Taxes in Houston, Texas
Complete tax guide for Houston, TX. No state income tax, 1.72% property tax, 8.25% sales tax. Calculate your total tax burden.
State Income Tax
None
Texas
Property Tax
1.72%
Effective rate
Sales Tax
8.25%
Combined rate
Tax Burden
Moderate
Houston, TX Tax Overview
No state income tax; high property taxes fund local government; energy industry capital
Population
2,304,580
Median Income
$55,650
Cost of Living
96.5 (100 = avg)
State Income Tax
None
Median Home Price
$275,000
Houston Tax Calculator
Pre-filled with Houston median: $55,650
Total Tax Burden in Houston
$8,897
Take-Home: $46,753 · Effective Rate: 15.99%
Federal Tax
$4,640
8.34% eff.
TX State
$0
0.00% eff.
FICA
$4,257
7.65% eff.
Take-Home
$46,753
84.01% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $55,650.00 | $4,637.50 |
| Federal Income Tax | -$4,639.50 | -$386.63 |
| Texas State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$3,450.30 | -$287.53 |
| Medicare (1.45%) | -$806.93 | -$67.24 |
| Take-Home Pay | $46,753.28 | $3,896.11 |
Property Tax in Houston
Median Home
$275,000
Annual Tax
$4,730
Monthly Tax
$394
Effective Rate
1.72%
Sales Tax in Houston
Combined Rate
8.25%
State Portion
~5.8%
Local Portion
~2.5%
The combined sales tax rate in Houston 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 | Houston | Texas Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.72% | ~1.72% | 1.1% |
| Sales Tax | 8.25% | ~8.25% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Houston 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 Houston (1.72%) 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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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Houston, TX?
Houston, Texas has no state income tax. The property tax rate is 1.72% and the combined sales tax rate is 8.25%. No state income tax; high property taxes fund local government; energy industry capital
How much is property tax in Houston?
The effective property tax rate in Houston is 1.72%. On the median home price of $275,000, this equals approximately $4,730 per year or $394 per month. This is above the national average of 1.1%.
What is the sales tax rate in Houston?
The combined sales tax rate in Houston is 8.25%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Houston's tax burden compare to other cities?
Houston has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 27.9%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 96.5 (100 = national average).
Are there any local taxes in Houston?
Houston 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; high property taxes fund local government; energy industry capital