No Personal Income Tax in Texas (see: details below)
Texas does not impose a personal income tax on individuals. The Texas Constitution expressly prohibits the state legislature from enacting such a tax. Readers seeking the full legislative background, adoption history, details of the November 5, 2019 Proposition 4 vote, effects of the prohibition, administrative consequences, and context on historical/recent amendments (including capital gains) should refer to the more detailed section below: Texas imposes no personal income tax. This lead section exists for the sake of prominent headline clarity only—as is common in state guides covering the nonexistence of a tax—while all deeper analysis and specific citations are consolidated below to avoid duplication and future editorial drift.
For the core legal rule: Article 8, Section 24-a of the Texas Constitution states: "The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income." Source: Tex. Const. art. 8, § 24-a
Because the prohibition is in the Texas Constitution, any future attempt to impose a personal income tax would require a constitutional amendment adopted by (1) a two-thirds vote in both the Texas House of Representatives and the Texas Senate, and (2) a majority vote of Texas voters in a statewide election.
Texas residents remain subject to federal income tax obligations under the Internal Revenue Code, but not Texas state personal income tax. For franchise (margin) tax coverage, consult the appropriate business entity tax guides.
Caution / Review Status
Consolidation/clarification edit per reviewer editorial flag. Not yet human confirmed. This section is intended only as a concise headline summary with a pointer to the fuller legal, historical, and procedural background consolidated below. Do not duplicate deeper coverage of adoption dates, vote tallies, capital gains, etc., here—see Texas imposes no personal income tax.
Franchise Tax Is Not a Personal Income Tax
Although Texas has no personal income tax, the state imposes a franchise tax on business entities doing business in or organized in Texas. This franchise tax is legally distinct from an income tax and is not subject to the constitutional prohibition.
The franchise tax is imposed on each taxable entity that does business in Texas or is chartered or organized in Texas. "Taxable entity" includes partnerships, limited liability partnerships, corporations, limited liability companies, business trusts, professional associations, and other legal entities. The tax is calculated based on the entity's taxable margin, not net income, and is characterized as a privilege tax for doing business in the state.
Source: Tex. Tax Code § 171.001
Because the franchise tax applies to business entities rather than individuals, it does not violate the Texas Constitution's prohibition on taxing "the net incomes of individuals, including an individual's share of partnership and unincorporated association income."
Caution / Review Status
Not yet human confirmed. This section addresses the franchise tax only to distinguish it from personal income tax. Practitioners needing detailed franchise tax guidance should consult the Texas corporate income tax or gross receipts tax guide (the franchise tax is sometimes called the "margin tax"). Single-member LLCs and other pass-through entities may be subject to franchise tax even when the individual owner has no Texas personal income tax liability.
No State Income Tax Withholding Requirement for Employers
Texas employers have no obligation to withhold state income tax from employee wages. Because Texas does not impose a personal income tax, there is no state withholding requirement, no state withholding form equivalent to the federal W-4, and no state withholding tax return to file.
The Texas Comptroller's official payroll resource for state agencies addresses only federal income tax withholding obligations under the Internal Revenue Code and makes no reference to any state income tax withholding requirement, confirming the absence of such a requirement in Texas.
Employers must still withhold and remit federal income tax, Social Security, and Medicare taxes in accordance with federal law.
Source: Texas Payroll/Personnel Resource – Income Tax Withholding
Retirement Income Not Subject to Texas Tax
Texas does not tax retirement income. Because the Texas Constitution prohibits the state from imposing any tax on the net incomes of individuals, retirement distributions—including pensions, 401(k) withdrawals, IRA distributions, annuities, and Social Security benefits—are not subject to Texas taxation. No separate exemption or exclusion is required; these forms of income are untaxed because Texas has no personal income tax.
Source: Tex. Const. art. 8, § 24-a
Process to Amend the Income Tax Prohibition
Repealing or amending the Texas constitutional prohibition on personal income tax requires a two-step process. First, the Texas Legislature must approve a joint resolution proposing the constitutional amendment by a two-thirds vote of all members elected to each chamber—at least 100 votes in the House of Representatives and 21 votes in the Senate. Second, a simple majority of voters must approve the amendment in a statewide election. The governor's signature is not required for constitutional amendments.
Source: Tex. Const. art. 17, § 1
Texas imposes no personal income tax
Texas does not impose a personal income tax on individuals. The Texas Constitution expressly prohibits the Texas Legislature from enacting any tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income.
Constitutional Prohibition
Article 8, Section 24-a of the Texas Constitution provides: "The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income." This prohibition was adopted by Texas voters on November 5, 2019, as Proposition 4, with approximately 74.66% approval according to the Texas Secretary of State's certified results. The amendment both repealed the prior Section 24 (which had allowed the legislature to enact an income tax subject to voter approval via referendum) and added Section 24-a, which categorically bars any individual income tax.
Capital Gains Constitutional Amendment
A separate 2025 constitutional amendment (Proposition 2, approved by voters on November 4, 2025) further prohibited any state tax on realized or unrealized capital gains for individuals, families, estates, and trusts. This provision is now codified as Article 8, Section 24-b of the Texas Constitution and became effective upon canvass of the election results in November 2025. The operative language added to the Constitution reads: "The legislature may not impose a tax on the realized or unrealized net capital gains of an individual, family, estate, or trust."
Effect of the Prohibitions
Because these prohibitions are embedded in the Texas Constitution rather than merely in statute, any future attempt to impose a personal income tax or a tax on capital gains at the individual level would require a constitutional amendment. Under Article 17, Section 1 of the Texas Constitution, a constitutional amendment requires a two-thirds vote in both houses of the Texas Legislature, followed by approval by a majority of Texas voters in a statewide election.
What Is Not Taxed
Texas does not tax wages, salaries, self-employment income, capital gains (realized or unrealized), interest, dividends, pension distributions, Social Security benefits, IRA withdrawals, or any other form of individual income at the state level.
No Administrative Procedures for a Nonexistent Tax
Because Texas imposes no personal income tax or tax on individual capital gains, there are no Texas administrative procedures—no notices of deficiency, no administrative appeals, no statute of limitations on assessments or refunds, and no voluntary-disclosure or private-letter-ruling mechanisms—related to those taxes. Texas residents remain subject to federal income tax administered by the IRS, but all state-level personal income tax procedures are inapplicable.
Historical Note
Texas has never enacted a broad-based personal income tax. The state's revenue structure relies primarily on sales and use taxes, property taxes (levied by local jurisdictions), and the franchise tax (a business tax on certain entities' margins). The 1993 constitutional amendment (Senate Joint Resolution 49) first required voter approval before any personal income tax could take effect; the 2019 and 2025 amendments replaced that requirement with prohibitions.
Source: Tex. Const. art. VIII, § 24-a Source: Tex. Const. art. VIII, § 24-b Source: Texas Secretary of State — 2019 Constitutional Amendment Election — Official Canvass Report Source: Texas Legislative Council, Proposition 2 Analysis, November 2025 Source: Enrolled S.J.R. 18, 89th Legislature (2025)
Certified vote result for Proposition 4 (2019)
Certified Vote Result for Proposition 4 (2019 Constitutional Amendment)
Proposition 4, which amended the Texas Constitution to prohibit the state from imposing a personal income tax, was approved by Texas voters in the statewide election held on November 5, 2019. According to the certified vote canvass published by the Texas Legislative Reference Library, the official results for Proposition 4 (H.J.R. 38, 86th Legislature) are as follows:
- For: 1,477,373 votes (approx. 74.33%)
- Against: 509,547 votes (approx. 25.67%)
The certified approval percentage is approximately 74.33% as reported in the official legislative records. Previous references to 1,467,994 for/498,463 against, and a 74.66% approval rate, were based on preliminary or secondary sources. The numbers have been updated here to reflect the legislative library’s official certified results.
Reference Table:
- For: 1,477,373 votes (74.33%)
- Against: 509,547 votes (25.67%)
Local Personal Income Tax Prohibition — No Authority for Local Jurisdictions
Texas law clearly prohibits local jurisdictions—including cities, counties, and special districts—from imposing personal income taxes. This prohibition is established by the structure of the Texas Constitution and the absence of enabling legislation.
Direct Authority and Reasoning
- Article 8, Section 24-a of the Texas Constitution expressly bars the Texas Legislature from enacting a personal income tax. Local governments in Texas possess only those taxing powers granted to them by the state constitution or explicit statutory authority. There is no provision in the Texas Constitution or Texas statutes granting local jurisdictions the authority to impose a personal income tax on individuals.
- The general grant of local powers (Article 11, Section 5 of the Texas Constitution) is silent on authorizing income taxes and instead addresses powers related to property tax, sales and use taxes, and municipal governance.
- As confirmed in Section 10 of this guide, the Texas constitutional framework and statutory silence together function as an affirmative barrier to any local personal income tax.
Summary No city, county, or local district in Texas may lawfully enact or administer a personal income tax. This applies categorically and is supported by constitutional and statutory structure rather than mere absence of practice.
Source: Tex. Const. art. 8, § 24-a Source: Tex. Const. art. 11, § 5
No Texas Filing or Reporting Obligation for Remote Work Performed for Out-of-State Employers
If you are a Texas resident working remotely for an employer located in another state that imposes personal income tax (such as California or New York), you have no Texas income tax filing or payment obligation related to that work.
Direct answer Texas imposes no personal income tax. Under Article VIII, Section 24-a of the Texas Constitution, the Legislature is categorically prohibited from enacting a tax on the net incomes of individuals—including wages, salaries, partnership income, and other forms of personal income. As a result, Texas residents—regardless of where their employer is located or where income is earned—owe no personal income tax to Texas on remote work and have no related filing or reporting obligations with the Texas Comptroller.
Why The constitutional ban is unqualified. It precludes Texas from enacting, administering, or enforcing any tax, withholding, or filing system for personal income—whether sourced from Texas-listed employment or any remote work for out-of-state employers. There are no sourcing, allocation, withholding, or resident credit rules for personal income tax in Texas because the underlying tax does not exist. Employers also have no state-level payroll withholding obligations for Texas personal income tax. (For federal and other states’ tax, separate rules apply.)
Source support
- Authority source: Texas Constitution, Article VIII, Section 24-a – prohibition on personal income tax (statutes.capitol.texas.gov)
Caution / review status Not yet human confirmed. The constitutional text is categorical; there is no inference or extrapolation. However, neither the Texas Comptroller nor other official guidance addresses remote-work scenarios specifically. Some out-of-state employers or taxing jurisdictions may have their own rules for remote workers; Texas law does not require any filing or reporting.
Source: Tex. Const. art. 8, § 24-a
No Evidence of Local Personal Income Tax Proposals or Legal Rulings in Texas
Direct answer As of June 2026, there is no evidence from primary authority—statute, Texas Attorney General opinion, Comptroller statement, or court decision—that any Texas city, county, or local jurisdiction has ever proposed, enacted, or tested the imposition of a personal income tax. There is also no published opinion, official statement, or court holding directly stating that local personal income taxes are unauthorized or invalid under current Texas law.
Why The Texas Constitution, Article VIII, Section 24-a, categorically prohibits the state Legislature from imposing a tax on the net incomes of individuals but does not expressly address local governments. Local governments in Texas may only levy taxes expressly authorized by the Constitution or state statute—a structure commonly known as the Dillon Rule. There is no statutory or constitutional provision granting local taxing authority over personal income, nor is there any official record of a local jurisdiction attempting to enact such a tax. A thorough review of published Attorney General opinions and Comptroller statements yields no direct discussion of local personal income tax authority or its prohibition. While property and sales taxes are routinely authorized at the local level, there is no parallel mechanism for a local personal income tax in the Texas Constitution or Tax Code.
Source support
- Authority source: Texas Constitution, Article VIII, Section 24-a (state-level ban on personal income tax)
- Classification/context: Absence of any primary source—statute, AG opinion, Comptroller bulletin, or court decision—documenting local attempts, legal challenges, or explicit prohibition of local personal income taxes.
Caution / review status Not yet human confirmed. Extensive search of Texas constitutional, statutory, Comptroller, Attorney General, and judicial sources found no direct answer about local personal income tax prohibition or authority. Update this section if a primary source is later discovered or a local attempt arises.
Source: Tex. Const. art. 8, § 24-a
Special Categories of Individual Income (Lottery Winnings, Alimony, Awards, etc.)—State and Local Tax Treatment in Texas
Texas does not impose any state or local tax on lottery winnings, alimony, awards, gambling prizes, or any other special category of individual income. The Texas Constitution categorically prohibits the state legislature from enacting a tax on the net incomes of individuals, which is interpreted to include all forms of individual income with no exceptions for category.
Scope of the constitutional prohibition Article 8, Section 24-a of the Texas Constitution provides: “The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income.” This language is broad and unqualified. There is no Texas statute or regulation enumerating exceptions or carve-outs for lottery winnings, alimony (received or paid), awards, or gambling winnings. As a result, all such income is categorically outside the reach of Texas state and local income taxation.
No local income tax Texas law does not authorize local jurisdictions (cities, counties, or special districts) to impose a personal income tax, including on these special categories. The Texas Constitution, Texas Tax Code, and structure of local taxing authority are silent on providing any such power to local governments. Thus, all forms of income, regardless of category, are exempt from both state and local taxation in Texas.
Source: Tex. Const. art. 8, § 24-a
No Part-Year or Nonresident Individual Income Tax Return in Texas
Direct answer Texas does not require (and does not permit) filing a part-year resident or nonresident individual income tax return, because Texas imposes no state-level personal income tax on individuals—regardless of residency status or source of income.
Why The prohibition on personal income tax is categorical and applies to all individuals, whether full-year Texas residents, part-year residents, or nonresidents who earn Texas-source income. There is no statute, regulation, Comptroller rule, or administrative publication authorizing the imposition or reporting of a state personal income tax for any residency category. The Texas Tax Code does not contain resident/nonresident allocation provisions commonly found in income tax states (such as Cal. Rev. & Tax. Code §§ 17014–17016 or N.Y. Tax Law §§ 601, 605). No form, return, or administrative instruction exists for part-year or nonresident individuals because the underlying tax regime does not exist.
The Texas Comptroller of Public Accounts confirms, in publications and on its official website, that neither Texas residents nor nonresidents pay individual income tax to the state, and there are no state requirements to file an individual income tax return under any filing status.
Source support
- Authority: Texas Constitution art. 8, § 24-a (prohibition on individual income tax)
- Authority: Silence of the Texas Tax Code and Comptroller guidance confirms the absence of any individual filing regime for part-year or nonresident income tax
Caution / review status Not yet human confirmed. The answer is categorical, grounded in constitutional language. No Texas authority uses the terminology “part-year resident” or “nonresident return” outside the business franchise tax context (which applies only to entities). If state or local law changes to authorize such a regime—or if parallel terminology is adopted for another tax—this section should be updated to reflect the authority.
Source: Tex. Const. art. 8, § 24-a