Retiring in Texas: how your income is taxed
Texas is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Texas
Texas has no state income tax on wages or retirement income, so Social Security, pensions and retirement-account withdrawals are not taxed by the state.
Calculate your Texas retirement taxes
State income tax in Texas: $0 a year
In Texas, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Texas you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Texas ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Texas
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $0 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Texas's main exclusions and may differ for income-tested credits.
Moving to Texas in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Texas come from (IRS migration data, 2022–2023).
- California to Texas
- Florida to Texas
- Louisiana to Texas
- New York to Texas
- Colorado to Texas
- Illinois to Texas
Frequently asked questions
Does Texas tax Social Security?
Not taxed. Texas has no state income tax.
Does Texas tax pensions?
Not taxed. Texas has no state income tax.
Does Texas tax 401(k) and IRA withdrawals?
Not taxed. Texas has no state income tax.
Is Texas a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Texas charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: comptroller.texas.gov. Rules reviewed .