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Retirement planning for Texas.

No state income tax. Run your projection. free

Run your projection — free

Texas at a glance (2026)

Top combined rate

37%

State tax model

None

Standard deduction

$16,100

RMD start age

73

No state income tax

Texas does not levy a state income tax. Your 401(k)/IRA withdrawals, Roth conversions, Social Security, and investment gains are taxed only at federal rates (10-37%).

What this means for your retirement

Texas retirement planning insights

Texas has no state income tax — your combined top rate is the federal 37%, making it one of the most tax-efficient states for retirement withdrawals

With no state tax, Roth conversions in Texas cost only the federal rate. Converting during low-income early retirement years can lock in 10-22% total tax on money that would otherwise be taxed at higher rates in the future

Texas retirees keep 100% of Social Security, pension income, and investment gains at the state level — withdrawal sequencing still matters for federal tax, but the state component is zero

The trade-off: Texas has higher property taxes (averaging 1.6-1.8% of home value) which offsets some of the income tax savings, especially for homeowners

Frequently asked questions

Is Texas a good state to retire in for taxes?

For income tax purposes, Texas is among the best — zero state income tax means 401(k)/IRA withdrawals, Roth conversions, Social Security, and investment gains are taxed only at federal rates. The trade-off is higher property taxes (averaging 1.6-1.8%) and sales tax (6.25% state + local).

Should I do Roth conversions in Texas?

Texas is one of the best states for Roth conversions because you pay only federal tax on the conversion — no state tax layer. If you're in low-income early retirement years, converting at 10-22% federal can save tens of thousands compared to later RMD-forced withdrawals at higher rates.

How does no state tax affect withdrawal strategy?

Without state tax, your withdrawal strategy focuses purely on federal bracket management — staying under the 22% bracket ($98,900 MFJ), managing Social Security taxation thresholds ($32K/$44K combined income), and avoiding the 3.8% NIIT above $250K MFJ.

See your Texas numbers.

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