Texas tax deductions and write-offs (2026)

No. Texas has no state personal income tax, so military retired pay is not taxed. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.

No. Texas has no individual income tax, so pensions and 401(k)/IRA withdrawals are not taxed by the state. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.

No. Texas has no individual income tax, so Social Security benefits are not taxed by the state. The Texas Constitution (Art. VIII, s. 24-a) bars a tax on individuals' net income. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.

No: Texas has no income tax, so there's no state EITC to claim. No state individual income tax and no state EITC. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.

Yes, and it's usually your best option: Texas has no income tax, so itemizers deduct sales tax instead (6.25% state rate, about 8.2% with local taxes). Vehicles pay a flat 6.25% motor vehicle sales tax with no local add-on; other purchases add local tax of up to 2%.

No: Texas doesn't offer a renter's credit or rent rebate. Texas has no state income tax and no renter credit or rent rebate. Texas homestead exemptions, including the larger exemptions and tax ceiling for those 65+ or disabled, apply only to owner-occupied homes. With no income tax to deduct, renters who itemize federally can deduct sales tax instead (6.25% state rate, about 8.2% with local).

Yes: with no state income tax, Texans often fill the SALT cap with property taxes plus sales tax.

No: Texas doesn't base registration on your car's value, so it isn't deductible as personal property tax. Cars and light trucks pay a flat $50.75 base fee plus $1 and flat county fees; sales tax is paid once at purchase.

Texas has no personal income tax; most residents rely on sales tax (6.25% plus local up to 8.25%) and some of the nation's higher property taxes, both usable in the federal SALT deduction.

No: Texas has no state income tax, so there's nothing to deduct 529 contributions from. No personal income tax, so no state deduction for Texas College Savings Plan, LoneStar 529, or Texas Tuition Promise Fund.

No: Texas has no income tax, so there's no state child tax credit. No state individual income tax, so no state child or dependent care credits. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.

Yes, as a business expense: Texas charges $300 to form an LLC; ongoing: None (no SOS annual report; Public Information Report filed with franchise tax). Franchise tax; no tax due if annualized total revenue is at or below $2.65M (2026-2027 reports). Rates 0.375% retail/wholesale, 0.75% other. Franchise tax report and Public Information Report due May 15 annually even when no tax is due.