Texas: Who Pays? 7th Edition
Texas
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All figures and charts show 2024 tax law in Texas, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.5 percent) state and local tax revenue collected in Texas.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $21,700 | $21,700 to $40,800 | $40,800 to $73,900 | $73,900 to $134,200 | $134,200 to $290,000 | $290,000 to $744,800 | Over $744,800 |
| Average Income in Group | $12,600 | $31,100 | $56,300 | $102,000 | $181,100 | $434,300 | $2,658,800 |
| Sales & Excise Taxes | 8.1% | 7.3% | 6.2% | 5.1% | 4% | 2.6% | 1.5% |
| General Sales–Individuals | 3.7% | 3.7% | 3.2% | 2.6% | 2% | 1.1% | 0.2% |
| Other Sales & Excise–Ind | 1.8% | 1.1% | 0.8% | 0.6% | 0.4% | 0.2% | 0% |
| Sales & Excise–Business | 2.6% | 2.5% | 2.2% | 1.9% | 1.6% | 1.2% | 1.2% |
| Property Taxes | 4.5% | 3.7% | 3.5% | 3.6% | 3.1% | 3.5% | 2.7% |
| Home, Rent, Car–Individuals | 3.7% | 2.9% | 2.7% | 2.9% | 2.3% | 2.5% | 0.5% |
| Other Property Taxes | 0.8% | 0.9% | 0.8% | 0.8% | 0.9% | 1% | 2.2% |
| Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Personal Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Other Taxes | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.4% |
| TOTAL TAXES | 12.8% | 11.2% | 9.9% | 8.8% | 7.2% | 6.2% | 4.6% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Texas has the 7th most regressive state and local tax system in the country. Income disparities are larger in Texas after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Texas
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Requires combined reporting for the Texas franchise tax
Sales tax base excludes groceries
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No tax credits to offset sales, excise, and property taxes
Comparatively high reliance on sales and excise taxes
Gross receipts tax in lieu of a corporate profits tax
Does not levy a tax on estates or inheritances
Comparatively high reliance on property taxes
No personal income tax
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