What The Current Texas Tax System Costs Texas Households

What the Current Texas Tax System Costs Texas Households
By Will Campbell · October 23, 2026 · Texas Tax Baseline

What the Current Texas Tax System Costs Texas Households

Every current state and local tax in Texas — about $192.3B a year — traced to the households who actually bear it, using the Texas Comptroller’s own incidence study. What families pay at the register, what is hidden in prices, rent and paychecks, how the burden falls on every income group and on Texas businesses, which level of government taxes most, and how Texas compares with other states — statewide, in Dallas County and in South Dallas County’s House District 109.

🕐 31 min read 📋 Present-state baseline 📊 State FY2025 · Property TY2025 · ACS 2024
$192.3B
All Current Texas Taxes
State FY2025 + local TY2025/CY2025
$142.7B
Borne by Texas Households
74% of the total; the rest is exported
43%
Hidden in Prices, Rent and Pay
Share of what households bear
31.7% vs 8.7%
Lowest vs. Highest Fifth
Texas taxes as share of income
◆

Executive Summary

What the current Texas tax system costs Texans, in brief

This analysis counts every current Texas state and local tax — from the state sales and franchise taxes to the property taxes levied by school districts, counties, cities and special districts — and follows each one to the households that finally bear it, using the Comptroller’s own incidence study (TCPA, 2025b). It then relates that burden to household income, spending, rent, living costs and the people of Texas; shows what Texas businesses pay and which level of government — the State, counties, cities, school districts or special districts — taxes most; and compares Texas with the other states, statewide, in Dallas County and in House District 109.

Key Findings
  • The system is large. Texas state and local governments collect $192.3B a year in current taxes. Texas households bear $142.7B of it (74%); the rest falls on people and businesses outside Texas (Sections 1–2).
  • The average household pays about $12,463 a year. That is 11.0% of the average household’s income, and 43% of it never appears on a tax bill — it is hidden in prices, rent, wages and investment returns (Sections 3–4).
  • It takes the most from those with the least. The lowest-income fifth of households gives up 31.7% of its income to Texas taxes, about 16 weeks of income a year; the highest-income fifth gives up 8.7%, about 4.5 weeks. On the Comptroller’s broader income measure the shares are about 24% and 6% — lower, but the same pattern (Section 3).
  • Property tax is the biggest piece, and renters pay it too. Property taxes are 47% of all current Texas taxes. The average renter household bears $12,456 a year in Texas taxes, about the same as a homeowner household ($12,467), on roughly half the income (Section 5).
  • Families renting houses carry the owner’s whole tax bill. A Texas family renting a house or townhome pays about $5,541 a year in property tax through the rent, compared with $2,257 for an apartment renter; Texas renters together pay about $14.3B a year that way (Section 5).
  • Basic needs include a large tax bill. A single adult in Texas needs $45,290 a year to cover basic needs, and about $7,902 of that goes to Texas state and local taxes — 9.1 weeks of work (Section 7).
  • The heaviest load falls on families with the lowest typical incomes. At their median incomes, Texas taxes take an estimated 19.9% from single mothers, 14.4% from Black households and 14.0% from Hispanic households, compared with 10.7% from married couples with children (Section 10).
  • Businesses write most of the checks. Businesses pay first on 57% of current Texas taxes ($110.5B), one of the largest business shares of any state, including 14 taxes levied only on businesses; about 55% of what they pay is passed back to Texas households in prices, wages and returns (Section 11).
  • Low in total, heavy where it hurts. Texas collects less than most states — 8.3% of personal income, 43rd of 50 — but relies on property tax more than all but two states, and independent researchers rank its system among the ten most regressive in the nation (Section 12).
  • Local governments collect more than the State. The State is the largest single taxing tier ($85.6B, 44% of all taxes), but counties, cities, school districts and special districts together collect $106.8B (56%). School districts are the largest local tier at $41.7B, about $2,585 per household, and every tier takes the largest share of income from the lowest-income households (Section 13).
  • Close to home. Dallas County households bear about $12,615 a year (11.1% of income), and House District 109 households about $11,656 (12.0%). The district’s lowest-income fifth gives up 30.0% of its income, and the average district renter pays $4,002 a year in property tax inside the rent (Sections 8–9).

Taken together, the current Texas tax system collects less than most states but takes the largest share of income from households with the least, much of what Texans pay is hidden from the people paying it, and more than half of what businesses pay comes back to Texas households. The State is the largest single taxing tier, but local governments together, led by school districts, collect more (Sections 13–14).

Table
The Current Texas Tax System at a Glance
Headline measures from this analysis
Measure Value Section
All current Texas state and local taxes $192.3B 1
Borne by Texas households $142.7B (74%) 2
Borne outside Texas $49.6B 2
Average Texas taxes per household $12,463 (11.0% of income) 3
Hidden in prices, rent and wages 43% 4
Lowest-income fifth: share of income 31.7% (16 weeks) 3
Highest-income fifth: share of income 8.7% (4.5 weeks) 3
Average renter household / homeowner household $12,456 / $12,467 5
Property tax inside rent: house renter / apartment renter $5,541 / $2,257 5
Paid first by businesses $110.5B (57%) 11
Taxes as share of personal income, Texas vs. U.S. 8.3% vs. 10.1% 12
Largest taxing tier: State / largest local tier: school districts $85.6B / $41.7B 13
House District 109: per household $11,656 (12.0% of income) 9
Table
Texas Taxes by Household Income Group
All current Texas state and local taxes per household, 2025
Income group Mean income Texas taxes per household Share of income Weeks of income
Lowest fifth $17,223 $5,462 31.7% 16.5
Second fifth $48,725 $7,650 15.7% 8.2
Middle fifth $81,206 $10,337 12.7% 6.6
Fourth fifth $128,146 $13,616 10.6% 5.5
Highest fifth $290,434 $25,250 8.7% 4.5
All households $113,147 $12,463 11.0% 5.7
Chart
Share of Income Taken by Texas Taxes
By household income fifth, 2025
Chart
Who Finally Bears Current Texas Taxes
$ billions
Chart
Texas Taxes per Household, by Tier of Government
Average Texas household, 2025
Table
Texas Among the 50 States
Rank 1 = highest
Measure Texas U.S. Rank
State and local taxes per person $5,670 $7,230 33 of 50
State and local taxes as share of personal income 8.3% 10.1% 43 of 50
Property tax share of all state and local taxes 40.9% 29.4% 3 of 50
Effective homeowner property tax rate (median tax ÷ median value) 1.31% — 8 of 50
Business share of state and local taxes (EY/COST) 59.5% 45.8% 5 of 50
ITEP regressivity rank (1 = most regressive) 7th — 7 of 50
1

The Whole Tax System, Counted

Every current state and local tax, from the Capitol down to the special district

Most conversations about Texas taxes stop at two: the property tax bill and the sales tax on a receipt. The real system is much larger, and most of it never shows up on either. To measure what Texans actually carry, this analysis starts by counting every current tax at every level of government.

The State of Texas collected $85.6B in taxes in fiscal year 2025, from the sales and motor vehicle taxes to the franchise, oil and gas production, insurance, fuel, tobacco, alcohol and utility taxes, including the unemployment tax employers pay into the state’s unemployment trust fund (Texas Comptroller of Public Accounts [TCPA], 2025a). Local governments levied $89.4B in property taxes for tax year 2025: $41.7B by school districts, $16.8B by counties, $16.7B by cities and $14.3B by special districts such as hospital, water, college and emergency services districts (Texas Comptroller of Public Accounts, Property Tax Assistance Division [PTAD], 2026a). Cities, counties, transit authorities and special purpose districts received $14.4B in local sales tax in calendar 2025 (TCPA, 2026c). Local utility, vehicle registration, license and other taxes added another $2.9B (U.S. Census Bureau, 2026a).

One set of taxes is deliberately left out. State and local hotel occupancy taxes, about $2.6B a year, are charged to whoever stays in a Texas hotel room, and many of those guests are not Texas households. In 2024, 62 million travelers visited Texas from across the country and around the world, alongside more than 67 million Texans who took overnight trips within the state (Office of the Governor, 2025). Many hotel stays are also business travel paid for by employers. Because much of this tax is paid by visitors and businesses rather than Texas families, and no authoritative source divides it among them, it is excluded rather than estimated.

Together, that is $192.3B in current Texas state and local taxes. Property taxes are the largest single piece at 47%, and sales and use taxes are second at 33%.

Definition

Tax incidence is who finally bears the cost of a tax, as opposed to who writes the check. A store remits sales tax, but the shopper pays it. A landlord pays the property tax, but the tenant pays it through rent. A refinery pays a production tax, but part of it reaches drivers at the pump, workers through pay and owners through lower returns.

Table
Current Texas State and Local Taxes by Family
Latest full year of collections or levies, how much Texas households bear, and how much is exported to non-residents
Tax family Amount Share of total Borne by Texas households Exported share
Property taxes $89.45B 46.5% $63.57B 28.9%
Sales and use taxes $63.59B 33.1% $50.72B 20.2%
Motor vehicle taxes $7.65B 4.0% $7.04B 7.9%
Franchise and business taxes $9.28B 4.8% $5.85B 36.9%
Oil and gas production taxes $8.00B 4.2% $2.85B 64.4%
Insurance taxes $4.51B 2.3% $4.03B 10.5%
Motor fuel taxes $3.92B 2.0% $3.28B 16.2%
Tobacco and alcohol taxes $2.93B 1.5% $2.93B 0.0%
Utility and other taxes $3.03B 1.6% $2.42B 20.2%
All current Texas taxes $192.35B 100.0% $142.70B 25.8%
2

Who Really Pays

Following each tax from the business that remits it to the household that bears it

Texas law requires the Comptroller to study who ultimately pays the state’s major taxes. The most recent edition, published in January 2025, traces eight taxes — the sales, motor vehicle sales, franchise, oil production, natural gas production, gasoline, insurance premium and school property taxes — from the people and industries that first pay them to the households that finally bear them, sorted into five equal groups of Texas households by income (TCPA, 2025b).

The study shows how much of each tax is first paid by businesses rather than by individuals. Individual consumers make 58.6% of sales tax payments; businesses pay the other 41.4% on the supplies, equipment and services they buy. For the school property tax, homeowners make 41.5% of the payments, and owners of business, rental, mineral and other property make the rest. For the franchise, production and insurance premium taxes, businesses make all of the payments (TCPA, 2025b).

Those business payments do not stay with businesses. The study traces them forward into the prices Texans pay and the rent they owe, and backward into the wages Texans earn and the returns Texas owners receive. It also measures how much is exported: borne by out-of-state shoppers, visitors and owners. Applying those shares to every current Texas tax gives this picture:

  1. $81.8B (42.5%) is paid directly and visibly by Texas households — at the register, on the property tax bill, at the title office and at the pump.
  2. $60.9B (31.7%) reaches Texas households indirectly — built into prices, rent, insurance premiums and utility bills, or taken out of paychecks and investment returns.
  3. $49.6B (25.8%) is exported to non-residents.
“Of every dollar in Texas taxes that Texas households bear, about 43 cents never appears on a receipt or a tax bill.”
— Calculations by author from the Texas Comptroller’s tax incidence study and FY2025 collections
How the Comptroller’s Study Is Used Here

The study reports its distributions for fiscal 2027. This analysis applies those shares to actual FY2025 and TY2025 collections. Local sales taxes use the state sales tax distribution because they share the same base. City, county and special district property taxes use the school property tax distribution because they are levied on the same appraisal rolls. About 4% of the total (diesel, utility, payroll, license and smaller taxes) is assigned to the nearest Comptroller distribution, and tobacco and alcohol taxes follow Texas spending on those products (U.S. Bureau of Labor Statistics [BLS], 2024). The study also predates the increase in the school homestead exemption from $100,000 to $140,000 for tax year 2025 (TCPA, 2026b), so the homeowner share of property tax is likely somewhat lower today than shown.

3

What Each Household Bears

All current Texas taxes per household, by income group

Texas has 11,449,769 households (U.S. Census Bureau, 2025). Divided into five equal groups (quintiles) of about 2,289,954 households each, the average household in each group bears the following in current Texas state and local taxes.

In dollars, higher-income households bear more: the top fifth carries $25,250 a year, about 4.6 times the $5,462 borne by the bottom fifth. As a share of income, it runs the other way. The bottom fifth gives up 31.7% of its income to Texas taxes — about 16 weeks of a year’s income — while the top fifth gives up 8.7%, about 4.5 weeks. The middle fifth, with a mean income of $81,206, gives up 12.7%.

The Comptroller’s own figures point the same way. For just the eight taxes in its study, the bottom fifth pays 16.0% of its total income and the top fifth pays 4.0% (TCPA, 2025b). The study measures income more broadly than the Census Bureau does, which is why its percentages are lower than the all-tax figures above.

How income is measured changes the levels, but not the pattern. The Census Bureau’s household money income, used throughout this article, leaves out non-cash benefits such as SNAP and Medicaid and excludes capital gains (U.S. Census Bureau, 2025). The Comptroller counts a broader income: adjusted gross income plus untaxed interest, pensions and Social Security, and the income of households too poor to file a tax return (TCPA, 2025b). Measured against the Comptroller’s broader income, all current Texas taxes take about 24% of the lowest fifth’s income and about 6% of the highest fifth’s, instead of 31.7% and 8.7%. On either measure, the lowest-income households give up roughly 4 times the share the highest-income households do (see the Income Measures tab).

A Second Look: Taxes Against Spending

Income is the measure used throughout this analysis, because it is what a household has to pay its taxes from. As a secondary check, the burden can also be compared with what households spend. The lowest-income fifth includes many retirees, students and people between jobs; in the federal spending survey, that group spent about $37,045 a year (2025 dollars) on reported income of about $14,344, and the average head of household was 55.9 years old (BLS, 2024). Against spending, Texas taxes take about 15% for the bottom fifth and 18% for the top fifth. That comparison does not change the income picture: the households with the least income give up the largest share of it.

Table
Texas Taxes Borne per Household by Income Quintile
All current state and local taxes, 2025; direct = paid visibly, indirect = passed through prices, rent and pay
Household group Income range (2024) Mean income Texas taxes Direct Indirect Share of income Weeks of income
Lowest fifth (Q1) Under $33,235 $17,223 $5,462 $2,842 $2,620 31.7% 16.5
Second fifth (Q2) $33,235–$62,908 $48,725 $7,650 $4,148 $3,502 15.7% 8.2
Middle fifth (Q3) $62,908–$100,044 $81,206 $10,337 $5,697 $4,640 12.7% 6.6
Fourth fifth (Q4) $100,044–$160,370 $128,146 $13,616 $7,947 $5,669 10.6% 5.5
Highest fifth (Q5) $160,370 and up $290,434 $25,250 $15,094 $10,156 8.7% 4.5
All households — $113,147 $12,463 $7,146 $5,317 11.0% 5.7
Chart
Direct and Hidden Texas Taxes per Household
Dollars per household by income quintile, 2025
Table
Two Ways to Measure Income
Current Texas taxes per household against Census income and the Comptroller’s broader income
Income group Texas taxes per household Census mean income (2025) Share of Census income Comptroller mean income (FY2027) Share of Comptroller income
Lowest fifth $5,462 $17,223 31.7% $22,488 24.3%
Second fifth $7,650 $48,725 15.7% $55,114 13.9%
Middle fifth $10,337 $81,206 12.7% $89,928 11.5%
Fourth fifth $13,616 $128,146 10.6% $149,573 9.1%
Highest fifth $25,250 $290,434 8.7% $407,697 6.2%
Chart
Share of Income Under Two Income Measures
All current Texas taxes, by income fifth
4

Paid at the Register vs. Hidden in Prices

Where each household’s Texas tax burden comes from

A household sees only part of its tax burden. The rest arrives through channels that never carry a tax label.

  • Sales tax on business purchases. Groceries, rent and residential utilities are generally not taxed at checkout (Tex. Tax Code ch. 151, 2025), and merchandise a store buys to resell is exempt as well (TCPA, 2025b). But businesses do pay sales tax on the equipment, supplies and taxable services they use to operate — 41% of all state sales tax payments — and that cost moves into the prices of what they sell (TCPA, 2025b).
  • Property tax on business and rental property. Taxes on stores, offices, factories, apartments and rental homes reach households through prices and rent. This is the largest hidden piece of the system.
  • Franchise, production and insurance premium taxes. These are paid entirely by businesses and reach households through prices, insurance premiums, wages and investment returns (TCPA, 2025b).
  • Excise taxes. Cigarette, tobacco, alcohol and diesel taxes are paid upstream and built into the shelf or pump price.

Property and sales taxes dominate every income group. For the bottom fifth, property taxes alone come to $2,320 a year even though most households in that group rent, and only $1,029 of it is paid directly on a homeowner’s bill. Sales and use taxes add $1,991, of which $523 is built into prices.

Table
Texas Taxes per Household by Tax Family and Quintile
Total borne per household, 2025, and the share that arrives indirectly
Tax family Q1 Q2 Q3 Q4 Q5 Hidden share
Property taxes $2,320 $3,126 $4,184 $5,821 $12,308 42%
Sales and use taxes $1,991 $2,922 $3,941 $4,841 $8,453 27%
Motor vehicle taxes $276 $368 $483 $833 $1,116 37%
Motor fuel taxes $160 $220 $305 $332 $417 34%
Franchise and business taxes $160 $284 $446 $590 $1,075 100%
Insurance taxes $222 $237 $365 $435 $502 100%
Oil and gas production taxes $79 $128 $185 $301 $551 100%
Tobacco and alcohol taxes $159 $225 $240 $232 $424 71%
Utility and other taxes $95 $139 $188 $231 $403 100%
All taxes $5,462 $7,650 $10,337 $13,616 $25,250 43%
Chart
What Makes Up Each Household’s Texas Tax Burden
Dollars per household by tax family and income quintile, 2025
5

Renters Pay Too

How the burden divides between homeowners and renters

Renters never receive a property tax bill, but the Comptroller’s study assigns renter households 28.4% of the school property tax and homeowner households 42.7%; the rest is exported (TCPA, 2025b). Texas has 7,134,877 owner households and 4,314,892 renter households (U.S. Census Bureau, 2025). Applying the Comptroller’s tenure shares to every current Texas tax gives these averages:

On average, renter households bear about the same dollars in Texas taxes as owner households — $12,456 compared with $12,467 — on a median income that is roughly half as large ($54,387 compared with $101,734) (TCPA, 2025b) (U.S. Census Bureau, 2025). In the Comptroller’s distribution, renter households also carry more property tax per household than owner households; rental homes and apartments do not qualify for the residence homestead exemption that lowers a homeowner’s taxable value (TCPA, 2026b).

Renting is concentrated at the bottom of the income ladder. In the federal spending survey, 55% of the lowest-income fifth of Texas households rent, compared with 14% of the highest-income fifth (BLS, 2024). For those households, almost all of the property tax they bear is invisible.

How Much of the Rent Check Pays the Landlord’s Property Tax

Every rental owner pays a property tax bill and sets the rent to cover it, but how large that bill is relative to the rent depends on the kind of home. For apartments, owners’ own books show the share. The National Apartment Association’s Dollar of Rent data, built from standardized apartment operating statements (16,353 properties in its 2024 dataset), puts the Texas average at 14.4% of rent revenue in 2025 — 15.9% for market-rate apartments and 13.2% for income-restricted ones. In the Dallas metro the figures are 15.9% and 17.3% (National Apartment Association [NAA], 2025). Two years earlier the shares were higher: in 2023, property taxes took 17.4% of market-rate rent statewide, 17.9% in Dallas, and 19.5% in Austin and San Antonio (NAA, 2025). The Texas Apartment Association told the Senate Finance Committee in 2024 that “approximately 20% of every rent dollar paid by Texas renters goes toward property taxes” (Texas Apartment Association [TAA], 2024), and separate 2026 data put property taxes at 18.1% of market-rate apartment income in Austin, 15.9% in Dallas and 15.6% in Fort Worth (Bajomo, 2026). Texas is well above the national average of about 10% (NAA, 2025).

Houses and Townhomes: The Whole Tax Bill Moves Into the Rent

A family renting a house or townhome is in a different position. The owner of a single rental home pays the full property tax bill on that home and sets the rent to cover it, and rental homes receive no residence homestead exemption (TCPA, 2026b), so the entire appraised value is taxed at the combined rate of every taxing unit. In tax year 2025 those rates averaged about 2.19% of value statewide for a home inside a city — school districts 1.01%, cities 0.53%, counties 0.35% and special districts about 0.30% (PTAD, 2026a). In House District 109’s core cities the combined rate runs from 2.30% in Cedar Hill to 2.44% in DeSoto (PTAD, 2026a).

The Census Bureau does not publish the value of rented homes, so this analysis brackets it between the lower-quartile and median values of owner-occupied homes in each area (U.S. Census Bureau, 2025) (U.S. Census Bureau, 2026b). On that basis, the owner of a typical Texas rental house pays $4,223 to $6,860 a year in property tax — about $5,541 at the midpoint, or $462 a month, roughly 32% of the rent. A Texas apartment renter carries about $2,257 a year, 14.4% of the rent (NAA, 2025) (PTAD, 2026a) (U.S. Census Bureau, 2025). The house renter pays more than twice as much property tax through rent.

This matters because 31% of Texas renter households — 1,337,525 — live in single-family homes or townhomes, and another 12% live in duplexes and other small buildings of two to four units (U.S. Census Bureau, 2025). Counting every type of rental, the average Texas renter household pays about $3,315 a year in property tax through rent, $14.3B across all renters (NAA, 2025) (PTAD, 2026a) (U.S. Census Bureau, 2025). That is only part of what renters carry: the Comptroller’s study assigns the average renter household about $5,883 a year in property tax across every channel (TCPA, 2025b). The rest, about $2,568, reaches renters through the prices of groceries, services and everything else sold from taxed stores, offices and warehouses.

For apartment renters, other published measures put the share the same or higher. The Apartments by Source tab below applies each one to the same apartment renters, including the figure the Texas Apartment Association presented to the Senate Finance Committee.

Table
Texas Taxes per Household: Owners and Renters
All current Texas taxes borne per household, 2025, compared with median household income
Tenure Households Median income (2024) Property taxes borne All Texas taxes borne Taxes vs. median income
Owner households 7,134,877 $101,734 $5,351 $12,467 12.3%
Renter households 4,314,892 $54,387 $5,883 $12,456 22.9%
Table
Property Tax Inside the Rent by Type of Rental Home
Annual property tax paid through rent per renter household, 2025; central estimate with range
Area Rental type Renter households (share) Est. rent per month Property tax in rent (per year) Range Share of rent
Texas Single-family home or townhome 1,337,525 (31%) $1,434 $5,541 $4,223–$6,860 32%
Small multifamily (2–4 units) 533,998 (12%) $1,090 $3,049 $1,888–$4,210 23%
Apartment (5+ units) 2,260,516 (52%) $1,303 $2,257 — 14%
Mobile home / other 182,853 (4%) $877 $891 — 8%
All renters 4,314,892 (100%) $1,299 $3,315 $2,763–$3,868 21%
Dallas County Single-family home or townhome 102,558 (21%) $1,594 $5,681 $4,616–$6,747 30%
Small multifamily (2–4 units) 51,456 (11%) $1,290 $3,526 $2,454–$4,598 23%
Apartment (5+ units) 324,832 (67%) $1,405 $2,673 — 16%
Mobile home / other 4,980 (1%) $921 $936 — 8%
All renters 483,826 (100%) $1,428 $3,383 $3,043–$3,723 20%
House District 109 Single-family home or townhome 9,652 (52%) $1,608 $5,467 $4,606–$6,329 28%
Small multifamily (2–4 units) 1,440 (8%) $1,097 $2,908 $2,086–$3,729 22%
Apartment (5+ units) 6,533 (35%) $1,332 $2,534 — 16%
Mobile home / other 955 (5%) $869 $883 — 8%
All renters 18,580 (100%) $1,436 $4,002 $3,491–$4,513 23%
Table
Apartment Renters: Property Tax Inside the Rent by Source
Each published measure of the property-tax share of apartment rent, applied to Texas and House District 109 apartment renters
Source Texas share Texas apartment renter (per year) All Texas apartment renters (per year) Dallas-area share HD109 apartment renter (per year) All HD109 apartment renters (per year)
NAA Dollar of Rent, all apartments, 2025 (used in this analysis) 14.4% $2,257 $5.10B 15.9% $2,534 $17M
NAA Dollar of Rent, market-rate apartments, 2025 15.9% $2,481 $5.61B 17.3% $2,767 $18M
NAA Dollar of Rent, market-rate apartments, 2023 17.4% $2,719 $6.15B 17.9% $2,855 $19M
NAA Expense Watch (Yardi Matrix), market-rate, 2026 — — — 15.9% $2,542 $17M
Texas Apartment Association testimony to the Senate Finance Committee, 2024 20.0% $3,127 $7.07B 20.0% $3,198 $21M
6

What Texas Households Spend

The spending patterns that carry the tax burden

Taxes travel through spending, so where households spend shapes where taxes land. The most recent Texas-specific spending survey by income group covers 2022–2023; the Bureau of Labor Statistics stopped producing state tables in 2026, making it the final edition (BLS, 2024) (BLS, 2026). The figures below are converted to 2025 dollars using the Dallas–Fort Worth consumer price index for each category (BLS Southwest Information Office, 2026).

Housing takes 43% of what the bottom fifth spends and 29% of what the top fifth spends. Groceries, utilities and transportation also take larger shares at the bottom. Those are the categories where hidden property, sales and business taxes are embedded in rent, prices and bills.

A Survey That Undercounts

The federal spending survey captures about half of all Texas consumer spending recorded in the national accounts — roughly 43% of restaurant spending and 40% of clothing (BLS, 2024) (U.S. Bureau of Economic Analysis [BEA], 2026b). That is one reason this analysis takes the level of directly paid sales tax from the Comptroller’s study and uses the survey only to divide it among income groups.

Table
Average Annual Spending per Texas Household by Income Quintile
Selected categories, 2025 dollars (consumer units)
Category Q1 Q2 Q3 Q4 Q5 All
Total spending $37,045 $51,419 $59,627 $82,879 $140,351 $75,328
Groceries $3,051 $3,455 $4,442 $5,699 $7,751 $4,914
Restaurants and takeout $2,014 $2,410 $3,533 $4,386 $9,358 $4,380
Housing (all) $15,774 $19,213 $20,550 $26,813 $41,097 $24,965
  Rent $6,133 $6,790 $5,560 $6,215 $4,363 $5,791
  Owned home costs $3,586 $4,449 $6,008 $8,597 $18,293 $8,357
  Utilities and phone $3,753 $4,573 $5,395 $6,052 $7,423 $5,483
Transportation (all) $7,955 $7,210 $12,795 $16,662 $26,450 $14,444
  Vehicle purchases $3,511 $1,473 $4,710 $6,670 $12,984 $5,990
  Gasoline $1,573 $1,999 $2,676 $3,005 $3,539 $2,583
Health care $2,922 $4,335 $4,408 $6,254 $8,947 $5,443
Entertainment $1,195 $1,977 $1,909 $3,311 $8,207 $3,377
Apparel $832 $877 $1,515 $1,632 $3,734 $1,734
Education $235 $194 $644 $900 $2,257 $869
Personal insurance and pensions $676 $2,520 $5,603 $11,137 $22,060 $8,656
Income before taxes (survey) $14,344 $37,834 $65,534 $111,789 $248,382 $98,312
7

Families and Single Adults

The living-wage test, Texas and Dallas County

Texas has 7,739,539 family households, including 5,574,265 married couples and 2,165,274 single-parent and other families, and 3,013,974 people who live alone — 26% of all households (U.S. Census Bureau, 2025). The MIT Living Wage Calculator estimates what each kind of household needs to cover basic needs without assistance, for Texas as a whole and for each county (Glasmeier, 2026b) (Glasmeier, 2026a). MIT does not publish figures for state House districts; House District 109 lies within Dallas County, so the Dallas County budgets apply there.

Statewide, a single adult needs $45,290 a year before taxes — $21.77 an hour full time — to cover basic needs, and about $7,902 of that budget goes to Texas state and local taxes, roughly 9.1 weeks of work (Glasmeier, 2026b). A family of four with two working parents needs $101,697, of which about $12,011 goes to Texas taxes. Dallas County costs more: a single adult there needs $48,489 ($23.31 an hour), with about $7,672 going to Texas taxes, and a two-earner family of four needs $107,251, with about $12,400 in Texas taxes (Glasmeier, 2026a). Because Texas taxes take a smaller share of income as income rises, the larger Dallas County budgets carry only modestly more in Texas taxes, and for a single adult slightly less ($7,672 vs. $7,902 statewide). MIT notes that its budgets already include sales and property taxes within the cost of food, housing and other needs (Glasmeier, 2026c); these estimates show how large that embedded share is.

Table
Living-Wage Budgets and Estimated Texas Taxes Borne, Texas
MIT basic-needs budgets for Texas as a whole (2025 dollars) with estimated current Texas state and local taxes inside them
Household Living wage (per worker, hourly) Required income before taxes Housing Est. Texas taxes borne Share of income Weeks of income
1 adult, 0 children $21.77 $45,290 $14,679 $7,902 17.4% 9.1
1 adult, 1 child $35.77 $74,391 $18,418 $9,933 13.4% 6.9
1 adult, 2 children $44.95 $93,487 $18,418 $11,386 12.2% 6.3
2 adults (1 working), 2 children $37.39 $77,772 $18,418 $10,144 13.0% 6.8
2 adults (both working), 0 children $14.67 $61,036 $15,452 $8,896 14.6% 7.6
2 adults (both working), 2 children $24.45 $101,697 $18,418 $12,011 11.8% 6.1
Table
Living-Wage Budgets and Estimated Texas Taxes Borne, Dallas County
MIT basic-needs budgets for Dallas County, including House District 109 (2025 dollars), with estimated current Texas state and local taxes inside them
Household Living wage (per worker, hourly) Required income before taxes Housing Est. Texas taxes borne Share of income Weeks of income
1 adult, 0 children $23.31 $48,489 $17,805 $7,672 15.8% 8.2
1 adult, 1 child $37.90 $78,832 $21,732 $10,206 12.9% 6.7
1 adult, 2 children $47.71 $99,239 $21,732 $11,830 11.9% 6.2
2 adults (1 working), 2 children $38.88 $80,866 $21,732 $10,319 12.8% 6.6
2 adults (both working), 0 children $15.39 $64,034 $18,547 $9,157 14.3% 7.4
2 adults (both working), 2 children $25.78 $107,251 $21,732 $12,400 11.6% 6.0
Chart
Texas Taxes Inside a Living-Wage Budget
Estimated current Texas state and local taxes borne per year at the MIT living-wage budget, Texas vs. Dallas County
8

Dallas County

The county picture, measured the same way

The statewide pattern holds in Dallas County. To compare places on the same footing, this section and the next use the Census Bureau’s 2020–2024 five-year estimates, which are the only Census income data published for state House districts (U.S. Census Bureau, 2026b). Dallas County has 982,737 households with a median income of $76,547, close to the statewide five-year median of $78,476. Its lowest-income fifth averages $17,983 a year and its highest $298,112 (U.S. Census Bureau, 2026b).

No official study traces Texas taxes for a single county, so this analysis applies the statewide burden at each income level to Dallas County’s own income groups. On that basis, Dallas County households bear an estimated $12.40B a year in current Texas state and local taxes — about $12,615 per household, or 11.1% of income.

Half of Dallas County households rent (483,826 of 982,737), compared with 37% statewide (U.S. Census Bureau, 2026b). With more renters, more of the county’s tax burden arrives through rent rather than on a tax bill. Most Dallas County renters (67%) live in apartments, where property tax takes about $2,673 a year of the rent; the 21% who rent a house or townhome carry about $5,681. Across all of the county’s renters, property tax inside rent comes to about $1.64B a year (NAA, 2025) (PTAD, 2026a) (U.S. Census Bureau, 2026b). Dallas County homeowners who do get a bill report paying more than the state average: a median of $4,798 a year, compared with $4,232 statewide over the same five years (U.S. Census Bureau, 2026b).

Table
Estimated Texas Taxes Borne per Household, Dallas County
Current state and local taxes, 2025; statewide burden curve applied to local income groups
Income fifth Households Mean income Texas taxes Direct Indirect Share of income
Q1 196,547 $18,217 $5,685 $2,962 $2,723 31.2%
Q2 196,547 $48,870 $7,667 $4,157 $3,509 15.7%
Q3 196,547 $78,254 $10,173 $5,598 $4,574 13.0%
Q4 196,547 $121,993 $13,299 $7,705 $5,594 10.9%
Q5 196,547 $301,987 $26,254 $15,694 $10,560 8.7%
All households 982,737 $113,864 $12,615 $7,223 $5,392 11.1%
9

South Dallas County: House District 109

Cedar Hill, Lancaster, eastern DeSoto, Glenn Heights, Hutchins, Wilmer, Combine, Ferris and Seagoville

House District 109 has 190,307 residents in 63,170 households (U.S. Census Bureau, 2026b). Its median household income of $76,767 is close to the county and state medians, but its income is spread differently. The district’s lowest-income fifth averages $20,342, more than in the county or the state, and its highest-income fifth averages $215,304, well below the county’s $298,112 (U.S. Census Bureau, 2026b). HD109 is a district of working- and middle-income households, with fewer very high incomes at the top.

Households in HD109 bear an estimated $0.74B a year in current Texas state and local taxes, about $11,656 per household and 12.0% of income. For the district’s lowest-income fifth, the estimate is $6,180 a year, 30.0% of income; for its middle fifth, $10,215, or 12.9% (TCPA, 2025b) (U.S. Census Bureau, 2026b). Most HD109 households own their homes (71%, compared with 63% statewide), and on a median home value of $267,400 they report a median property tax bill of $4,345 — above the state median on a home worth less than the typical Texas home (U.S. Census Bureau, 2026b).

Renting looks different in HD109. Of the district’s 18,580 renter households, 52% live in single-family homes or townhomes, compared with 31% statewide and 21% in Dallas County (U.S. Census Bureau, 2025) (U.S. Census Bureau, 2026b). A family renting a house in the district carries about $5,467 a year in property tax inside the rent — the owner’s whole bill at local rates of 2.3% to 2.4% — compared with $2,534 for an apartment renter, or $3,198 at the 20% figure presented to legislators (PTAD, 2026a) (NAA, 2025) (TAA, 2024) (U.S. Census Bureau, 2026b). Because so many of its renters live in houses, the average HD109 renter household pays about $4,002 a year through rent, more than the state or county average, and $74M across all of the district’s renters.

Table
Estimated Texas Taxes Borne per Household, House District 109
Current state and local taxes, 2025; statewide burden curve applied to local income groups
Income fifth Households Mean income Texas taxes Direct Indirect Share of income
Q1 12,634 $20,606 $6,180 $3,230 $2,950 30.0%
Q2 12,634 $51,668 $7,973 $4,330 $3,644 15.4%
Q3 12,634 $78,992 $10,215 $5,624 $4,592 12.9%
Q4 12,634 $117,910 $13,070 $7,535 $5,534 11.1%
Q5 12,634 $218,103 $20,839 $12,326 $8,513 9.6%
All households 63,170 $97,456 $11,656 $6,609 $5,046 12.0%
Table
Housing and Property Taxes: Texas, Dallas County and HD109
ACS 2020–2024 five-year estimates, 2024 dollars
Area Renter share Median home value Median property tax (owners) Average property tax per owner Median gross rent
Texas 37% $283,800 $4,232 $5,132 $1,403
Dallas County 49% $303,000 $4,798 $6,365 $1,565
HD109 29% $267,400 $4,345 $4,354 $1,767
10

The People of Texas

Who carries the current tax system

The numbers in this article land on real people. Texas is home to 31,290,831 people (U.S. Census Bureau, 2025). 40.3% are Hispanic or Latino, 37.8% are non-Hispanic White, 12.0% are Black and 6.0% are Asian. One in four Texans (24%) is a child, 14% are 65 or older, and the median Texan is 35.9 years old (U.S. Census Bureau, 2025). Dallas County is younger (median age 34.1) and is 41% Hispanic, 26% non-Hispanic White and 22% Black. House District 109 is a majority-Black district: 51% of its residents are Black, 31% Hispanic and 13% non-Hispanic White (U.S. Census Bureau, 2026b).

Because the current system takes a larger share of income from households with less income (Section 3), its weight falls hardest on the groups whose typical incomes are lowest. The estimates below place each group’s median household income on the statewide burden curve to show what Texas state and local taxes take from a household at that income. They are estimates for a typical household in each group, not a separate study of each group.

Race and Ethnicity

The median Texas household earns $80,757 (2025 dollars), and at that income Texas taxes take about 12.8% — $10,313 a year (U.S. Census Bureau, 2025) (TCPA, 2025b). Median incomes differ widely by the race and ethnicity of the householder: $123,560 for Asian households, $96,114 for non-Hispanic White households, $67,359 for Hispanic households and $62,555 for Black households (U.S. Census Bureau, 2025). At those incomes, Texas taxes take an estimated 14.4% of a typical Black household’s income and 14.0% of a typical Hispanic household’s, compared with 12.1% for non-Hispanic White and 10.8% for Asian households. That is 7.5 and 7.3 weeks of income, against 6.3 and 5.6.

Renting adds to the gap. 59% of Black households and 41% of Hispanic households rent, compared with 29% of non-Hispanic White households (U.S. Census Bureau, 2025), so more of their property tax arrives hidden in the rent (Section 5). Poverty rates follow the same pattern: 18.4% of Black Texans and 17.8% of Hispanic Texans live below the poverty line, compared with 8.3% of non-Hispanic White Texans (U.S. Census Bureau, 2025).

Age

Households headed by someone under 25 have a median income of $44,406, and 87% of them rent; at that income Texas taxes take about 17.9%. Householders 65 and older have a median of $59,503, and the estimate at that income is 14.7%, compared with 12.0% for householders 45 to 64 (U.S. Census Bureau, 2025). The senior estimate is likely high for many older homeowners, because school districts must grant homeowners 65 and older an additional $60,000 residence homestead exemption on top of the $140,000 exemption every homeowner receives (TCPA, 2026b); seniors who rent receive neither.

Families With Children

Family structure produces the widest spread. A married couple with children under 18 has a median family income of $125,794, and Texas taxes take an estimated 10.7%. A single mother raising children has a median of $40,464, and the estimate rises to 19.9% — 10.3 weeks of income every year (U.S. Census Bureau, 2025) (TCPA, 2025b). There are 793,333 such families in Texas (U.S. Census Bureau, 2025).

Dallas County and House District 109

Dallas County follows the statewide pattern. Its median household earns $77,542, and the estimate is 13.1%; Black households there have a median of $59,130 and an estimated 14.7% (U.S. Census Bureau, 2026b). House District 109 is different in one important way: Black households, who head 56% of the district’s homes, have a median income of $77,169, about the same as the district as a whole ($77,765), so their estimated share (13.1%) matches the district’s typical household (U.S. Census Bureau, 2026b). The heaviest load still falls on the district’s lowest-income families: single mothers have a median family income of $55,587, for an estimated 15.1%, and the district’s lowest-income fifth gives up 30.0% of its income (Section 9).

Key Findings: The People of Texas
  • Texas taxes take the largest share of income from the groups with the lowest typical incomes: single mothers (19.9%), householders under 25 (17.9%), Black households (14.4%) and Hispanic households (14.0%).
  • A typical single mother gives up about 10.3 weeks of income to Texas taxes, compared with 5.6 weeks for a married couple with children.
  • The groups with the highest tax shares are also the most likely to rent, so much of what they pay is hidden in rent and prices rather than shown on a tax bill.
  • In House District 109, Black households’ median income ($77,169) is well above the Dallas County figure for Black households ($59,130), but the district’s single mothers still give up an estimated 15.1% of income, and its lowest-income fifth 30.0%.
Table
Who Lives in Texas, Dallas County and House District 109
Population, age, race and ethnicity, income and poverty, ACS 2024
Measure Texas Dallas County House District 109
Total population 31,290,831 2,621,179 190,307
Median age (years) 35.9 34.1 35.3
Hispanic or Latino (any race) 40.3% 41.3% 31.0%
White, not Hispanic 37.8% 26.4% 13.2%
Black or African American, not Hispanic 12.0% 22.1% 50.7%
Asian, not Hispanic 6.0% 7.0% 1.4%
All other and multiracial, not Hispanic 3.9% 3.3% 3.6%
Children under 18 24.5% 25.1% 27.6%
Adults 65 and over 14.0% 11.8% 11.5%
Per capita income (2024$) $41,614 $42,559 $32,789
Median household income (2024$) $79,721 $76,547 $76,767
Poverty rate (persons) 13.4% 13.9% 13.1%
Chart
Population by Race and Ethnicity
Share of residents, Texas, Dallas County and House District 109
Table
Estimated Texas Taxes by Group, Texas
Texas state and local taxes at each group’s median income, 2025
Category Group Households Median income (2025$) Est. Texas taxes, share of income Est. Texas taxes per year Weeks of income Renter share
All households All households 11,449,769 $80,757 12.8% $10,313 6.6 38%
Race / ethnicity White, not Hispanic 5,084,982 $96,114 12.1% $11,592 6.3 29%
Hispanic or Latino 3,845,697 $67,359 14.0% $9,428 7.3 41%
Black or African American 1,500,025 $62,555 14.4% $9,030 7.5 59%
Asian 657,365 $123,560 10.8% $13,383 5.6 34%
Age of householder Under 25 536,492 $44,406 17.9% $7,947 9.3 87%
25 to 44 4,308,767 $86,483 12.5% $10,804 6.5 51%
45 to 64 3,990,207 $98,365 12.0% $11,765 6.2 27%
65 and over 2,614,303 $59,503 14.7% $8,756 7.7 21%
Family type Married couple with children under 18 2,353,236 $125,794 10.7% $13,499 5.6 —
Married couple, no children under 18 3,221,029 $112,327 11.3% $12,732 5.9 —
Single mother with children under 18 793,333 $40,464 19.9% $8,052 10.3 —
Single father with children under 18 268,294 $60,910 14.6% $8,884 7.6 —
Chart
Share of Income Taken by Texas Taxes, by Group
Estimated at each group’s median income, Texas, 2025
Table
Estimated Texas Taxes by Group, Dallas County and House District 109
Texas state and local taxes at each group’s median income, 2025
Area Category Group Households Median income (2025$) Est. Texas taxes, share of income Est. Texas taxes per year Weeks of income Renter share
Dallas County All households All households 982,737 $77,542 13.1% $10,130 6.8 49%
Race / ethnicity White, not Hispanic 334,201 $103,606 11.7% $12,148 6.1 39%
Hispanic or Latino 306,427 $69,809 13.8% $9,614 7.2 48%
Black or African American 246,081 $59,130 14.7% $8,721 7.7 63%
Asian 67,702 $110,384 11.4% $12,608 5.9 48%
Age of householder Under 25 48,544 $49,930 15.6% $7,784 8.1 90%
25 to 44 402,212 $82,242 12.7% $10,431 6.6 65%
45 to 64 342,556 $87,431 12.5% $10,885 6.5 37%
65 and over 189,425 $58,968 14.8% $8,706 7.7 27%
Family type Married couple with children under 18 177,025 $108,596 11.5% $12,490 6.0 —
Married couple, no children under 18 236,915 $115,616 11.2% $12,934 5.8 —
Single mother with children under 18 75,776 $40,145 20.1% $8,054 10.4 —
Single father with children under 18 19,445 $51,413 15.5% $7,946 8.0 —
House District 109 All households All households 63,170 $77,765 13.0% $10,144 6.8 29%
Race / ethnicity White, not Hispanic 9,435 $80,580 12.8% $10,303 6.6 23%
Hispanic or Latino 14,800 $79,822 12.9% $10,262 6.7 17%
Black or African American 35,664 $77,169 13.1% $10,108 6.8 36%
Asian 967 $95,793 12.1% $11,568 6.3 13%
Age of householder Under 25 1,063 $50,961 15.5% $7,897 8.1 60%
25 to 44 22,503 $77,907 13.0% $10,152 6.8 40%
45 to 64 26,752 $88,236 12.4% $10,954 6.5 25%
65 and over 12,852 $61,280 14.6% $8,918 7.6 18%
Family type Married couple with children under 18 12,295 $111,410 11.4% $12,674 5.9 —
Married couple, no children under 18 16,447 $111,769 11.4% $12,696 5.9 —
Single mother with children under 18 6,757 $55,587 15.1% $8,379 7.8 —
Single father with children under 18 1,656 $37,175 21.6% $8,019 11.2 —
Chart
Share of Income Taken by Texas Taxes, by Race and Ethnicity
Estimated at the median household income of each group, Texas, Dallas County and House District 109
11

Texas Businesses and the Tax System

What businesses pay, and who finally bears it

Most Texas tax checks are written by businesses. Using the Comptroller’s own split between taxes first paid by individual consumers and taxes first paid by businesses (TCPA, 2025b), businesses pay $110.5B of the $192.3B in current Texas taxes — 57% — and households pay $81.8B directly at the register, on their property tax bills and at the vehicle tax office. An independent estimate reaches nearly the same answer: Ernst & Young’s annual study for the Council On State Taxation finds that Texas businesses paid $108.1B of $181.7B in fiscal 2024 state and local taxes, 59.5% of the total, the 5th-highest business share of any state and well above the national 45.8% (Ernst & Young et al., 2025). Texas also has no personal income tax, which in most other states is a large tax paid mainly by individuals (U.S. Census Bureau, 2026a).

The Taxes Businesses Pay

Property tax is the largest business tax. Of the $108.1B Texas businesses paid in fiscal 2024, $43.2B (40%) was property tax on commercial, industrial, mineral, utility and rental property, $31.4B (29%) was sales tax on the equipment, supplies and services businesses buy to operate, and $13.2B (12%) was excise taxes, including taxes on utilities and insurance (Ernst & Young et al., 2025). The franchise (margin) tax, the closest thing Texas has to a business income tax, was $6.9B — 6% of the total, about half the national share that state corporate income taxes carry (Ernst & Young et al., 2025).

Fourteen state taxes are levied directly on businesses alone, and together they raised $23.0B in fiscal 2025, 27% of all state taxes (TCPA, 2025a). Four tax production at the source: the oil production tax ($5.4B), collected on oil at the wellhead, the natural gas production tax ($2.5B), the oil well service tax ($138.5M) and the cement tax ($11.4M). Nine tax gross receipts, premiums or margins: the franchise tax ($7.1B), the insurance premium and maintenance taxes ($4.5B), the utility gross receipts taxes and assessments, the mixed beverage gross receipts tax, and the taxes on coin-operated machines and combative sports admissions. The fourteenth, the unemployment tax ($2.0B), is levied on employers’ payrolls (TCPA, 2025a).

Businesses also pay the same taxes households pay. They pay 59% of property taxes, 41% of sales and use taxes, 42% of motor vehicle taxes and 44% of motor fuel taxes on the vehicles, fuel and supplies they use (TCPA, 2025b). They also remit the excise taxes on cigarettes, alcohol and motor fuel, which are collected from customers in the price.

Who Finally Bears Business Taxes

A tax a business pays does not stay with the business. It moves forward into prices, backward into wages and the prices paid to suppliers, or onto owners through lower returns, and some of each lands outside Texas (TCPA, 2025b). Of the $110.5B that businesses and visitors pay first, about $60.9B (55%) comes back to Texas households through the prices they pay, the wages they earn and the returns on what they own. The other $49.6B (45%) is borne outside Texas — by out-of-state owners and shareholders, out-of-state buyers of Texas oil, gas and goods, and visitors (TCPA, 2025b). The export is largest for the oil and gas production taxes: 64% is borne outside Texas, compared with 37% of the franchise tax and 29% of property taxes (TCPA, 2025b).

Small and Large Businesses

The Comptroller does not divide taxes by business size, but it does divide them by legal form. Corporations pay 82% of the business-paid franchise tax, 83% of the insurance premium tax, 68% of the business share of school property tax and 72% of the business share of sales tax; partnerships and sole proprietorships, the forms most small firms take, pay the rest (TCPA, 2025b). Texas has 3,517,343 small businesses — 99.8% of all businesses — employing 44.4% of Texas workers, and 3,023,525 of them have no employees (U.S. Small Business Administration [SBA], 2025).

The tax code treats the smallest firms differently. Businesses with total revenue at or below $2.47 million owed no franchise tax for 2024–2025 reports, a threshold that rose to $2.65 million for 2026 (TCPA, 2026a), and sole proprietorships and general partnerships owned by individuals do not owe franchise tax at all (TCPA, n.d.). The property tax exemption for business equipment and other income-producing personal property has since been raised to $125,000 per location, up from $2,500 (PTAD, 2026b) (TCPA, 2025c); that change came after the 2025 tax year measured here. Small businesses still pay sales tax on what they buy to operate and property tax on the buildings they own or, through their rent, the buildings they lease.

Key Findings: Texas Businesses
  • Businesses pay first on 57% of current Texas taxes ($110.5B), one of the highest business shares in the country (59.5% in the EY/COST study, 5th of 50 states).
  • Property tax is the largest business tax, and the 14 state taxes levied only on businesses — led by the franchise, oil and gas production and insurance taxes — raise $23.0B a year.
  • About 55% of what businesses pay is passed back to Texas households in prices, wages and returns; the rest is borne outside Texas.
  • Measured against the size of the economy, Texas business taxes (4.4% of private-sector output) are close to the national average (4.5%) (Ernst & Young et al., 2025).
Table
Who Pays First and Who Finally Bears Each Tax
Current Texas taxes by family: first payer and final incidence
Tax family Total Paid first by consumers Paid first by businesses Business share Passed to Texas households Borne outside Texas
Property taxes $89.4B $37.1B $52.3B 59% $26.4B $25.9B
Sales and use taxes $63.6B $37.2B $26.4B 41% $13.5B $12.9B
Motor vehicle taxes $7.6B $4.4B $3.2B 42% $2.6B $0.6B
Motor fuel taxes $3.9B $2.2B $1.7B 44% $1.1B $0.6B
Franchise and business taxes $9.3B $0.0B $9.3B 100% $5.9B $3.4B
Insurance taxes $4.5B $0.0B $4.5B 100% $4.0B $0.5B
Oil and gas production taxes $8.0B $0.0B $8.0B 100% $2.8B $5.2B
Tobacco and alcohol taxes $2.9B $0.9B $2.1B 71% $2.1B $0.0B
Utility and other taxes $3.0B $0.0B $3.0B 100% $2.4B $0.6B
All taxes $192.3B $81.8B $110.5B 57% $60.9B $49.6B
Chart
Paid First by Consumers or by Businesses
Current Texas taxes by family, $ billions
Table
The 14 State Taxes Levied Directly on Businesses
Fiscal 2025 collections
Tax Type Comptroller object Collected, FY2025 Share of state taxes
Oil production tax Production / output S-3290 $5.4B 6.3%
Natural gas production tax Production / output S-3291 $2.5B 2.9%
Oil well service tax Production / output S-3296 $138.5M 0.2%
Cement tax Production / output S-3136 $11.4M 0.0%
Franchise (margin) tax Gross receipts / margins S-3130,S-3131 $7.1B 8.3%
Gas, electric and water utility tax Gross receipts / margins S-3233 $569.6M 0.7%
Public utility gross receipts assessment Gross receipts / margins S-3230 $78.1M 0.1%
Gas utility pipeline tax Gross receipts / margins S-3234 $50.9M 0.1%
Insurance premium taxes Gross receipts / margins S-3201 $4.4B 5.1%
Insurance maintenance taxes Gross receipts / margins S-3203,S-3214,S-3219,S-3220 $141.8M 0.2%
Mixed beverage gross receipts tax Gross receipts / margins S-3250 $695.6M 0.8%
Coin-operated amusement machine tax Gross receipts / margins S-3150 $10.7M 0.0%
Combative sports admissions tax Gross receipts / margins S-3146 $1.3M 0.0%
Unemployment tax Payroll S-3728,S-3771 $2.0B 2.4%
All 14 business taxes $23.0B 26.9%
Table
Texas Business Taxes by Type, FY2024
EY/COST estimates, compared with the U.S. mix
Tax type Texas Share of Texas business taxes U.S. share
Property taxes $43.2B 40.0% 34.0%
Sales taxes on business inputs $31.4B 29.0% 21.4%
Excise taxes, incl. public utilities and insurance $13.2B 12.2% 11.6%
Franchise (margin) tax $6.9B 6.4% 12.4%
Individual income tax on pass-through business income $0.0B 0.0% 8.1%
Unemployment insurance tax $2.2B 2.0% 3.5%
License and other taxes, incl. severance $11.2B 10.4% 9.0%
Total business taxes $108.1B 100.0% 100.0%
Chart
Business Tax Mix: Texas vs. the U.S.
Share of state and local business taxes by type, FY2024
Table
Business-Paid Taxes by Legal Form
Eight major Texas taxes, fiscal 2027 forecast in the Comptroller’s study
Tax Total Business share of tax Corporations’ share of business-paid Partnerships and sole proprietors’ share
Limited sales and use tax $54,836M 41% 72% 28%
Franchise tax $7,671M 100% 82% 18%
Motor vehicle sales and use tax $6,842M 42% 70% 30%
Oil production tax $6,780M 100% 69% 31%
School property tax $43,991M 59% 68% 32%
Natural gas production tax $3,421M 100% 66% 34%
Gasoline tax $2,946M 24% 61% 39%
Insurance premium tax $4,360M 100% 83% 17%
Table
Where Business-Paid Taxes Finally Land
Taxes first paid by businesses and visitors, by final bearer
Measure Amount Share
Paid first by businesses and visitors $110.5B 100%
Passed to Texas households (prices, wages, returns) $60.9B 55%
Borne outside Texas $49.6B 45%
Chart
Where Business-Paid Taxes Finally Land
Taxes first paid by businesses and visitors, $ billions
12

Texas Among the States

How the Texas tax system compares

Measured in total, Texas is a low-tax state. Its state and local governments collected $5,670 in taxes per resident in fiscal 2024, compared with $7,230 across all 50 states, ranking 33rd-highest of 50; and its taxes equaled 8.3% of Texans’ personal income, against 10.1% nationally, 43rd of 50 (U.S. Census Bureau, 2026a) (BEA, 2026a). Texas is one of five states — with Alaska, Florida, Nevada and Wyoming — where the Census Bureau records no individual income tax revenue at all in fiscal 2024 (U.S. Census Bureau, 2026a).

How Texas raises its money is what sets it apart. Property tax supplies 41% of Texas state and local taxes — the 3rd-highest share in the nation, against 29% nationally — and sales and excise taxes supply 51%, the 8th-highest share (U.S. Census Bureau, 2026a). For a homeowner, the typical (median) property tax bill in 2024 of $4,108 equals 1.31% of the home’s value, the 8th-highest rate of any state (U.S. Census Bureau, 2025).

That mix shapes who pays. The Institute on Taxation and Economic Policy ranks Texas’s state and local tax system the 7th most regressive in the country: it estimates that the lowest-income 20% of Texas families pay 12.8% of their income in state and local taxes and the top 1% pay 4.6%, compared with national averages of 11.4% and 7.2% (Institute on Taxation and Economic Policy [ITEP], 2024). ITEP also notes that Texas is one of five states with no income-targeted property tax relief (ITEP, 2024). The Comptroller’s own study, using different methods, points in the same direction for the eight taxes it covers (Section 3) (TCPA, 2025b). The Tax Foundation, which measures how a tax structure affects competitiveness rather than who bears it, ranks Texas 7th overall, driven by its first-place ranking for having no individual income tax, while ranking it 46th of 50 on corporate taxes (the franchise tax), 38th on property taxes and 36th on sales taxes (Tax Foundation, 2025).

For businesses, Texas sits near the middle once the size of its economy is counted. Businesses carry 59.5% of Texas state and local taxes, the 5th-highest share, but their taxes equal 4.4% of private-sector output, 27th of 50 and close to the 4.5% national average; per employee they pay $9.0 thousand, against $8.6 thousand nationally (Ernst & Young et al., 2025).

Living costs in Texas are a little below the national average: prices are 2.9% below the U.S. level, the 24th-highest price level of 50 states, and the median Texas household income of $79,721 ranks 24th-highest (BEA, 2026a) (U.S. Census Bureau, 2025). After adjusting for prices, per-person income ranks 26th-highest (BEA, 2026a). The low total tax level helps, but because so much of it comes through property and sales taxes, the households with the least income give up the largest share of it.

Key Findings: Texas Among the States
  • Texas collects less than most states: $5,670 per resident (33rd) and 8.3% of personal income (43rd).
  • It relies more on property tax than all but two states (41% of taxes) and has the 8th-highest homeowner property tax rate.
  • Independent studies agree it is among the most regressive systems: ITEP ranks it 7th, with the lowest-income families paying nearly three times the top 1%’s rate.
  • Businesses pay one of the largest shares of taxes (5th), though their burden relative to the economy is about average.
Table
Texas Compared With the 50 States
Rank 1 = highest among the 50 states
Measure Texas United States Texas rank
State and local taxes per person $5,670 $7,230 33 of 50
State and local taxes as share of personal income 8.3% 10.1% 43 of 50
Property tax share of all state and local taxes 40.9% 29.4% 3 of 50
Sales and excise tax share of all state and local taxes 51.3% 35.2% 8 of 50
Property tax per person $2,320 $2,127 15 of 50
Effective homeowner property tax rate (median tax ÷ median value) 1.31% — 8 of 50
Median homeowner real estate tax $4,108 — 12 of 50
Regional price parity (U.S. = 100) 97.1 100.0 24 of 50
Median household income $79,721 — 24 of 50
Real per capita personal income (price-adjusted) $72,313 — 26 of 50
Business share of state and local taxes (EY/COST) 59.5% 45.8% 5 of 50
Business taxes as share of private-sector output (EY/COST TEBTR) 4.4% 4.5% 27 of 50
Business taxes per employee, $ thousands (EY/COST) $9.0K $8.6K 14 of 50
Chart
State and Local Taxes as a Share of Personal Income
All 50 states, FY2024; Texas highlighted
Chart
Property Tax Share of State and Local Taxes
All 50 states, FY2024; Texas highlighted
Table
What Independent Studies Find
Distributional and competitiveness rankings, as published
Study Measure Value Note
ITEP Who Pays? 7th ed. (2024) Texas rank, most regressive state and local tax system (1 = most regressive) 7 Non-elderly taxpayers; 2024 law at 2023 incomes
ITEP Who Pays? 7th ed. (2024) Texas: lowest 20% of families, state and local taxes as share of income 12.8%
ITEP Who Pays? 7th ed. (2024) Texas: middle 20% 9.9%
ITEP Who Pays? 7th ed. (2024) Texas: top 1% 4.6%
ITEP Who Pays? 7th ed. (2024) U.S. average: lowest 20% 11.4%
ITEP Who Pays? 7th ed. (2024) U.S. average: middle 20% 10.5%
ITEP Who Pays? 7th ed. (2024) U.S. average: top 1% 7.2%
Tax Foundation 2026 State Tax Competitiveness Index Texas overall rank (1 = most competitive) 7 Tax structure as of July 1, 2025
Tax Foundation 2026 State Tax Competitiveness Index Corporate tax rank 46
Tax Foundation 2026 State Tax Competitiveness Index Individual income tax rank 1
Tax Foundation 2026 State Tax Competitiveness Index Sales tax rank 36
Tax Foundation 2026 State Tax Competitiveness Index Property tax rank 38
Tax Foundation 2026 State Tax Competitiveness Index Unemployment insurance tax rank 31
Chart
State and Local Taxes as a Share of Family Income
ITEP estimates, Texas vs. the U.S. average, non-elderly families
Chart
Business Share of State and Local Taxes
All 50 states, FY2024 (EY/COST); Texas highlighted
13

Which Level of Government Taxes Texans Most

The state, counties, cities, school districts and special districts compared

Texans pay taxes to five tiers of government: the State of Texas; 254 counties; more than 1,100 cities and about 1,200 school districts that levied a property tax in 2025; and more than 2,300 property-taxing special districts that run hospitals, community colleges, water and utility systems, emergency services, flood control and ports, along with the transit authorities and special purpose districts that levy sales tax (PTAD, 2026a) (TCPA, 2026c). Each tier levies its own taxes, and each is counted here with the same incidence method used throughout this article (TCPA, 2025a) (PTAD, 2026a) (TCPA, 2026c) (U.S. Census Bureau, 2026a) (TCPA, 2025b).

The State is the largest single tier. It collects $85.6B, 44% of all current Texas taxes, almost entirely from sales, motor vehicle, fuel, franchise, production and insurance taxes, and it costs the average Texas household about $5,700 a year. But local governments together collect more: $106.8B, 56% of the total, about $6,763 per household. Among them, school districts are by far the largest. Their property taxes raise $41.7B (22%), more than counties and special districts combined, and cost the average household about $2,585 a year. Cities follow with $28.2B, including $9.1B in local sales tax; special districts raise $18.7B, including $4.5B in transit and special purpose district sales taxes; and counties raise $18.2B (PTAD, 2026a) (TCPA, 2026c) (U.S. Census Bureau, 2026a).

Every tier takes a larger share of income from lower-income households than from higher-income households. For the lowest-income fifth, state taxes take 15.1% of income and school district taxes 6.3%; for the highest-income fifth, they take 3.7% and 2.0% (TCPA, 2025b). The State’s reliance on sales and excise taxes and the local tiers’ reliance on property tax both land hardest on households with less income. Renters carry these local taxes too: the average renter household bears $2,740 a year in school district taxes, compared with $2,492 for the average homeowner household, reflecting that rental homes receive no homestead exemption and their tax is passed through in rent (Section 5).

Texas Businesses, Tier by Tier

Businesses pay first on about the same share of every tier’s taxes, from 54% to 59%. In dollars, the State takes the most from businesses — $49.5B, through the franchise, production, insurance and utility taxes and the sales tax on business purchases — followed by school districts at $24.4B in property tax on commercial, industrial, mineral, utility and rental property. Local governments together take $61.0B from businesses first, more than the State (TCPA, 2025b) (PTAD, 2026a). As Section 11 shows, a little more than half of what businesses pay is passed back to Texas households.

Dallas County and House District 109

In Dallas County, local governments levied $9.5B in property taxes for 2025. School districts levied $4.2B (44%), cities $2.9B (30%), special districts — chiefly the Parkland hospital district and Dallas College — $1.5B (16%), and Dallas County itself $1.0B (10%) (PTAD, 2026a). On a home in House District 109 with no exemptions, the school district accounts for about half of the combined property tax rate: 49% in Cedar Hill, 50% in DeSoto and 52% in Lancaster. The city takes roughly a quarter, Parkland and Dallas College about 14% and the county about 9% (PTAD, 2026a).

Key Findings: Tiers of Government
  • The State is the largest single taxing tier (44% of all Texas taxes, about $5,700 per household), but local governments together collect more (56%).
  • School districts are the largest local tier: $41.7B a year, about $2,585 per household, more than counties and special districts combined.
  • Every tier takes the largest share of income from the lowest-income households, and renters bear local property taxes through their rent.
  • In House District 109, the school district accounts for about half of a home’s property tax rate, the city about a quarter.
Table
Current Texas Taxes by Tier of Government
What each tier collects and what Texas households bear
Tier Collected Share of all taxes Borne by Texas households Per household Per homeowner household Per renter household Borne outside Texas
The State of Texas $85.6B 44% $65.3B $5,700 $5,874 $5,412 $20.3B
Counties $18.2B 9% $13.1B $1,146 $1,109 $1,206 $5.1B
Cities $28.2B 15% $21.0B $1,835 $1,819 $1,861 $7.2B
School districts $41.7B 22% $29.6B $2,585 $2,492 $2,740 $12.1B
Special districts $18.7B 10% $13.7B $1,197 $1,173 $1,237 $5.0B
All tiers $192.3B 100% $142.7B $12,463 $12,467 $12,456 $49.6B
Chart
Who Bears Each Tier’s Taxes
Current Texas taxes by tier of government, $ billions
Table
What Each Tier Taxes
Collections by tax type
Tier Property taxes Sales and use taxes All other taxes Total
The State of Texas $0.0B $49.2B $36.4B $85.6B
Counties $16.8B $0.9B $0.5B $18.2B
Cities $16.7B $9.1B $2.4B $28.2B
School districts $41.7B $0.0B $0.0B $41.7B
Special districts $14.3B $4.5B $0.0B $18.7B
All tiers $89.4B $63.6B $39.3B $192.3B
Table
Each Tier’s Taxes by Household Income
Per household and share of income, by income fifth, 2025
Tier Lowest fifth Second fifth Middle fifth Fourth fifth Highest fifth
The State of Texas $2,599 (15.1%) $3,729 (7.7%) $5,079 (6.3%) $6,461 (5.0%) $10,631 (3.7%)
Counties $482 (2.8%) $653 (1.3%) $874 (1.1%) $1,216 (0.9%) $2,505 (0.9%)
Cities $791 (4.6%) $1,109 (2.3%) $1,491 (1.8%) $1,960 (1.5%) $3,824 (1.3%)
School districts $1,080 (6.3%) $1,456 (3.0%) $1,948 (2.4%) $2,711 (2.1%) $5,732 (2.0%)
Special districts $510 (3.0%) $704 (1.4%) $945 (1.2%) $1,269 (1.0%) $2,558 (0.9%)
All tiers $5,462 (31.7%) $7,650 (15.7%) $10,337 (12.7%) $13,616 (10.6%) $25,250 (8.7%)
Chart
Share of Income Taken by Each Tier
By household income fifth, 2025
Table
Who Pays First, by Tier
Taxes paid first by consumers and by businesses
Tier Collected Paid first by consumers Paid first by businesses Business share
The State of Texas $85.6B $36.0B $49.5B 58%
Counties $18.2B $7.7B $10.5B 57%
Cities $28.2B $12.3B $15.9B 57%
School districts $41.7B $17.3B $24.4B 59%
Special districts $18.7B $8.5B $10.2B 54%
All tiers $192.3B $81.8B $110.5B 57%
Table
Property Tax by Tier: Dallas County and House District 109
Levies and combined rates, tax year 2025
Area County City School district Special districts Total
Dallas County levies, TY2025 $1.0B $2.9B $4.2B $1.5B $9.5B
Texas average (inside a city) (rate per $100) 0.3487 0.5316 1.0136 0.2963 2.1903
Dallas / Dallas ISD (rate per $100) 0.2155 0.6988 0.9938 0.3186 2.2267
Cedar Hill / Cedar Hill ISD (rate per $100) 0.2155 0.6364 1.1279 0.3186 2.2984
DeSoto / DeSoto ISD (rate per $100) 0.2155 0.6849 1.2252 0.3186 2.4442
Lancaster / Lancaster ISD (rate per $100) 0.2155 0.5995 1.2244 0.3186 2.3580
Chart
Who Sets the Property Tax Rate on a Home
Share of the combined rate by tier, tax year 2025
14

Conclusion

What the current system means for Texans

Counted in full, the current Texas tax system collects $192.3B a year from 70 state and local tax sources. Texas households bear $142.7B of it, about $12,463 for the average household, and most of what they pay never appears on a tax bill: it is built into the price of what they buy, the rent they pay and the wages they earn. Businesses write the majority of the checks, but more than half of what they pay comes back to Texas households.

By national standards Texas collects less than most states. But it raises that money mainly from property and sales taxes, which take a larger share of income from households with less of it. The lowest-income fifth of Texas households gives up 31.7% of its income to Texas taxes, more than three times the 8.7% given up by the highest-income fifth. Renters bear about as much as homeowners on half the income; families renting houses carry the owner’s entire property tax bill in their rent; and single mothers, Black and Hispanic households and young householders, whose typical incomes are lowest, carry the largest shares. In South Dallas County’s House District 109, the district’s lowest-income households give up 30.0% of their income.

Every level of government contributes to that pattern. The State collects the most of any single tier, mainly through sales and excise taxes, but counties, cities, school districts and special districts together collect more, mainly through property taxes; school districts alone cost the average household about $2,585 a year. In House District 109, the school district sets about half of a home’s property tax rate.

These are the facts of the system as it stands today. They are the baseline against which any change to how Texas taxes its people and its businesses should be measured.

15

Reading the Data

What these numbers can and cannot tell us

  • The incidence shares are official, but forecast. They come from the Comptroller’s January 2025 study, which reports fiscal 2027 distributions under the law in place at the time (TCPA, 2025b). The next edition is expected for the 90th Legislature.
  • Direct and indirect are separated; the hidden channels are not. Published data do not split the indirect amount among prices, rent, wages and investment returns by income group.
  • Survey years differ. Taxes are FY2025 and TY2025; households and incomes are 2024; spending patterns are 2022–2023 adjusted for prices. The Census Bureau and BLS are scheduled to release 2025 household and national spending data on October 29, 2026, and this baseline will be refreshed when they do.
  • Quintiles are approximate across sources. The Comptroller, the Census Bureau and BLS each divide Texas households into equal fifths, but each uses its own income definition. Section 3 shows the result both ways: Census income gives 31.7% for the lowest fifth and 8.7% for the highest; the Comptroller’s broader income gives about 24% and 6%.
  • Rent figures are measured for apartments and calculated for houses. The apartment share of rent comes from operating statements and varies by market, property type and year (about 14% to 20% in Texas data for 2023–2025). For houses and townhomes it is calculated from 2025 tax rates and home values; because the value of rented homes is not published, owner-occupied values bound a range, and appraisal limits can keep a rental’s taxable value below market.
  • Local figures are estimates. Dallas County and HD109 burdens apply the statewide burden at each income level to local income groups; no official study traces taxes for a county or district. Owner-reported property taxes are actual local data.
  • Hotel taxes are excluded. About $2.6B in state and local hotel occupancy taxes is left out (the local amount is the Census Bureau’s local “other selective sales taxes,” which in Texas is mostly hotel occupancy tax) because much of it is paid by out-of-state visitors and business travel rather than Texas households, and no authoritative source divides it among visitors, businesses and Texans (Office of the Governor, 2025).
  • Group estimates use the statewide curve. Section 10 places each group’s median income on the statewide burden curve. It shows what Texas taxes take at that income, not differences in how each group spends, rents or qualifies for exemptions.
  • Business and state comparisons use other sources. Section 11 pairs the Comptroller’s first-payer shares with an independent business-sponsored estimate (EY/COST) on a different fiscal-year basis. Section 12 uses fiscal 2024 Census tax data for all states, which differs slightly from the fiscal 2025 Texas inventory used elsewhere, and reports ITEP and Tax Foundation rankings as published; the two organizations measure different things.
  • Tiers combine sources. Section 13 assigns each tax to the tier that levies it. A small set of Census local tax lines is split among counties, cities and special districts using each government type’s share in Census unit-level data. School districts also receive state aid paid from state taxes; this comparison counts taxes each tier levies, not what each tier spends. Dallas County and House District 109 figures cover property tax only.
How to Reproduce This Analysis

Every figure in this article can be rebuilt from public data. The companion workbook contains each source table, every formula and a methods sheet; the original files are available here:

  1. State taxes. Comptroller, State of Texas 2025 Annual Cash Report, Table 12 (all funds, by revenue object): https://comptroller.texas.gov/transparency/reports/cash-report/2025/96-368.pdf (TCPA, 2025a).
  2. Property taxes. Comptroller Property Tax Assistance Division, 2025 tax rates and levies for counties, cities, school districts and special districts: https://comptroller.texas.gov/taxes/property-tax/rates/ (PTAD, 2026a).
  3. Local sales taxes. Texas Open Data sales tax allocations, payments in calendar 2025: https://data.texas.gov/dataset/vfba-b57j (cities) and https://data.texas.gov/dataset/qsh8-tby8 (counties, transit authorities and special purpose districts) (TCPA, 2026c).
  4. Other local taxes. Census 2024 state and local government finance individual unit files: https://www.census.gov/data/datasets/2024/econ/local/public-use-datasets.html (U.S. Census Bureau, 2026a).
  5. Who bears each tax. Comptroller, Tax Exemptions & Tax Incidence (Publication 96-463), the eight “Initial Distribution and Final Incidence” tables: https://comptroller.texas.gov/transparency/reports/tax-exemptions-and-incidence/ (TCPA, 2025b).
  6. Households and income. Census American Community Survey 2024 tables B11001, B19081 and B25003, for example https://data.census.gov/table/ACSDT1Y2024.B19081?g=040XX00US48 (U.S. Census Bureau, 2025).

The four steps. (1) Add up every tax line. (2) Multiply each line by the Comptroller’s shares for the five income groups, homeowners and renters, and the amount exported. (3) Divide each income group’s total by its number of households (one-fifth of Texas households). (4) Divide by the group’s mean income. Readers who follow these steps with the same files will arrive at the same results.

⇓ Download the companion workbook (Excel)

Inspect the Data

Explore the underlying data this article is built on — one tab per dataset. Each tab includes the source data table and an expander article explaining how it was produced.

Texas Taxes per Household — Full Summary
Every summary measure behind Sections 3 and 4.
Table
Quintile Summary, 2025
Per-household measures by Census income quintile
Measure Q1 Q2 Q3 Q4 Q5 All
Households in quintile 2,289,954 2,289,954 2,289,954 2,289,954 2,289,954 11,449,769
Mean household income (2025 dollars) $17,223 $48,725 $81,206 $128,146 $290,434 $113,147
Total Texas taxes per household $5,462 $7,650 $10,337 $13,616 $25,250 $12,463
Direct (visible) per household $2,842 $4,148 $5,697 $7,947 $15,094 $7,146
Indirect (passed-through) per household $2,620 $3,502 $4,640 $5,669 $10,156 $5,317
Taxes as share of household income 31.7% 15.7% 12.7% 10.6% 8.7% 11.0%
Indirect share of burden 48.0% 45.8% 44.9% 41.6% 40.2% 42.7%
Monthly Texas taxes per household $455 $638 $861 $1,135 $2,104 $1,039
Weeks of income to pay Texas taxes 16.5 8.2 6.6 5.5 4.5 5.7
BLS spending per CU (2025 dollars) $37,045 $51,419 $59,627 $82,879 $140,351 $75,328
Taxes as share of spending (cross-check) 14.7% 14.9% 17.3% 16.4% 18.0% 16.5%
Comptroller-published burden, 8 taxes (FY2027) 16.0% 9.2% 7.7% 6.1% 4.0% —

Taxes borne by each quintile are the sum, across every current Texas tax, of the tax amount times the quintile’s share in the Comptroller’s final-incidence table. Direct taxes are the tax amount times the Comptroller’s share paid by individual consumers (58.6% for sales tax, 57.9% for motor vehicle sales tax, 75.8% for gasoline tax, 41.5% for property tax, 100% for the mixed beverage sales tax and 0% for business-paid taxes), divided among quintiles by Texas spending on the taxed item. Indirect taxes are the difference. Household counts are ACS 2024 households divided by five; incomes are ACS 2024 quintile means raised 1.3% to 2025 dollars.

Cross-check: the modeled directly paid property tax ($37.1 billion on the TY2025 levy) compares with $34.9 billion in real estate taxes that Texas homeowners reported to the Census Bureau for 2024 (ACS table B25090).

Every Current Texas Tax and Where It Lands
One row per tax; amounts in millions of dollars.
Table
Current Texas Tax Inventory and Allocation
Latest full-year amount, incidence distribution used, direct share, amount borne by Texas households and amount exported
ID Tax Level Amount Distribution Direct share Borne by TX households Exported
S-3290 Oil Production Tax State $5,384M OIL 0.0% $1,941M $3,442M
S-3291 Natural Gas Production Tax State $2,479M GAS 0.0% $857M $1,622M
S-3234 Gas Utility Pipeline Tax State $51M SALES 0.0% $41M $10M
S-3136 Cement Tax State $11M SALES 0.0% $9M $2M
S-3230 Public Utility Gross Receipts Assessments State $78M SALES 0.0% $62M $16M
S-3233 Gas, Electric and Water Utility Tax State $570M SALES 0.0% $454M $115M
S-3146 Combative Sports Admissions Tax State $1M SALES 0.0% $1M $0M
S-3296 Oil Well Service Tax State $138M OIL 0.0% $50M $89M
S-3004 Motor Vehicle Sales and Use Tax State $6,446M MVST 57.9% $5,988M $457M
S-3005 Motor Vehicle Rental Tax State $455M SALES 58.6% $363M $92M
S-3016 Motor Vehicle Sales and Use Tax – Seller Financed Motor Vehicles State $170M MVST 57.9% $158M $12M
S-3104 Manufactured Housing Sales and Use Tax State $45M MVST 57.9% $42M $3M
S-3275 Cigarette Tax State $850M TOB 0.0% $850M $0M
S-3278 Cigar and Tobacco Products Tax State $261M TOB 0.0% $261M $0M
S-3250 Mixed Beverage Gross Receipts Tax State $696M ALC 0.0% $696M $0M
S-3251 Mixed Beverage Sales Tax State $853M ALC 100.0% $853M $0M
S-3253 Liquor Tax State $123M ALC 0.0% $123M $0M
S-3258 Malt Beverage Tax State $119M ALC 0.0% $119M $0M
S-3259 Wine Tax State $18M ALC 0.0% $18M $0M
S-3008 Diesel Fuel Tax State $1,031M SALES 0.0% $822M $209M
S-3011 Liquefied and Compressed Natural Gas Tax State $7M SALES 0.0% $6M $1M
S-3007 Gasoline Tax State $2,880M GASOLINE 75.8% $2,456M $423M
S-3130 Franchise/Business Margins Tax State $7,081M FRAN 0.0% $4,466M $2,615M
S-3131 Franchise Tax State $-0M FRAN 0.0% $-0M $-0M
S-3201 Insurance Premium Taxes State $4,367M INS 0.0% $3,907M $459M
S-3203 Insurance Maintenance Taxes State $100M INS 0.0% $90M $11M
S-3214 Insurance Maintenance Tax/Fee Collections – Comptroller State $-17M INS 0.0% $-16M $-2M
S-3219 Insurance Maintenance Tax – Workers’ Compensation Division and Office of Injured Employee Counsel State $58M INS 0.0% $52M $6M
S-3220 Insurance Maintenance Tax -Workers’ Compensation Research and Oversight Division State $1M INS 0.0% $1M $0M
S-3584 Controlled Substance Tax Certificates Billing State $0M SALES 0.0% $0M $0M
S-3150 Coin-Operated Amusement Machine Tax State $11M SALES 0.0% $9M $2M
S-3728 Unemployment Assessments State $2,026M FRAN 0.0% $1,278M $748M
S-3771 Tax Refunds to Employers of TANF Recipients State $-0M FRAN 0.0% $-0M $-0M
S-3010 Motor Fuel Lube Sales Tax State $40M SALES 58.6% $32M $8M
S-3100 Interest on Retail Credit Sale State $0M SALES 58.6% $0M $0M
S-3101 Prepay Limited Sales and Use Tax State $14,770M SALES 58.6% $11,782M $2,989M
S-3102 Limited Sales and Use Tax State $34,345M SALES 58.6% $27,395M $6,950M
S-3103 Limited Mixed Sales and Use Tax-State State $15M SALES 58.6% $12M $3M
S-3105 Discount for Sales Tax – State Agencies and Higher Education State $0M SALES 58.6% $0M $0M
S-3111 Boat and Boat Motor Sales and Use Tax State $91M MVST 57.9% $84M $6M
S-3127 Fireworks Tax State $0M SALES 0.0% $0M $0M
LPT-01 Property tax (M&O + I&S; general, road & bridge, FMFC) County $16,791M SCHOOLPT 41.5% $11,933M $4,858M
LPT-02 Property tax (M&O + I&S) City $16,734M SCHOOLPT 41.5% $11,892M $4,842M
LPT-03 Property tax (M&O + I&S) School district $41,655M SCHOOLPT 41.5% $29,602M $12,052M
LPT-SD01 Property tax — Hospital / health / medical districts Special district $4,895M SCHOOLPT 41.5% $3,479M $1,416M
LPT-SD02 Property tax — Junior / community college & higher-ed districts Special district $3,559M SCHOOLPT 41.5% $2,529M $1,030M
LPT-SD03 Property tax — Municipal utility districts (MUD) Special district $2,325M SCHOOLPT 41.5% $1,652M $673M
LPT-SD04 Property tax — Emergency services / fire districts (ESD, RFPD) Special district $1,221M SCHOOLPT 41.5% $868M $353M
LPT-SD05 Property tax — Water control & improvement / fresh water / utility / reclamation districts Special district $752M SCHOOLPT 41.5% $535M $218M
LPT-SD06 Property tax — Drainage / levee / flood control / watershed districts Special district $659M SCHOOLPT 41.5% $468M $191M
LPT-SD07 Property tax — Other special districts Special district $436M SCHOOLPT 41.5% $310M $126M
LPT-SD08 Property tax — Road / management / development / improvement districts (MMD, PID, SID, TIRZ-type) Special district $145M SCHOOLPT 41.5% $103M $42M
LPT-SD09 Property tax — Navigation / port districts Special district $124M SCHOOLPT 41.5% $88M $36M
LPT-SD10 Property tax — River / soil & water / other authorities Special district $84M SCHOOLPT 41.5% $60M $24M
LPT-SD11 Property tax — Groundwater / underground water conservation districts Special district $34M SCHOOLPT 41.5% $24M $10M
LPT-SD12 Property tax — School equalization districts Special district $18M SCHOOLPT 41.5% $13M $5M
LPT-SD13 Property tax — Public utility districts (PUD) Special district $14M SCHOOLPT 41.5% $10M $4M
LST-01 Local sales and use tax (general, property-tax relief, economic development 4A/4B, street maintenance, venue) City $9,067M SALES 58.6% $7,232M $1,835M
LST-02 Local sales and use tax (general, health services, venue) County $888M SALES 58.6% $708M $180M
LST-03 Metropolitan transit authority / city transit department sales and use tax Transit authority $3,010M SALES 58.6% $2,401M $609M
LST-04 SPD sales and use tax (crime control, hospital, emergency services, library, development districts, etc.) Special purpose district $1,451M SALES 58.6% $1,157M $294M
LOT-02 Local public utility taxes (gross-receipts / right-of-way charges on utilities, as classified by Census) Local (all types) $1,421M SALES 0.0% $1,133M $288M
LOT-03 Local motor vehicle license taxes (county vehicle registration fees) Local (all types) $440M MVST 57.9% $408M $31M
LOT-04 Local occupation and business license taxes Local (all types) $174M FRAN 0.0% $110M $64M
LOT-05 Other local license taxes Local (all types) $826M SALES 0.0% $659M $167M
LOT-06 Local alcoholic beverage license taxes Local (all types) $14M ALC 0.0% $14M $0M
LOT-07 Local amusement taxes Local (all types) $11M SALES 0.0% $9M $2M
LOT-08 Local amusement license taxes Local (all types) $3M SALES 0.0% $2M $1M
LOT-09 Local public utility license taxes Local (all types) $0M SALES 0.0% $0M $0M
LOT-10 Local taxes not elsewhere classified Local (all types) $46M SALES 0.0% $37M $9M
Total $192,348M $142,699M $49,649M

The inventory covers 70 of the 73 current Texas taxes: 41 of the 43 state tax revenue objects in the Comptroller’s fiscal 2025 cash report at all-funds amounts, including trust-fund deposits; property tax levies for counties, cities, school districts and 13 types of special districts for tax year 2025; local sales tax allocations to cities, counties, transit authorities and special purpose districts for calendar 2025; and 9 of the 10 Census categories of other local taxes for fiscal 2024. The three excluded lines are the state hotel occupancy tax, its discounts and the Census local selective sales tax category, which is mostly local hotel occupancy taxes. Negative amounts are refunds and prior-law adjustments reported by the Comptroller.

Who Finally Bears Each Tax
Share of each tax by household income quintile, export and tenure.
Chart
Share of Each Tax Exported to Non-Residents
Comptroller final incidence, fiscal 2027 distribution
Table
Final-Incidence Shares Used in This Analysis
Share of each tax borne by each group
Distribution Q1 Q2 Q3 Q4 Q5 Exported Homeowners Renters
SALES 7.2% 10.5% 14.2% 17.4% 30.4% 20.2% 51.0% 28.8%
MVST 8.3% 11.0% 14.5% 25.4% 33.6% 7.1% 56.7% 36.2%
FRAN 4.0% 7.0% 11.0% 14.6% 26.5% 36.9% 45.7% 17.4%
OIL 2.0% 3.0% 5.0% 9.1% 16.9% 63.9% 24.0% 12.0%
GAS 2.9% 5.1% 5.8% 7.5% 13.2% 65.4% 16.5% 18.1%
GASOLINE 10.1% 13.7% 19.1% 20.1% 22.1% 14.7% 53.9% 31.4%
INS 11.3% 12.1% 18.6% 22.1% 25.5% 10.5% 55.3% 34.1%
SCHOOLPT 5.9% 8.0% 10.7% 14.9% 31.5% 28.9% 42.7% 28.4%
TOB 23.6% 26.0% 21.9% 12.7% 15.9% 0.0% 59.2% 40.8%
ALC 5.6% 12.5% 16.9% 21.4% 43.6% 0.0% 71.4% 28.6%

Shares are the Comptroller’s dollar amounts for each group divided by the total for that tax. The Comptroller’s quintiles are equal fifths of Texas households ranked by total income; for fiscal 2027 the boundaries are $41,105, $72,978, $117,008 and $195,292.

What Texas Households Spend
Selected BLS lines, published 2022–23 average and 2025 dollars.
Table
Household Spending by Quintile
BLS Consumer Expenditure Surveys, Texas; per consumer unit
Category All (2022–23) Q1 (2025$) Q2 (2025$) Q3 (2025$) Q4 (2025$) Q5 (2025$) All (2025$)
Total spending $69,802 $37,045 $51,419 $59,627 $82,879 $140,351 $75,328
Groceries $4,721 $3,051 $3,455 $4,442 $5,699 $7,751 $4,914
Restaurants and takeout $3,852 $2,014 $2,410 $3,533 $4,386 $9,358 $4,380
Housing (all) $23,133 $15,774 $19,213 $20,550 $26,813 $41,097 $24,965
  Rent $5,255 $6,133 $6,790 $5,560 $6,215 $4,363 $5,791
  Owned home costs $7,458 $3,586 $4,449 $6,008 $8,597 $18,293 $8,357
  Utilities and phone $4,847 $3,753 $4,573 $5,395 $6,052 $7,423 $5,483
Transportation (all) $13,384 $7,955 $7,210 $12,795 $16,662 $26,450 $14,444
  Vehicle purchases $5,736 $3,511 $1,473 $4,710 $6,670 $12,984 $5,990
  Gasoline $3,070 $1,573 $1,999 $2,676 $3,005 $3,539 $2,583
Health care $5,265 $2,922 $4,335 $4,408 $6,254 $8,947 $5,443
Entertainment $3,184 $1,195 $1,977 $1,909 $3,311 $8,207 $3,377
Apparel $1,667 $832 $877 $1,515 $1,632 $3,734 $1,734
Education $873 $235 $194 $644 $900 $2,257 $869
Personal insurance and pensions $8,021 $676 $2,520 $5,603 $11,137 $22,060 $8,656
Income before taxes (survey) $91,099 $14,344 $37,834 $65,534 $111,789 $248,382 $98,312

Each line is multiplied by the change in its Dallas–Fort Worth CPI-U category from the 2022–2023 average to 2025 (for example, all items 1.079, food at home 1.041, rent 1.102, gasoline 0.841). Dallas–Fort Worth did not publish a 2025 fuels-and-utilities index, so the U.S. city average change was used for that year. This adjusts for price changes only, not for changes in what households buy.

Spending on Basic Household Needs
BLS spending mapped to the 13 Texas Living Exemption Set categories, 2025 dollars.
Table
Household Spending by TLES Category
Per consumer unit, 2025 dollars
Category All Q1 Q2 Q3 Q4 Q5
TLES-1 Groceries $4,914 $3,051 $3,455 $4,442 $5,699 $7,751
TLES-2 Residential rent $5,791 $6,133 $6,790 $5,560 $6,215 $4,363
TLES-3 Home utilities $3,750 $2,700 $3,125 $3,740 $3,913 $5,129
TLES-4 Prescription drugs (BLS line incl. OTC) $504 $416 $427 $476 $470 $723
TLES-5 Medical care $1,208 $621 $876 $833 $1,445 $2,168
TLES-6 Education services $869 $235 $194 $644 $900 $2,257
TLES-7 Motor fuel (personal) $2,588 $1,576 $2,005 $2,681 $3,017 $3,543
TLES-8 Childcare (BLS personal services) $342 $102 $136 $112 $571 $748
TLES-9 Primary-residence home purchase n/a n/a n/a n/a n/a n/a
TLES-10 Residential property insurance (inside this combined line) n/a n/a n/a n/a n/a n/a
TLES-11 Personal auto insurance $2,059 $1,024 $1,535 $1,993 $2,476 $3,138
TLES-12 Individual life insurance $394 $141 $220 $361 $449 $764
TLES-13 Personal vehicle (all vehicles, net outlay) $5,990 $3,511 $1,473 $4,710 $6,670 $12,984
Total, measured TLES lines $28,410 $19,510 $20,235 $25,552 $31,826 $43,567
Average annual expenditures (all) $75,328 $37,045 $51,419 $59,627 $82,879 $140,351
TLES lines as share of spending 38% 53% 39% 43% 38% 31%

Groceries = food at home; rent = rented dwellings; utilities = natural gas, electricity, other fuels and water; prescription drugs = the BLS drugs line, which also includes over-the-counter medicine; medical care = medical services and supplies; education = education; motor fuel = gasoline and other fuels; childcare = the BLS personal services line (mostly child and adult day care); auto insurance = vehicle insurance; life insurance = life and other personal insurance; vehicle = all vehicle purchases, net of trade-ins.

Living-Wage Budgets, Texas and Dallas County
All 12 MIT household configurations, 2025 dollars.
Table
MIT Living Wage and Typical Expenses, Texas
A = adults, W = working adults, C = children
Item 1A0C 1A1C 1A2C 1A3C 2A1W0C 2A1W1C 2A1W2C 2A1W3C 2A2W0C 2A2W1C 2A2W2C 2A2W3C
Living Wage $21.77 $35.77 $44.95 $56.14 $29.34 $35.06 $37.39 $43.35 $14.67 $20.44 $24.45 $29.51
Poverty Wage $7.67 $10.40 $13.13 $15.87 $10.40 $13.13 $15.87 $18.60 $5.20 $6.57 $7.93 $9.30
Minimum Wage $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25
Food $3,888 $5,703 $8,545 $11,373 $7,128 $8,846 $11,378 $13,882 $7,128 $8,846 $11,378 $13,882
Child Care $0 $9,724 $19,178 $26,128 $0 $0 $0 $0 $0 $9,724 $19,178 $26,128
Medical $3,100 $9,066 $9,214 $9,375 $7,427 $9,993 $10,293 $10,629 $7,427 $9,993 $10,293 $10,629
Housing $14,679 $18,418 $18,418 $24,030 $15,452 $18,418 $18,418 $24,030 $15,452 $18,418 $18,418 $24,030
Transportation $9,013 $10,431 $13,139 $15,118 $10,431 $13,139 $15,118 $16,926 $10,431 $13,139 $15,118 $16,926
Civic $2,583 $4,360 $5,749 $6,547 $4,360 $5,749 $6,547 $7,330 $4,360 $5,749 $6,547 $7,330
Internet & Mobile $1,512 $1,512 $1,512 $1,512 $2,086 $2,086 $2,086 $2,086 $2,086 $2,086 $2,086 $2,086
Other $4,067 $7,395 $8,083 $8,801 $7,395 $8,279 $8,801 $9,854 $7,395 $8,279 $8,801 $9,854
Required annual income after taxes $38,842 $66,608 $83,839 $102,885 $54,277 $66,510 $72,642 $84,736 $54,277 $76,233 $91,820 $110,865
Annual taxes $6,449 $7,783 $9,648 $13,885 $6,760 $6,406 $5,129 $5,435 $6,760 $8,794 $9,877 $11,886
Required annual income before taxes $45,290 $74,391 $93,487 $116,770 $61,036 $72,916 $77,772 $90,171 $61,036 $85,027 $101,697 $122,751
Est. Texas taxes borne (author) $7,902 $9,933 $11,386 $13,003 $8,896 $9,835 $10,144 $11,116 $8,896 $10,678 $12,011 $13,340
Table
MIT Living Wage and Typical Expenses, Dallas County
A = adults, W = working adults, C = children
Item 1A0C 1A1C 1A2C 1A3C 2A1W0C 2A1W1C 2A1W2C 2A1W3C 2A2W0C 2A2W1C 2A2W2C 2A2W3C
Living Wage $23.31 $37.90 $47.71 $59.68 $30.79 $36.54 $38.88 $44.80 $15.39 $21.49 $25.78 $31.03
Poverty Wage $7.67 $10.40 $13.13 $15.87 $10.40 $13.13 $15.87 $18.60 $5.20 $6.57 $7.93 $9.30
Minimum Wage $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25
Food $4,019 $5,896 $8,834 $11,758 $7,369 $9,145 $11,763 $14,352 $7,369 $9,145 $11,763 $14,352
Child Care $0 $10,755 $21,211 $28,854 $0 $0 $0 $0 $0 $10,755 $21,211 $28,854
Medical $3,032 $8,759 $8,906 $9,068 $7,214 $9,686 $9,986 $10,322 $7,214 $9,686 $9,986 $10,322
Housing $17,805 $21,732 $21,732 $27,360 $18,547 $21,732 $21,732 $27,360 $18,547 $21,732 $21,732 $27,360
Transportation $8,440 $9,767 $12,303 $14,156 $9,767 $12,303 $14,156 $15,849 $9,767 $12,303 $14,156 $15,849
Civic $2,583 $4,360 $5,749 $6,547 $4,360 $5,749 $6,547 $7,330 $4,360 $5,749 $6,547 $7,330
Internet & Mobile $1,454 $1,454 $1,454 $1,454 $2,027 $2,027 $2,027 $2,027 $2,027 $2,027 $2,027 $2,027
Other $4,067 $7,395 $8,083 $8,801 $7,395 $8,279 $8,801 $9,854 $7,395 $8,279 $8,801 $9,854
Required annual income after taxes $41,399 $70,117 $88,273 $107,998 $56,679 $68,922 $75,014 $87,093 $56,679 $79,676 $96,225 $115,948
Annual taxes $7,090 $8,715 $10,966 $16,138 $7,356 $7,084 $5,852 $6,083 $7,356 $9,709 $11,026 $13,140
Required annual income before taxes $48,489 $78,832 $99,239 $124,137 $64,034 $76,005 $80,866 $93,176 $64,034 $89,386 $107,251 $129,088
Est. Texas taxes borne (author) $7,672 $10,206 $11,830 $13,413 $9,157 $10,037 $10,319 $11,361 $9,157 $11,050 $12,400 $13,702

Estimated Texas taxes borne interpolate the Section 3 share-of-income curve (quintile mean incomes and burdens) at each configuration’s required pre-tax income. Values below the bottom-quintile mean or above the top-quintile mean use the end values. MIT does not publish state House district figures; the Dallas County budgets apply to House District 109. MIT also publishes figures for Ellis County and the Dallas–Fort Worth metro.

Share of Rent That Pays Property Tax
NAA Dollar of Rent data for Texas and its metros, 2023–2025, and by income fifth.
Table
Property Taxes per Dollar of Apartment Rent
Property taxes per unit ÷ total revenue per unit
Geography Segment Year Property tax per unit Revenue per unit Share of rent NAA published
Texas All apartments 2023 $2,242 $14,415 15.6% 16 cents
Texas All apartments 2024 $2,127 $14,557 14.6% 15 cents
Texas All apartments 2025 $2,111 $14,621 14.4% 14 cents
Texas Market-rate 2023 $2,837 $16,313 17.4% 17 cents
Texas Market-rate 2024 $2,631 $16,339 16.1% 16 cents
Texas Market-rate 2025 $2,617 $16,493 15.9% 16 cents
Texas Affordable 2023 $1,791 $12,975 13.8% 14 cents
Texas Affordable 2024 $1,760 $13,259 13.3% 13 cents
Texas Affordable 2025 $1,746 $13,272 13.2% 13 cents
Texas Manufactured 2023 $669 $8,023 8.3% 8 cents
Texas Manufactured 2024 $686 $8,726 7.9% 8 cents
Texas Manufactured 2025 $765 $9,036 8.5% 8 cents
Dallas metro All apartments 2023 $2,574 $15,803 16.3% 16 cents
Dallas metro All apartments 2024 $2,471 $15,859 15.6% 16 cents
Dallas metro All apartments 2025 $2,515 $15,867 15.9% 16 cents
Dallas metro Market-rate 2023 $3,190 $17,865 17.9% 18 cents
Dallas metro Market-rate 2024 $3,048 $17,782 17.1% 17 cents
Dallas metro Market-rate 2025 $3,063 $17,697 17.3% 17 cents
Dallas metro Affordable 2023 $2,037 $14,012 14.5% 15 cents
Dallas metro Affordable 2024 $2,000 $14,284 14.0% 14 cents
Dallas metro Affordable 2025 $2,067 $14,370 14.4% 14 cents
Houston metro All apartments 2023 $2,177 $14,317 15.2% 15 cents
Houston metro All apartments 2024 $2,131 $14,577 14.6% 15 cents
Houston metro All apartments 2025 $2,085 $14,919 14.0% 14 cents
Houston metro Market-rate 2023 $2,731 $16,005 17.1% 17 cents
Houston metro Market-rate 2024 $2,544 $16,189 15.7% 16 cents
Houston metro Market-rate 2025 $2,523 $16,708 15.1% 15 cents
Houston metro Affordable 2023 $1,761 $13,048 13.5% 13 cents
Houston metro Affordable 2024 $1,798 $13,278 13.5% 14 cents
Houston metro Affordable 2025 $1,722 $13,435 12.8% 13 cents
Austin metro All apartments 2023 $2,861 $16,282 17.6% 18 cents
Austin metro All apartments 2024 $2,631 $16,108 16.3% 16 cents
Austin metro All apartments 2025 $2,665 $15,639 17.0% 17 cents
Austin metro Market-rate 2023 $3,441 $17,618 19.5% 20 cents
Austin metro Market-rate 2024 $3,223 $17,238 18.7% 19 cents
Austin metro Market-rate 2025 $3,292 $17,272 19.1% 19 cents
Austin metro Affordable 2023 $2,448 $15,330 16.0% 16 cents
Austin metro Affordable 2024 $2,285 $15,446 14.8% 15 cents
Austin metro Affordable 2025 $2,336 $14,779 15.8% 16 cents
San Antonio metro All apartments 2023 $2,397 $13,739 17.4% 17 cents
San Antonio metro All apartments 2024 $2,228 $13,988 15.9% 16 cents
San Antonio metro All apartments 2025 $2,074 $13,645 15.2% 15 cents
San Antonio metro Market-rate 2023 $3,002 $15,395 19.5% 20 cents
San Antonio metro Market-rate 2024 $2,790 $15,772 17.7% 18 cents
San Antonio metro Market-rate 2025 $2,639 $15,201 17.4% 17 cents
San Antonio metro Affordable 2023 $1,798 $12,088 14.9% 15 cents
San Antonio metro Affordable 2024 $1,760 $12,502 14.1% 14 cents
San Antonio metro Affordable 2025 $1,616 $12,386 13.0% 13 cents
Nationwide All apartments 2023 $1,840 $17,595 10.5% 10 cents
Nationwide All apartments 2024 $1,840 $18,081 10.2% 10 cents
Nationwide All apartments 2025 $1,909 $18,556 10.3% 10 cents
Nationwide Market-rate 2023 $2,274 $21,011 10.8% 11 cents
Nationwide Market-rate 2024 $2,288 $21,560 10.6% 11 cents
Nationwide Market-rate 2025 $2,371 $21,987 10.8% 11 cents
Nationwide Affordable 2023 $1,436 $14,426 10.0% 10 cents
Nationwide Affordable 2024 $1,440 $14,972 9.6% 10 cents
Nationwide Affordable 2025 $1,480 $15,381 9.6% 10 cents
Table
Property Tax Inside Rent by Income Fifth
BLS rent paid, 2025 dollars, at the all-renter effective share (21.3%)
Fifth Rent paid (avg. household) Renter share Rent per renter household Property tax in rent, per renter Property tax passed through, all channels (avg. household)
Q1 $6,133 55.1% $11,130 $2,367 $1,291
Q2 $6,790 50.5% $13,445 $2,859 $1,329
Q3 $5,560 39.5% $14,075 $2,993 $1,628
Q4 $6,215 29.9% $20,784 $4,420 $2,145
Q5 $4,363 14.0% $31,166 $6,628 $5,157
Table
Property Tax Rates on a Rented Home, Tax Year 2025
Adopted rates per $100 of value; rentals receive no homestead exemption
Area or taxing unit Type Rate per $100
Texas average School districts (all ISDs) 1.0136
Texas average Counties (all counties) 0.3487
Texas average Cities (property inside a city) 0.5316
Texas average Special districts (spread over the county base) 0.2963
Dallas County County 0.2155
Dallas County Hospital District (Parkland) Special district 0.2120
Dallas College District Special district 0.1066
City of Dallas City 0.6988
Dallas ISD School district 0.9938
City of Cedar Hill City 0.6364
Cedar Hill ISD School district 1.1279
City of DeSoto City 0.6849
DeSoto ISD School district 1.2252
City of Lancaster City 0.5995
Lancaster ISD School district 1.2244
Texas (statewide average, inside a city) Combined rate 2.190%
Dallas County (City of Dallas / Dallas ISD) Combined rate 2.227%
HD109: Cedar Hill / Cedar Hill ISD Combined rate 2.298%
HD109: DeSoto / DeSoto ISD Combined rate 2.444%
HD109: Lancaster / Lancaster ISD Combined rate 2.358%
HD109 (average of its three core city/ISD pairs) Combined rate 2.367%

The share of rent that pays the owner’s property tax is calculated from the NAA data file as average property taxes per unit divided by total annual revenue per unit, which reproduces NAA’s published cents-per-dollar figures. Rent per renter household is BLS rent paid per consumer unit divided by the share of consumer units that rent; the all-renter effective share blends houses, townhomes, small multifamily, apartments and mobile homes by their numbers of renters. For the two lowest income fifths, property tax inside rent on this basis is slightly larger than the property tax the Comptroller’s shares pass through to them, a sign that the official distribution may understate the property tax borne by low-income renters. The Comptroller’s renter share of property tax is larger than the in-rent amount because it also counts property taxes on stores, offices and other business property that reach renters through prices.

Texas Among the States
Every state, FY2024 taxes and 2024 income and prices.
Table
State and Local Taxes, Income and Prices by State
Ranks among 50 states (1 = highest)
State Taxes per person Rank Share of personal income Rank Property tax share Rank Homeowner effective rate Rank Price parity (U.S. = 100) Median household income
Alabama $5,045 47 9.1% 34 16.8% 48 0.38% 49 88.8 $66,659
Alaska $5,798 32 7.8% 46 42.4% 2 1.06% 16 102.4 $95,665
Arizona $5,305 44 8.3% 42 23.9% 34 0.43% 47 100.7 $81,486
Arkansas $5,302 45 9.2% 33 18.1% 46 0.52% 39 86.9 $62,106
California $10,177 3 12.1% 7 24.5% 33 0.71% 32 110.7 $100,149
Colorado $7,086 18 8.8% 39 33.6% 15 0.49% 41 103.1 $97,113
Connecticut $9,797 4 10.4% 16 34.9% 10 1.66% 3 103.6 $96,049
Delaware $7,557 15 11.8% 8 14.4% 49 0.47% 43 99.8 $87,534
District of Columbia $15,111 — 13.6% — 29.5% — 0.63% — 109.9 $109,707
Florida $5,353 43 7.4% 50 37.4% 8 0.75% 26 103.4 $77,735
Georgia $5,482 38 9.0% 35 31.6% 20 0.74% 28 96.3 $79,991
Hawaii $10,210 2 14.7% 2 18.9% 45 0.27% 50 110.0 $100,745
Idaho $5,481 39 9.2% 32 19.3% 42 0.43% 48 95.5 $81,166
Illinois $9,021 8 12.2% 6 33.4% 16 1.92% 1 100.0 $83,211
Indiana $5,574 35 9.0% 36 26.7% 29 0.74% 29 93.3 $71,959
Iowa $6,404 25 10.1% 19 32.9% 18 1.29% 9 87.8 $75,501
Kansas $6,704 23 10.4% 15 30.1% 23 1.25% 10 90.1 $75,514
Kentucky $5,485 37 9.7% 25 20.4% 40 0.71% 30 90.2 $64,526
Louisiana $6,244 27 10.4% 14 19.1% 44 0.53% 38 88.2 $60,986
Maine $7,741 13 11.6% 9 39.6% 6 0.91% 22 97.0 $76,442
Maryland $8,330 11 10.8% 12 23.8% 36 0.95% 21 105.0 $102,905
Massachusetts $9,421 6 10.2% 18 34.1% 12 1.00% 19 105.8 $104,828
Michigan $5,591 34 8.9% 37 33.9% 14 1.18% 13 96.2 $72,389
Minnesota $8,319 12 11.3% 10 24.5% 32 1.02% 17 98.6 $87,117
Mississippi $4,979 49 9.8% 23 26.3% 30 0.65% 34 87.0 $59,127
Missouri $5,436 42 8.4% 41 28.8% 25 0.79% 23 90.8 $71,589
Montana $5,965 31 8.9% 38 36.4% 9 0.69% 33 94.6 $75,340
Nebraska $7,076 19 9.9% 21 33.3% 17 1.42% 7 90.1 $76,376
Nevada $6,634 24 9.7% 24 23.8% 35 0.47% 44 100.0 $81,134
New Hampshire $6,322 26 7.7% 47 64.3% 1 1.46% 4 104.2 $99,782
New Jersey $9,050 7 10.9% 11 40.5% 4 1.89% 2 108.8 $104,294
New Mexico $8,966 9 15.8% 1 14.0% 50 0.63% 35 92.2 $67,816
New York $12,274 1 14.6% 3 28.8% 26 1.45% 5 107.9 $85,820
North Carolina $5,292 46 8.4% 40 22.7% 38 0.61% 36 94.3 $73,958
North Dakota $9,629 5 13.3% 4 17.5% 47 0.96% 20 89.0 $77,871
Ohio $6,005 30 9.5% 27 28.1% 27 1.22% 12 92.8 $72,212
Oklahoma $4,985 48 8.1% 44 20.0% 41 0.75% 27 87.8 $66,148
Oregon $6,788 22 9.9% 20 31.0% 21 0.78% 25 103.4 $85,220
Pennsylvania $6,905 20 9.9% 22 26.2% 31 1.16% 14 97.6 $77,545
Rhode Island $7,367 16 10.5% 13 34.3% 11 1.07% 15 102.3 $83,504
South Carolina $5,443 41 9.3% 30 29.0% 24 0.45% 46 93.7 $72,350
South Dakota $5,474 40 7.5% 49 34.0% 13 1.02% 18 88.6 $76,881
Tennessee $4,804 50 7.5% 48 19.2% 43 0.45% 45 91.9 $71,997
Texas $5,670 33 8.3% 43 40.9% 3 1.31% 8 97.1 $79,721
Utah $6,112 29 9.4% 28 23.4% 37 0.49% 42 98.9 $96,658
Vermont $8,698 10 12.4% 5 39.8% 5 1.42% 6 98.0 $82,730
Virginia $7,195 17 9.5% 26 31.9% 19 0.71% 31 101.1 $92,090
Washington $7,725 14 9.3% 29 27.6% 28 0.79% 24 107.0 $99,389
West Virginia $5,540 36 10.3% 17 22.7% 39 0.52% 40 89.5 $60,798
Wisconsin $6,142 28 9.2% 31 31.0% 22 1.25% 11 94.1 $77,488
Wyoming $6,853 21 8.0% 45 38.5% 7 0.57% 37 92.7 $75,532

Taxes are fiscal 2024 state and local tax revenue (Census tax items T01–T99, state and local combined). Share of personal income divides by the average of 2023 and 2024 personal income. Homeowner effective rate is the ACS median real estate tax divided by the median home value. Ranks are among the 50 states.

Business Taxes by State
EY/COST fiscal 2024 estimates for every state.
Table
State and Local Business Taxes by State, FY2024
EY/COST estimates; ranks among 50 states (1 = highest)
State Business taxes All state and local taxes Business share Rank Business tax rate (TEBTR) Rank Per employee Rank
Alabama $12.7B $25.9B 49.2% 22 4.7% 21 $7.2K 36
Alaska $3.0B $4.5B 67.2% 3 5.3% 12 $11.9K 7
Arizona $17.2B $40.9B 42.1% 36 3.5% 45 $6.1K 43
Arkansas $7.0B $16.4B 43.0% 30 4.3% 32 $6.1K 43
California $174.5B $407.5B 42.8% 33 5.0% 14 $11.4K 8
Colorado $21.3B $43.7B 48.8% 24 4.4% 27 $8.6K 18
Connecticut $11.5B $36.6B 31.5% 50 3.6% 42 $7.8K 25
Delaware $4.6B $8.1B 57.5% 8 4.7% 21 $11.1K 9
Florida $66.6B $123.2B 54.1% 11 4.4% 27 $7.6K 30
Georgia $27.3B $61.0B 44.8% 29 3.5% 45 $6.4K 40
Hawaii $6.3B $15.1B 41.6% 38 6.8% 4 $12.3K 6
Idaho $4.3B $10.1B 42.0% 37 3.8% 40 $5.8K 46
Illinois $56.3B $113.5B 49.6% 19 5.5% 10 $10.6K 10
Indiana $15.5B $40.9B 37.8% 46 3.3% 48 $5.5K 48
Iowa $9.8B $21.3B 46.1% 27 4.2% 35 $7.4K 33
Kansas $9.6B $19.8B 48.6% 25 4.8% 20 $8.0K 23
Kentucky $12.6B $25.4B 49.4% 21 4.9% 18 $7.3K 35
Louisiana $14.1B $27.9B 50.6% 17 4.9% 18 $8.5K 19
Maine $5.4B $10.6B 51.2% 15 6.3% 6 $9.7K 12
Maryland $18.9B $53.8B 35.1% 49 4.5% 25 $8.3K 20
Massachusetts $26.3B $67.7B 38.8% 45 3.8% 40 $8.1K 22
Michigan $20.5B $57.2B 35.8% 48 3.3% 48 $5.3K 50
Minnesota $18.6B $45.0B 41.3% 39 4.1% 36 $7.2K 36
Mississippi $7.8B $14.9B 52.1% 13 5.9% 7 $8.2K 21
Missouri $14.2B $34.8B 40.8% 40 3.6% 42 $5.6K 47
Montana $3.4B $7.0B 48.2% 26 5.0% 14 $7.8K 25
Nebraska $7.6B $14.3B 53.2% 12 4.6% 24 $8.7K 16
Nevada $12.8B $23.0B 55.6% 9 5.4% 11 $9.2K 13
New Hampshire $4.2B $8.5B 49.2% 22 3.9% 39 $6.8K 38
New Jersey $32.8B $91.1B 36.0% 47 4.4% 27 $8.8K 15
New Mexico $11.9B $18.8B 63.4% 4 10.6% 1 $17.1K 1
New York $115.9B $252.3B 45.9% 28 5.7% 8 $13.8K 3
North Carolina $23.4B $60.2B 38.9% 44 3.2% 50 $5.5K 48
North Dakota $5.8B $7.7B 75.3% 1 8.1% 3 $16.0K 2
Ohio $28.7B $70.6B 40.7% 42 3.5% 45 $5.9K 45
Oklahoma $10.9B $21.2B 51.5% 14 5.0% 14 $7.7K 29
Oregon $13.3B $33.0B 40.4% 43 4.7% 21 $7.9K 24
Pennsylvania $40.5B $94.1B 43.0% 30 4.5% 25 $7.4K 33
Rhode Island $3.5B $8.5B 40.8% 40 5.1% 13 $7.8K 25
South Carolina $15.0B $30.4B 49.5% 20 5.0% 14 $7.6K 30
South Dakota $2.9B $5.0B 58.3% 7 4.3% 32 $7.6K 30
Tennessee $19.8B $36.3B 54.7% 10 4.0% 38 $6.8K 38
Texas $108.1B $181.7B 59.5% 5 4.4% 27 $9.0K 14
Utah $9.5B $22.0B 43.0% 30 3.6% 42 $6.4K 40
Vermont $3.4B $5.8B 58.6% 6 8.6% 2 $13.2K 5
Virginia $27.2B $63.7B 42.7% 34 4.4% 27 $7.8K 25
Washington $31.5B $62.9B 50.0% 18 4.3% 32 $10.4K 11
West Virginia $4.9B $9.7B 51.0% 16 5.6% 9 $8.7K 16
Wisconsin $16.3B $38.7B 42.2% 35 4.1% 36 $6.2K 42
Wyoming $3.0B $4.1B 72.5% 2 6.8% 4 $13.3K 4
District of Columbia $5.9B $10.6B 56.1% — 4.8% — $11.1K —
United States $1,148.1B $2,506.8B 45.8% — 4.5% — $8.6K —

Transcribed from Tables 5, 6 and 7 of the EY/COST fiscal 2024 study. Ranks calculated by author among the 50 states.

Texas Taxes by Group
Every group, Texas, Dallas County and House District 109.
Table
Estimated Texas Taxes by Demographic Group
Median income, estimated Texas taxes, renter share and poverty rate
Area Category Group Households Share of households Median income (2025$) Est. share of income Est. Texas taxes Weeks Renter share Poverty rate
Texas All households All households 11,449,769 100.0% $80,757 12.8% $10,313 6.6 38% 13.4%
Texas Race / ethnicity of householder White, not Hispanic 5,084,982 44.4% $96,114 12.1% $11,592 6.3 29% 8.3%
Texas Race / ethnicity of householder Hispanic or Latino 3,845,697 33.6% $67,359 14.0% $9,428 7.3 41% 17.8%
Texas Race / ethnicity of householder Black or African American 1,500,025 13.1% $62,555 14.4% $9,030 7.5 59% 18.4%
Texas Race / ethnicity of householder Asian 657,365 5.7% $123,560 10.8% $13,383 5.6 34% 8.0%
Texas Age of householder Under 25 536,492 4.7% $44,406 17.9% $7,947 9.3 87% —
Texas Age of householder 25 to 44 4,308,767 37.6% $86,483 12.5% $10,804 6.5 51% —
Texas Age of householder 45 to 64 3,990,207 34.8% $98,365 12.0% $11,765 6.2 27% —
Texas Age of householder 65 and over 2,614,303 22.8% $59,503 14.7% $8,756 7.7 21% —
Texas Family type Married couple with children under 18 2,353,236 20.6% $125,794 10.7% $13,499 5.6 — —
Texas Family type Married couple, no children under 18 3,221,029 28.1% $112,327 11.3% $12,732 5.9 — —
Texas Family type Single mother with children under 18 793,333 6.9% $40,464 19.9% $8,052 10.3 — —
Texas Family type Single father with children under 18 268,294 2.3% $60,910 14.6% $8,884 7.6 — —
Dallas County All households All households 982,737 100.0% $77,542 13.1% $10,130 6.8 49% 13.9%
Dallas County Race / ethnicity of householder White, not Hispanic 334,201 34.0% $103,606 11.7% $12,148 6.1 39% 7.1%
Dallas County Race / ethnicity of householder Hispanic or Latino 306,427 31.2% $69,809 13.8% $9,614 7.2 48% 16.1%
Dallas County Race / ethnicity of householder Black or African American 246,081 25.0% $59,130 14.7% $8,721 7.7 63% 19.8%
Dallas County Race / ethnicity of householder Asian 67,702 6.9% $110,384 11.4% $12,608 5.9 48% 9.5%
Dallas County Age of householder Under 25 48,544 4.9% $49,930 15.6% $7,784 8.1 90% —
Dallas County Age of householder 25 to 44 402,212 40.9% $82,242 12.7% $10,431 6.6 65% —
Dallas County Age of householder 45 to 64 342,556 34.9% $87,431 12.5% $10,885 6.5 37% —
Dallas County Age of householder 65 and over 189,425 19.3% $58,968 14.8% $8,706 7.7 27% —
Dallas County Family type Married couple with children under 18 177,025 18.0% $108,596 11.5% $12,490 6.0 — —
Dallas County Family type Married couple, no children under 18 236,915 24.1% $115,616 11.2% $12,934 5.8 — —
Dallas County Family type Single mother with children under 18 75,776 7.7% $40,145 20.1% $8,054 10.4 — —
Dallas County Family type Single father with children under 18 19,445 2.0% $51,413 15.5% $7,946 8.0 — —
HD109 All households All households 63,170 100.0% $77,765 13.0% $10,144 6.8 29% 13.1%
HD109 Race / ethnicity of householder White, not Hispanic 9,435 14.9% $80,580 12.8% $10,303 6.6 23% 11.1%
HD109 Race / ethnicity of householder Hispanic or Latino 14,800 23.4% $79,822 12.9% $10,262 6.7 17% 15.1%
HD109 Race / ethnicity of householder Black or African American 35,664 56.5% $77,169 13.1% $10,108 6.8 36% 12.6%
HD109 Race / ethnicity of householder Asian 967 1.5% $95,793 12.1% $11,568 6.3 13% 7.8%
HD109 Age of householder Under 25 1,063 1.7% $50,961 15.5% $7,897 8.1 60% —
HD109 Age of householder 25 to 44 22,503 35.6% $77,907 13.0% $10,152 6.8 40% —
HD109 Age of householder 45 to 64 26,752 42.3% $88,236 12.4% $10,954 6.5 25% —
HD109 Age of householder 65 and over 12,852 20.3% $61,280 14.6% $8,918 7.6 18% —
HD109 Family type Married couple with children under 18 12,295 19.5% $111,410 11.4% $12,674 5.9 — —
HD109 Family type Married couple, no children under 18 16,447 26.0% $111,769 11.4% $12,696 5.9 — —
HD109 Family type Single mother with children under 18 6,757 10.7% $55,587 15.1% $8,379 7.8 — —
HD109 Family type Single father with children under 18 1,656 2.6% $37,175 21.6% $8,019 11.2 — —

Each group’s median income (2024 dollars, raised to 2025 dollars by the Dallas–Fort Worth consumer price index) is placed on the statewide share-of-income curve built from the five income quintiles in Section 3, by straight-line interpolation between quintile mean incomes. The result is the share of income Texas taxes take from a household at that income, multiplied by the income for dollars and expressed in weeks of income.

Local Estimates: Texas, Dallas County and HD109
All income fifths, five-year ACS basis.
Table
Estimated Texas Taxes Borne by Area and Income Fifth
Current state and local taxes, 2025
Area Fifth Households Mean income Share of income Texas taxes per household Direct Indirect Total borne
Texas (5-yr) Q1 2,198,563 $17,295 31.7% $5,478 $2,851 $2,627 $12.044B
Texas (5-yr) Q2 2,198,563 $47,917 16.1% $7,720 $4,182 $3,539 $16.974B
Texas (5-yr) Q3 2,198,563 $80,053 12.8% $10,275 $5,659 $4,615 $22.589B
Texas (5-yr) Q4 2,198,563 $126,314 10.7% $13,525 $7,877 $5,648 $29.736B
Texas (5-yr) Q5 2,198,563 $285,230 8.8% $24,974 $14,918 $10,057 $54.907B
Texas (5-yr) All 10,992,816 $111,362 11.1% $12,395 $7,097 $5,297 $136.251B
Dallas County Q1 196,547 $18,217 31.2% $5,685 $2,962 $2,723 $1.117B
Dallas County Q2 196,547 $48,870 15.7% $7,667 $4,157 $3,509 $1.507B
Dallas County Q3 196,547 $78,254 13.0% $10,173 $5,598 $4,574 $1.999B
Dallas County Q4 196,547 $121,993 10.9% $13,299 $7,705 $5,594 $2.614B
Dallas County Q5 196,547 $301,987 8.7% $26,254 $15,694 $10,560 $5.160B
Dallas County All 982,737 $113,864 11.1% $12,615 $7,223 $5,392 $12.398B
HD109 Q1 12,634 $20,606 30.0% $6,180 $3,230 $2,950 $0.078B
HD109 Q2 12,634 $51,668 15.4% $7,973 $4,330 $3,644 $0.101B
HD109 Q3 12,634 $78,992 12.9% $10,215 $5,624 $4,592 $0.129B
HD109 Q4 12,634 $117,910 11.1% $13,070 $7,535 $5,534 $0.165B
HD109 Q5 12,634 $218,103 9.6% $20,839 $12,326 $8,513 $0.263B
HD109 All 63,170 $97,456 12.0% $11,656 $6,609 $5,046 $0.736B

For each area, households are divided into fifths using the ACS 2020–2024 five-year estimates. Each fifth’s mean income is adjusted 1.3% to 2025 dollars, and its burden rate is read from the statewide curve of Texas taxes as a share of income (Section 3), interpolating between the statewide quintile means. Direct and indirect amounts use the statewide hidden share at the same income. House District 109 is the 2024-plan district (Census GEO_ID 620L900US48109).

Data Source Registry
Every data element and its official source.
Table
Source Registry
Official source for each data element
Data element Publisher Official source Accessed
Current Texas state taxes, FY2025 Texas Comptroller of Public Accounts https://comptroller.texas.gov/transparency/reports/cash-report/ 2026-10-20
Property tax levies, TY2025 Texas Comptroller, Property Tax Assistance Division https://comptroller.texas.gov/taxes/property-tax/rates/ 2026-10-20
Local sales tax allocations, CY2025 Texas Comptroller / Texas Open Data Portal https://data.texas.gov/dataset/vfba-b57j 2026-10-20
Other local taxes, FY2024 U.S. Census Bureau https://www.census.gov/data/datasets/2024/econ/local/public-use-datasets.html 2026-10-20
Tax incidence tables Texas Comptroller (Pub. 96-463) https://comptroller.texas.gov/transparency/reports/tax-exemptions-and-incidence/ 2026-10-22
Spending by income quintile, 2022–23 U.S. Bureau of Labor Statistics https://www.bls.gov/cex/tables/geographic/mean/2023/cu-state-tx-income-quintiles-before-taxes-2-year-average-2023.htm 2026-10-22
Price changes, 2021–2025 U.S. Bureau of Labor Statistics https://www.bls.gov/regions/southwest/data/consumerpriceindexaahistorical_southwest_table.htm 2026-10-22
Households, income, tenure (Texas) U.S. Census Bureau, ACS 2024 1-year https://data.census.gov/ 2026-10-22
Texas, Dallas County, HD109 U.S. Census Bureau, ACS 2020–2024 5-year https://data.census.gov/ 2026-10-22
Property tax share of rent National Apartment Association https://naahq.org/research/dollar-rent-tool 2026-10-22
Property tax share of rent, 2026 National Apartment Association (Yardi Matrix data) https://naahq.org/news/expense-watch-property-taxes-continue-rise-across-us-apartment-markets 2026-10-22
Property tax share of rent, testimony Texas Apartment Association https://www.taa.org/wp-content/uploads/2024/12/09-04-24-senate-finance-written-testimony-signed.pdf 2026-10-22
State and local taxes, all states, FY2024 U.S. Census Bureau, Government Finances https://www.census.gov/data/datasets/2024/econ/local/public-use-datasets.html 2026-10-23
Personal income and price parities by state U.S. Bureau of Economic Analysis https://apps.bea.gov/regional/downloadzip.htm 2026-10-23
Business taxes by state, FY2024 Ernst & Young / Council On State Taxation https://www.cost.org/globalassets/cost/stri/studies-and-reports/2511-10951-cs-50-state-report-v10.pdf 2026-10-23
Distribution of taxes by income, all states Institute on Taxation and Economic Policy https://itep.org/whopays-7th-edition/ 2026-10-23
State tax competitiveness rankings Tax Foundation https://taxfoundation.org/research/all/state/2026-state-tax-competitiveness-index/ 2026-10-23
Texas small business profile U.S. Small Business Administration https://advocacy.sba.gov/wp-content/uploads/2025/06/Texas_2025-State-Profile.pdf 2026-10-23
Franchise tax thresholds and rules Texas Comptroller https://comptroller.texas.gov/taxes/franchise/ 2026-10-23
Business personal property exemption Texas Comptroller https://comptroller.texas.gov/taxes/property-tax/docs/96-1425.pdf 2026-10-23
Population, race, age, income by group (Texas) U.S. Census Bureau, ACS 2024 1-year https://data.census.gov/ 2026-10-22
Population, race, age, income by group (local) U.S. Census Bureau, ACS 2020–2024 5-year https://data.census.gov/ 2026-10-22
Living wage budgets, Texas Massachusetts Institute of Technology https://livingwage.mit.edu/states/48 2026-10-22
Living wage budgets, Dallas County Massachusetts Institute of Technology https://livingwage.mit.edu/counties/48113 2026-10-22
Consumer spending, national accounts U.S. Bureau of Economic Analysis https://apps.bea.gov/regional/downloadzip.htm 2026-10-21

All data were downloaded or transcribed from the original publishers. The Comptroller incidence tables were transcribed from the published report and checked so that every row sums to the published total.

References

Sources are organized by the sections of this article they principally inform. All sources are official government data, statutes, official statements or original published research.

The Texas Tax System and Its Tiers — Sections 1, 2, 4 and 13

Office of the Governor. (2025, May 5). Governor Abbott recognizes 2025 Travel and Tourism Week in Texas [Press release]. https://gov.texas.gov/news/post/governor-abbott-recognizes-2025-travel-and-tourism-week-in-texas

Reports Travel Texas research showing 62 million travelers visited Texas in 2024 from other states and countries, alongside more than 67 million Texans on overnight trips within the state. It supports the reason hotel occupancy taxes are excluded: they are paid by visitors and business travel as well as Texans.

Tex. Tax Code ch. 151 (2025). Limited sales, excise, and use tax. https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm

The state sales tax statute, including the exemptions for groceries and residential utilities. Used to identify which spending lines are taxable at checkout.

Texas Comptroller of Public Accounts. (2025a). State of Texas 2025 annual cash report: Revenues and expenditures of state funds for the year ended August 31, 2025 (Publication 96-368). https://comptroller.texas.gov/transparency/reports/cash-report/

The official record of every state tax collected in fiscal 2025, by revenue object. It supplies the state tax amounts allocated in this article.

Texas Comptroller of Public Accounts. (2025b, January). Tax exemptions & tax incidence: A report to the Governor and the 89th Texas Legislature (Publication 96-463). https://comptroller.texas.gov/transparency/reports/tax-exemptions-and-incidence/

The Comptroller’s required study of who pays Texas taxes. Its tables show the initial payers and the final bearers of eight major taxes by household income quintile, tenure and export. Those shares drive every household figure in this article.

Texas Comptroller of Public Accounts. (2026b). Property tax exemptions. https://comptroller.texas.gov/taxes/property-tax/exemptions/

Confirms the school district residence homestead exemption of $140,000, the additional $60,000 school exemption for homeowners 65 or older or disabled, and that the exemption applies only to a principal residence. Cited to note that the incidence study predates these amounts, that rental homes receive no homestead exemption (Section 5), and that senior estimates in Section 10 do not reflect the additional exemption.

Texas Comptroller of Public Accounts. (2026c). Sales tax allocation: City; County, MTA, SPD [Data sets]. Texas Open Data Portal. https://data.texas.gov/dataset/vfba-b57j

Monthly local sales tax allocations to cities, counties, transit authorities and special purpose districts. It supplies the calendar-2025 local sales tax total.

Texas Comptroller of Public Accounts, Property Tax Assistance Division. (2026a). 2025 tax rates and levies: Counties, cities, school districts, and special districts [Data set]. https://comptroller.texas.gov/taxes/property-tax/rates/

Tax-year 2025 property tax levies for every taxing unit in Texas. It supplies the property tax totals in Sections 1 and 4.

U.S. Census Bureau. (2026a). 2024 state & local government finance datasets and tables: Individual unit files [Data set]. https://www.census.gov/data/datasets/2024/econ/local/public-use-datasets.html

Census survey of state and local government finances, fiscal 2024. It supplies local utility, vehicle registration, license and other taxes that are not in the Comptroller’s sales or property tax data, and the state and local tax totals by type for all 50 states used in Section 12.

Businesses and Texas Among the States — Sections 11 and 12

Ernst & Young LLP, Council On State Taxation, & State Tax Research Institute. (2025, December). Total state and local business taxes: State-by-state estimates for FY24. https://www.cost.org/globalassets/cost/stri/studies-and-reports/2511-10951-cs-50-state-report-v10.pdf

The 23rd annual estimate of state and local taxes paid by businesses in every state, built from Census government finance data. It supplies Texas business taxes by type, the business share of taxes and the business tax rate for all 50 states. The study is sponsored by a business tax organization; its methods are documented.

Institute on Taxation and Economic Policy. (2024, January). Who pays? A distributional analysis of the tax systems in all 50 states (7th ed.). https://itep.org/whopays-7th-edition/

A microsimulation study of state and local taxes as a share of family income by income group in every state, with a Texas profile at https://itep.org/whopays/texas-who-pays-7th-edition/. It ranks Texas the 7th most regressive system. ITEP measures tax fairness by income; its figures exclude seniors.

Tax Foundation. (2025, October). 2026 State Tax Competitiveness Index. https://taxfoundation.org/research/all/state/2026-state-tax-competitiveness-index/

Scores each state’s tax structure on competitiveness as of July 1, 2025, ranking Texas 7th overall and by component. The index measures structure and competitiveness, not how much residents pay or who bears it.

Texas Comptroller of Public Accounts. (n.d.). Franchise tax overview (Publication 98-806). https://comptroller.texas.gov/taxes/publications/98-806.php

Lists the entities that do not owe franchise tax, including sole proprietorships and general partnerships owned entirely by individuals.

Texas Comptroller of Public Accounts. (2025c, December). Texas is open for small business. Fiscal Notes. https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/

The Comptroller’s summary of small-business facts, including the increase in the business personal property exemption to $125,000 from $2,500 and the $2.65 million franchise tax threshold for 2026.

Texas Comptroller of Public Accounts. (2026a). Franchise tax: Tax rates, thresholds and deduction limits. https://comptroller.texas.gov/taxes/franchise/

Official franchise tax rates and the no-tax-due revenue thresholds by report year ($2.47 million for 2024–2025; $2.65 million for 2026–2027).

Texas Comptroller of Public Accounts, Property Tax Assistance Division. (2026b, January). Texas property tax basics (Publication 96-1425). https://comptroller.texas.gov/taxes/property-tax/docs/96-1425.pdf

States the $125,000 exemption for income-producing tangible personal property under Tax Code §11.145(b).

U.S. Bureau of Economic Analysis. (2026a). SAINC1 state personal income summary and SARPP regional price parities by state [Data set]. https://apps.bea.gov/regional/downloadzip.htm

Official state personal income, population and price-level data for 2023–2024. It supplies taxes as a share of personal income, prices relative to the U.S. and price-adjusted income in Section 12.

U.S. Small Business Administration, Office of Advocacy. (2025). 2025 small business profile: Texas. https://advocacy.sba.gov/wp-content/uploads/2025/06/Texas_2025-State-Profile.pdf

Federal profile of Texas small businesses from Census business statistics: 3.5 million small businesses, 99.8% of all businesses, employing 44.4% of Texas workers.

Households, Rent, Income, Spending and People — Sections 3, 5, 6, 8, 9 and 10

Bajomo, E. (2026, October 15). Expense watch: Property taxes continue to rise across U.S. apartment markets. National Apartment Association. https://naahq.org/news/expense-watch-property-taxes-continue-rise-across-us-apartment-markets

Yardi Matrix Financial Benchmarking Data for the 12 months ending July 2026, showing property taxes as a share of total income for market-rate apartments by market, including Austin, Dallas and Fort Worth. A second, independent data source for the rent share.

National Apartment Association. (2025). Dollar of rent tool [Interactive data tool and data file]. Data: STATVAL (Multifamily Comps). https://naahq.org/research/dollar-rent-tool

Breaks down each dollar of apartment rent into property taxes, operating costs, payroll, capital reserves, mortgage and profit for Texas and its metros, 2023–2025, from standardized operating statements drawn from CMBS trustee reports and lender appraisals. It supplies the measured share of rent that pays the owner’s property taxes in Section 5.

Texas Apartment Association. (2024, September 4). Written testimony to the Senate Committee on Finance [Testimony]. https://www.taa.org/wp-content/uploads/2024/12/09-04-24-senate-finance-written-testimony-signed.pdf

The statewide rental-housing association’s signed testimony, stating that approximately 20% of every rent dollar paid by Texas renters goes toward property taxes. An industry statement without a published method; used as the upper end of the range.

U.S. Bureau of Economic Analysis. (2026b). SAPCE: Personal consumption expenditures by state, 1997–2025 [Data set]. https://apps.bea.gov/regional/downloadzip.htm

Texas consumer spending by category from the national accounts. Used only to show how much spending the federal survey captures.

U.S. Bureau of Labor Statistics. (2024). Texas: Quintiles of income before taxes, 2022–2023 [Consumer Expenditure Surveys state-level research table]. https://www.bls.gov/cex/tables/geographic/mean/2023/cu-state-tx-income-quintiles-before-taxes-2-year-average-2023.htm

Average spending, income and household characteristics for Texas consumer units by income quintile. It supplies the spending patterns in Section 6 and divides directly paid taxes among income groups.

U.S. Bureau of Labor Statistics. (2026). Consumer Expenditure Surveys: Questions and answers. https://www.bls.gov/cex/csxfaqs.htm

BLS notice that state tables ended in 2026, with Texas available for 2017–2023. Documents why 2022–2023 is the latest Texas table.

U.S. Bureau of Labor Statistics, Southwest Information Office. (2026). Consumer Price Index, annual average historical, 2021–2025. https://www.bls.gov/regions/southwest/data/consumerpriceindexaahistorical_southwest_table.htm

Annual price changes by category for the Dallas–Fort Worth area. Used to express spending and income in 2025 dollars.

U.S. Census Bureau. (2025). American Community Survey 2024 1-year estimates: Detailed tables [Data set]. https://data.census.gov/

Household counts, income quintiles, household types, tenure, rent, renters and rent by type of structure, home values and real estate taxes for Texas, plus population by age, race and ethnicity, median income by race, age of householder and family type, and poverty. It supplies the statewide household, income, rental and demographic figures in Sections 3, 5, 7, 10 and 12. Any table can be opened directly, for example https://data.census.gov/table/ACSDT1Y2024.B19081?g=040XX00US48 (household income quintile means, Texas); replace the table ID (B19081) to open the others.

U.S. Census Bureau. (2026b). American Community Survey 2020–2024 5-year estimates: Detailed tables [Data set]. https://data.census.gov/

Five-year estimates for Texas, Dallas County and State House District 109 (2024 plan), the only Census income series published for state House districts, including renters and rent by type of structure, home values, population by race, ethnicity and age, and median income by group. It supplies the local figures in Sections 5, 8, 9 and 10. Any table can be opened directly, for example https://data.census.gov/table/ACSDT5Y2024.B19081?g=620L900US48109 (State House District 109); use g=050XX00US48113 for Dallas County.

Living Wage — Section 7

Glasmeier, A. K. (2026a). Living wage calculator: Dallas County, Texas. Massachusetts Institute of Technology. https://livingwage.mit.edu/counties/48113

Basic-needs budgets and living wages for 12 household types in Dallas County, which includes House District 109 (February 2026 release, 2025 dollars). It supplies the Dallas County budgets in Section 7.

Glasmeier, A. K. (2026b). Living wage calculator: Texas. Massachusetts Institute of Technology. https://livingwage.mit.edu/states/48

Basic-needs budgets and living wages for 12 household types for Texas as a whole (February 2026 release, 2025 dollars). It supplies the statewide family and single-adult budgets in Section 7.

Glasmeier, A. K. (2026c). Methodology. Living wage calculator. Massachusetts Institute of Technology. https://livingwage.mit.edu/pages/methodology

Explains the calculator’s data and confirms that sales and property taxes are already inside each basic-needs cost.

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