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Wage Comparison in Texas
Compare Your Texas Salary
Texas offers competitive salaries with NO state income tax, making it one of the most tax-friendly states in the nation. The state’s diverse economy includes energy, technology, aerospace, agriculture, and manufacturing, with major employment centers in Houston, Dallas-Fort Worth, Austin, San Antonio, and El Paso.
- • Compare by Houston, Dallas, Austin, San Antonio areas
- • Benefit from NO state income tax
- • Factor in energy, tech, and aerospace sectors
Texas Salary Factors
Houston: Energy, aerospace, healthcare
Dallas-Fort Worth: Finance, tech, logistics
Austin: Technology, government
San Antonio: Military, healthcare, tourism
NO state income tax!
Average Salary in Texas
Texas Industry Averages
Texas has the second-largest economy in the United States, driven by energy, technology, aerospace, agriculture, and manufacturing. The state’s business-friendly environment and lack of state income tax attract both companies and workers. Major metropolitan areas like Houston, Dallas-Fort Worth, Austin, and San Antonio offer diverse employment opportunities with competitive salaries enhanced by tax advantages.
Energy Sector
$85,000
Average annual salary
Technology
$95,000
Average annual salary
Healthcare
$72,000
Average annual salary
Manufacturing
$58,000
Average annual salary
Texas Salary Factors
- • NO state income tax
- • Major energy hub
- • Growing tech sector
- • Strong aerospace industry
- • Diverse economy
- • Business-friendly climate
Texas Minimum Wage
Texas State Minimum Wage
Texas follows the federal minimum wage of $7.25 per hour as of 2025. The state has not enacted its own minimum wage law above the federal rate. However, the lack of state income tax means minimum wage workers in Texas keep more of their earnings compared to workers in states with income taxes. Many cities and employers voluntarily pay above minimum wage due to market competition.
Texas Minimum Wage
$7.25
per hour (Federal Rate)
Annual Full-Time
$15,080
40 hours/week, 52 weeks
Texas vs Neighboring States
Tipped Workers
Tipped Minimum Wage
$2.13
per hour (with tips to reach $7.25)
Tax Advantage: Texas’s lack of state income tax means minimum wage workers keep more of their earnings, effectively increasing their purchasing power.
Texas Tax Information
Understanding Texas Taxes
Texas is one of only seven states with NO state income tax, making it extremely tax-friendly for workers and businesses. The state relies on sales tax (6.25% state rate), property taxes, and business taxes for revenue. Texas also has no state inheritance tax or personal property tax on intangible assets, making it attractive for both workers and retirees seeking to maximize their take-home pay.
Federal Income Tax
Progressive rates from 10% to 37% based on income
TX State Income Tax
NO STATE INCOME TAX!
Sales Tax
6.25% state + local taxes (total 6.25-8.25%)
Social Security Tax
6.2% on income up to $168,600 (2025 limit)
Medicare Tax
1.45% on all income, plus 0.9% on income over $200,000
Texas Tax Structure
NO State Income Tax
Texas does not tax personal income, meaning you only pay federal taxes on your earnings. This results in significantly higher take-home pay compared to states with income taxes.
Sales Tax
Texas has a 6.25% state sales tax with local taxes bringing the total to 6.25-8.25%. Most goods and services are taxable, with some exemptions for necessities like groceries and prescription drugs.
Property Tax
Texas has higher property tax rates (average 1.80%) but offers homestead exemptions and other deductions to qualifying homeowners.
Business Taxes
Texas has a franchise tax on businesses but no corporate income tax, contributing to its business-friendly reputation.
Tax Advantage
With no state income tax, Texas workers typically have 5-10% higher take-home pay compared to workers in states with income taxes, making it one of the most tax-advantaged states for employees.