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Texas Tax Burden Revealed: 12.59% Without Income Tax

3/5/2026

32 5 Full Breakdown

Summary

Story summary

WalletHub's study finds Texans pay 1.49% of income in real estate taxes and an effective total tax rate of 12.59% ($9,351) for a median household.
Texas ranks ninth for total state and local taxes despite having no state income tax.
Alaska has the lowest burden at 6.94%, while New York is second highest at 14.95%.
The study emphasizes that no-income-tax states do not necessarily have the lowest overall tax rates.

History

Historical Context

In 2012, Texas enacted significant tax reforms that shifted the state's revenue reliance to property taxes, averaging $9,351 per resident annually. Despite having no state income tax, Texas ranked ninth in total tax burden, contrasting sharply with New York's effective tax rate of 14.95%. This situation underscores the ongoing debate about tax structures and fiscal policies across the United States.

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Story summary

WalletHub's study finds Texans pay 1.49% of income in real estate taxes and an effective total tax rate of 12.59% ($9,351) for a median household.
Texas ranks ninth for total state and local taxes despite having no state income tax.
Alaska has the lowest burden at 6.94%, while New York is second highest at 14.95%.
The study emphasizes that no-income-tax states do not necessarily have the lowest overall tax rates.

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