Taxes in Austin, Texas
Complete tax guide for Austin, TX. No state income tax, 1.78% property tax, 8.25% sales tax. Calculate your total tax burden.
State Income Tax
None
Texas
Property Tax
1.78%
Effective rate
Sales Tax
8.25%
Combined rate
Tax Burden
Very High
Austin, TX Tax Overview
No state income tax; tech hub (Silicon Hills); rapidly rising home prices
Population
961,855
Median Income
$80,954
Cost of Living
111.8 (100 = avg)
State Income Tax
None
Median Home Price
$440,000
Austin Tax Calculator
Pre-filled with Austin median: $80,954
Total Tax Burden in Austin
$15,617
Take-Home: $65,337 · Effective Rate: 19.29%
Federal Tax
$9,424
11.64% eff.
TX State
$0
0.00% eff.
FICA
$6,193
7.65% eff.
Take-Home
$65,337
80.71% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $80,954.00 | $6,746.17 |
| Federal Income Tax | -$9,423.88 | -$785.32 |
| Texas State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$5,019.15 | -$418.26 |
| Medicare (1.45%) | -$1,173.83 | -$97.82 |
| Take-Home Pay | $65,337.14 | $5,444.76 |
Property Tax in Austin
Median Home
$440,000
Annual Tax
$7,832
Monthly Tax
$653
Effective Rate
1.78%
Sales Tax in Austin
Combined Rate
8.25%
State Portion
~5.8%
Local Portion
~2.5%
The combined sales tax rate in Austin is 8.25%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.25 in sales tax.
Tax Burden Comparison
| Tax Type | Austin | Texas Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.78% | ~1.78% | 1.1% |
| Sales Tax | 8.25% | ~8.25% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Austin 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 Austin (1.78%) 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 8.25% 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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Very HighCalculate 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 Austin, TX?
Austin, Texas has no state income tax. The property tax rate is 1.78% and the combined sales tax rate is 8.25%. No state income tax; tech hub (Silicon Hills); rapidly rising home prices
How much is property tax in Austin?
The effective property tax rate in Austin is 1.78%. On the median home price of $440,000, this equals approximately $7,832 per year or $653 per month. This is above the national average of 1.1%.
What is the sales tax rate in Austin?
The combined sales tax rate in Austin is 8.25%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Austin's tax burden compare to other cities?
Austin has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 33.1%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 111.8 (100 = national average).
Are there any local taxes in Austin?
Austin 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; tech hub (Silicon Hills); rapidly rising home prices