Texas Taxes for Tax Year 2025 (Filed 2026): Sales, Property, and Key Rules
Texas is unusual compared with most states because individuals do not file a Texas state income tax return. For Tax Year 2025 (Filed 2026), most Texas specific tax planning is about sales and use tax rules, property taxes, and business filings that may apply if you own an LLC, corporation, or other entity.
| Quick Snapshot | What It Means In Practice |
| State Income Tax For Individuals | No Texas income tax return for wages, self employment income, retirement income, or investment income. You still file federal taxes. |
| Sales And Use Tax | State rate is 6.25%. Local jurisdictions can add up to 2%, with a maximum combined rate of 8.25%. |
| Property Tax | No state level property tax bill. Property tax is local, deadlines matter. |
| Common Homeowner Deadlines | Protest deadline is usually May 15 or 30 days after the notice of appraised value is delivered, whichever is later. Payment is typically due by January 31 to avoid delinquency on February 1. |
| Common Business Deadline | Texas franchise tax reports are generally due May 15, with a next business day rule if it falls on a weekend or holiday. |
Texas State Income Tax
Most people do not file any Texas income tax return for 2025. That includes W-2 wages, 1099 income, self employment income, interest, dividends, capital gains, and retirement income. You still file your federal return as usual.
Two common situations can still create state tax paperwork even if you live in Texas:
- You moved to Texas from another state during 2025 and may still need a part year return for the prior state.
- You lived in Texas but earned income sourced to another state, such as rental income from property located in that state.
Example 1
You lived in another state from January through August 2025, then moved to Texas in September 2025.
- In 2026 you file a federal return for all of 2025.
- You may also file a required part year return for the prior state, and any required nonresident returns if you had income sourced to other states.
- You do not file a Texas income tax return.
Texas Sales And Use Tax Rules
Texas taxes many retail sales of tangible personal property and some services. Texas has a statewide sales and use tax rate of 6.25%. Cities, counties, transit authorities, and special purpose districts may impose local sales and use tax, up to a combined cap. The maximum combined rate is 8.25%.
| Sales And Use Tax Item | Rule |
| State Rate | 6.25% |
| Maximum Local Add On | 2.00% |
| Maximum Combined Rate | 8.25% |
Use tax is the companion to sales tax. If a seller does not collect Texas tax on a taxable purchase delivered into Texas, the buyer may still owe Texas use tax at the applicable rate. Local rates can matter, depending on where the item is delivered or used.
Example 2
You buy a $300 taxable item in Texas in November 2025 and the combined applicable rate is 8.25%.
Tax = $300 × 0.0825 = $24.75
Total paid = $300 + $24.75 = $324.75
Example 3
In December 2025 you order a $1,000 taxable item online, shipped to your Texas address, and the seller does not charge Texas tax at checkout.
- If the purchase is taxable in Texas, you may owe use tax.
- A practical habit is to save the invoice and shipping documents so you can show what tax was or was not collected.
Online Shopping And Remote Sellers
Texas has specific rules for remote sellers. A key threshold is based on total Texas revenue in the preceding twelve calendar months. If a remote seller exceeds $500,000, the seller is generally required to obtain a permit and begin collecting and remitting state and local use tax on Texas sales.
Texas Property Taxes
Texas property tax is local, not state level. Local taxing units set rates and collect the tax. Bills, rates, and due dates can vary by county and taxing unit, but several statewide deadlines are common for homeowners.
Two Deadlines That Matter Most For Homeowners
| Deadline | Typical Timing | Why It Matters |
| Protest Deadline | Usually May 15 or 30 days after the notice of appraised value is delivered, whichever is later | Missing the window can limit your ability to challenge the value |
| Payment Deadline | Typically pay by January 31 to avoid delinquency on February 1 | Delinquency can trigger penalties and interest |
Example 4
Assume this sequence for a typical homeowner:
- Spring 2025: you receive your notice of appraised value. If you disagree, you generally file a protest by May 15 or 30 days after the notice is delivered, whichever is later.
- Fall 2025: local taxing units finalize tax rates and bills are issued.
- January 31, 2026: in most cases, last day to pay without delinquency.
- February 1, 2026: unpaid taxes are considered delinquent and penalties and interest typically begin.
Homestead and Other Exemptions
Texas offers exemptions that can reduce the taxable value of your property for certain local taxes. Property owners generally must apply. A common general filing deadline for a residence homestead exemption application is April 30 of the year for which you are requesting the exemption, with special timing rules that can apply in certain situations.
Example 5
You are comparing taxable value before and after an exemption for one portion of the bill.
- Appraised value: $350,000
- Exemption applied to that portion: $140,000
- Taxable value for that portion: $350,000 − $140,000 = $210,000
To estimate the tax impact for that portion, multiply the taxable value by the relevant rate. Rates vary widely by location and taxing unit, so use this as a planning estimate, then confirm using the rates shown on the actual bill.
Business Taxes Texans Run Into, Even Without An Income Tax Return
Many Texans own an LLC or corporation, or run an online business. That can trigger Texas business filings even though individuals do not file a Texas income tax return.
Texas Franchise Tax
The most common statewide business filing is the Texas franchise tax. Annual franchise tax reports are generally due May 15, and the due date shifts to the next business day if May 15 falls on a weekend or holiday.
Practical Checklist
- File your federal return normally, there is no Texas income tax return for individuals.
- If you own a home, calendar the spring protest window and the January payment deadline.
- If you own a business entity, calendar the May 15 franchise tax filing deadline.
- Keep receipts for large out of state purchases delivered into Texas in case use tax applies.
Texas Taxes FAQs:
Do I File A Texas State Income Tax Return For 2025?
Most people do not. Texas does not generally require an individual income tax return.
What Is The Most Important Texas Tax If I Am A Homeowner?
Property taxes, because they are often the largest Texas specific tax many residents pay, and deadlines can be strict.
When Do 2025 Property Taxes Become Delinquent?
In most cases, unpaid property taxes become delinquent on February 1, after the January 31 payment deadline.
What Is The Usual Deadline To Protest My Appraised Value?
Usually May 15 or 30 days after the notice of appraised value is delivered, whichever is later.
Do Online Sellers Have To Collect Texas Sales Tax?
Remote sellers above the $500,000 threshold generally must obtain a permit and begin collecting by the required timeline.
If A Website Did Not Charge Me Tax, Am I Done?
Not always. If the item is taxable in Texas and the seller did not collect tax, use tax may still apply.
Does Texas Have A State Property Tax?
No. Property taxes are local in Texas.
Does My LLC Have Texas Filings Even If There Is No Income Tax?
Possibly. Many entities must file franchise tax reports.
