Texas Income Tax

There is no individual state income tax in Texas. Residents of the state do not file state tax returns, only federal ones.

Texas is among 7 states that do no levy state income tax. Other states in the list are: Alaska, Florida, Nevada, South Dakota, Washington and Wyoming.

At the present moment the state legistative bodies discuss Texas Income Tax Ban Amendment (HJR 5) – a constitutional amendment that is expected to come into effect on November 7, 2017. Introduced by Rep. Mike Schofield (R-132), it is likely to prohibit the state legislature from levying a tax on the incomes of individuals.

Section 1(c) of Article 8 will be ammended and a Section 24-a to Article 8 of the Texas Constitution will be added.


Federal Income Tax

All citizens of the U.S. are supposed to file their income tax returns annually by April 15th.

The Federal Income Tax is based on six marginal tax brackets. They are also called tax tables/rate schedules and are published annually on the website of the Internal Revenue Service or IRS. Tax brackets are used for the calculation of the federal taxes owed by an individual with regards to each their income.

Six marginal tax brackets range from a low of 10% to a high of 39.6%. More precise and accurate estimation of one’s income tax is done in the process of filling in the completing Form 1040.

Since 2013 the 7th tax bracket was introduced by the American Taxpayer Relief Act of 2012. This new 39.6% tax bracket applies at the present moment to income over $413,200 (in cases of single taxpayers). No alternations were applied to other six rates (10%, 15%, 25%, 28%, 33% and 35).

There are four tax brackets types with regards to the status of an individual who files.

  1. Single – applies to all single filers. This set has got the narrowest bracket width and the individual income tax is the highest here.
  2. Married Filing Jointly – applies to all legally married couples filing togehter. As a result, the first three tax brackets’ width is doubled, the highest four brackets are expanded.
  3. Head of Household – applies to all single individuals with one or more dependants. Here tax brackets are wider if comapred to single brackets.
  4. Married Filing Separately – applies to all legally married couples filing separately. This is not a frequent situation as it results in higher taxes than when filed jointly.

There is also the Alternative Minimum Tax (AMT) for some high-income taxpayers.

Tax brackets 2017


It is importatn to understand that:

  • the federal tax brackets apply to your gross adjusted income
  • all tax deductions (e.g. dependant exemptions, business expenses, etc) should be made prior to applying the brackets.
  • In case you qualify for any tax credits, they should be deducted from your total tax owed (after marginal tax rates are calculated).

More useful information for the coming tax season can be found on IRS official website.

2017 income tax return is due on April 15th, 2018. At the present moment the IRS is accepting eFiled tax returns, so you have several options for filing.

Calculate your income tax amount here.