Taxes in Texas for retirees
A single retiree with $60,000 of income and a $350,000 home pays about $7,045 a year in Texas income, property and sales tax. That is $626 a year more than the middle state, and ranks 28 of 47 states from lowest to highest.
Where the $7,045 comes from
| Tax | Per year | How we got it |
|---|---|---|
| State income tax | $0 | Standard deduction, no credits. Source |
| Property tax | $4,585 | Statewide typical rate of 1.31% of home value. Your county and exemptions will differ. Source |
| Sales tax | $2,460 | 6.25% state plus 1.95% average local on the spending you list as taxable. Source |
| Total counted | $7,045 | Every yearly tax above is included. |
Tax on what you leave behind
This state charges no estate or inheritance tax. Federal estate tax is separate.
Ways to lower your Texas property tax
School tax homestead exemption for age 65+ or disabled
Takes an extra $60,000 off your home's value for school district taxes (on top of the standard homestead exemption)
Apply by: before May 1. Source
School district tax ceiling (freeze) for age 65+ or disabled
School district tax on your home cannot rise above what you paid the year you first qualified, apart from new improvements
The state page gives no deadline. Source
Property tax deferral for age 65+ or disabled homeowners
Lets you postpone paying property taxes on your home until you leave it, with 5% yearly interest and a lien
The state page gives no deadline. Source
What this assumes
- A single filer with $60,000 a year, all of it taxable income such as a pension or retirement account withdrawals.
- Social Security is not counted, because states treat it differently. Your state may also exempt some retirement income, which would lower the income tax.
- A $350,000 home taxed at the state's typical rate, and $30,000 a year of spending that carries sales tax.
- City and county income taxes are not included. Your county may charge more or less property tax than the state typical.
General information, not tax advice. Rates change each year, so confirm with your state tax agency. See all 47 states ranked.