Effective Rate: 21.09%
Federal Tax
$13,174
13.44% eff.
TX State
$0
0.00% eff.
FICA
$7,497
7.65% eff.
Take-Home
$77,329
78.91% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $98,000.00 | $8,166.67 |
| Federal Income Tax | -$13,174.00 | -$1,097.83 |
| Texas State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$6,076.00 | -$506.33 |
| Medicare (1.45%) | -$1,421.00 | -$118.42 |
| Take-Home Pay | $77,329.00 | $6,444.08 |
Property Tax in Allen
Median Home
$395,000
Annual Tax
$7,110
Monthly Tax
$593
Effective Rate
1.8%
Sales Tax in Allen
Combined Rate
9.06%
State Portion
~6.6%
Local Portion
~2.5%
The combined sales tax rate in Allen is 9.06%, which is above the national average of 7.12%. On a $100 purchase, you would pay $9.06 in sales tax.
Tax Burden Comparison
| Tax Type | Allen | Texas Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.8% | ~1.8% | 1.1% |
| Sales Tax | 9.06% | ~9.06% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Allen Residents
- Texas has no state income tax, meaning your income is only subject to federal taxes and FICA. Consider investing your tax savings into a Roth IRA for tax-free growth.
- Property tax in Allen (1.8%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 9.06% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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LowCalculate Your Full Texas Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Allen, TX?
Allen, Texas has no state income tax. The property tax rate is 1.8% and the combined sales tax rate is 9.06%. No state income tax; higher property taxes compensate
How much is property tax in Allen?
The effective property tax rate in Allen is 1.8%. On the median home price of $395,000, this equals approximately $7,110 per year or $593 per month. This is above the national average of 1.1%.
What is the sales tax rate in Allen?
The combined sales tax rate in Allen is 9.06%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Allen's tax burden compare to other cities?
Allen has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 25.2%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 106.2 (100 = national average).
Are there any local taxes in Allen?
Allen does not impose a separate local or city income tax. Residents pay no state income tax, federal income tax, and FICA (Social Security and Medicare). No state income tax; higher property taxes compensate