Texas does not impose an individual income tax

# Summary

Texas does not impose an individual (personal) income tax. There is no Texas individual income tax return, no withholding on wages, and no filing requirement.

Since November 5, 2019 this has been an express constitutional prohibition rather than a matter of legislative choice: Article VIII, Section 24-a of the Texas Constitution forbids the legislature from imposing a tax on the net incomes of individuals. The prohibition reaches through pass-through entities — it names "an individual's share of partnership and unincorporated association income" explicitly.

Scope: this determination is about the tax on individuals. Texas does impose an entity-level franchise tax on many businesses under Chapter 171, Tax Code. See "What Texas does impose" below before relying on this page for an entity question.

# Texas Comptroller statement

The Comptroller of Public Accounts states the position in its own overview of Texas taxation, "A Field Guide to the Taxes of Texas" (publication 96-1774, December 2025 edition), under the heading of what the state does not levy:

"Texans pay federal income taxes but not state or local income taxes."

The same passage records that "Texas does not collect a state property tax" — property taxes in Texas are levied by local governmental entities, school districts, and special purpose districts, not by the state.

# Constitutional basis — Tex. Const. art. VIII, § 24-a

Article VIII, Section 24-a provides in full:

"The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income."

It was added by H.J.R. 38, 86th Legislature, Regular Session (2019), submitted to the voters as Proposition 4 at the election held November 5, 2019, and adopted with 74.4 percent of the vote (Texas Legislative Council, Amendments to the Texas Constitution Since 1876).

The same ballot proposition did two further things that matter to anyone reading the older law:

• It repealed former Article VIII, Section 24, which had permitted a personal income tax if approved by the voters and dedicated the proceeds to education and property tax relief. The voter-approval route no longer exists.
• It amended Article VIII, Section 1(c) to strike the legislature's authority to tax the incomes of "both natural persons and" corporations, leaving only the power to "tax incomes of corporations other than municipal."

This is an outright prohibition and may be cited as one. It is a stronger authority than the constitutional provisions in some other no-income-tax states, which cap a personal income tax by reference to a federal credit rather than forbidding it; here the legislature simply lacks the power, and restoring it would require another constitutional amendment.

# What Texas does impose

This page is limited to the individual income tax. Texas imposes, among other levies:

Franchise tax (Chapter 171, Tax Code). An entity-level tax administered by the Comptroller. Section 171.0002(a) defines "taxable entity" to mean "a partnership, limited liability partnership, corporation, banking corporation, savings and loan association, limited liability company, business trust, professional association, business association, joint venture, joint stock company, holding company, or other legal entity," including a combined group. Section 171.0002(b) excludes: a sole proprietorship; a general partnership whose direct ownership "is entirely composed of natural persons" and whose liability "is not limited under a statute of this state or another state"; a passive entity under § 171.0003; and entities exempt under Subchapter B.

Other state taxes, per the Comptroller's Field Guide: sales and use tax at 6.25 percent on sales, leases and rentals of goods and on taxable services; motor vehicle sales and rental taxes; motor fuel taxes; oil production tax; insurance taxes; cigarette and tobacco taxes; natural gas production tax; alcoholic beverage taxes; hotel occupancy tax at 6 percent of the room rate; and utility taxes.

The pass-through point, stated carefully. Section 24-a means a Texas individual owes no Texas individual income tax on a distributive share of partnership or unincorporated association income. It does not exempt the partnership itself — a partnership or LLC is squarely within the § 171.0002(a) definition of taxable entity and may owe franchise tax. The individual and the entity are different taxpayers, and only the individual is protected by § 24-a.

# Filing consequences

There is no Texas individual income tax return to file, and no Texas individual income tax withholding, estimated payment, or extension regime.

Federal obligations are unaffected — the Comptroller's Field Guide states that Texans pay federal income taxes, and directs nothing about state individual filing because none exists.

A Texas business may still have Comptroller obligations. An entity within § 171.0002(a) may need to file a franchise tax report, and a seller of taxable goods or services must register for sales and use tax. Those duties arise from entity status and business activity, not from personal income.

# Coverage and verification

Tax years covered: 2025.

Verified on 2026-08-12 against the Texas Comptroller's "A Field Guide to the Taxes of Texas" (96-1774, December 2025 edition — the edition current for tax year 2025), the enrolled text of H.J.R. 38 on Texas Legislature Online, and the Texas Legislative Council's amendment history confirming adoption of Article VIII, Section 24-a on November 5, 2019 at 74.4 percent.

No change to Texas's treatment of individual income was identified for tax year 2025. Because § 24-a is a constitutional prohibition, a change would require a further constitutional amendment — a two-thirds vote of each house followed by ratification at an election — rather than ordinary legislation.

# Sources

Tex. Const. art. VIII, § 24-a, as enacted by H.J.R. 38, 86th Leg., R.S. (2019), enrolled text — https://capitol.texas.gov/tlodocs/86R/billtext/html/HJ00038F.htm

Texas Comptroller of Public Accounts, A Field Guide to the Taxes of Texas, Pub. 96-1774 (December 2025) — https://comptroller.texas.gov/transparency/revenue/docs/96-1774.pdf

Texas Legislative Council, Amendments to the Texas Constitution Since 1876 (art. VIII, § 24-a: added 2019/11/05, H.J.R. 38, Prop 4, Adopted, 74.4%) — https://tlc.texas.gov/docs/amendments/constamend1876.pdf

Tex. Tax Code § 171.0002 (definition of taxable entity) and Chapter 171 generally, as published in this library.