Texas is the second-largest state by both population and area, and one of the fastest-growing: it added 8.8% to its population between 2020 and 2025, nearly three times the national rate. It has no state income tax, pays for public services largely through local property taxes, and runs its own electric grid. This guide collects the numbers and rules that matter if you live in Texas or are thinking of moving there.
Texas guides
Texas taxes
No income tax, but sales tax up to 8.25% and some of the higher property taxes in the country. Read the tax guide.
Moving to Texas
Register your car within 30 days and get a Texas license within 90. See the step-by-step guide.
Texas paycheck calculator
Estimate take-home pay after federal tax, Social Security and Medicare. Open the calculator.
What is different about Texas
No income tax, higher property tax
Texas does not tax wages, and since 2019 its constitution has prohibited a personal income tax. Local governments rely on property taxes instead: Texas homeowners pay an effective rate of about 1.25% of home value a year, compared with about 0.89% nationally. Owners who live in their home can claim a $140,000 school-tax homestead exemption. Details are in our Texas tax guide.
Sales tax up to 8.25%
The state rate is 6.25%, and cities, counties and special districts can add up to 2%. The population-weighted average combined rate is 8.20%, the 14th highest in the country. Groceries and prescription drugs are exempt.
Its own power grid
Most of Texas runs on a grid managed by ERCOT that is largely separate from the rest of the country. In much of the state, including the Houston and Dallas–Fort Worth areas, households choose their own electricity provider; Austin, San Antonio and some other cities are served by city-owned utilities instead.
No safety inspections, emissions tests in 18 counties
Texas ended annual safety inspections for most passenger vehicles in 2025. Emissions tests are still required in 18 counties, including those around Houston, Dallas–Fort Worth, Austin, El Paso and, since November 1, 2026, Bexar County (San Antonio).
254 counties
Texas has more counties than any other state. Vehicle registration, property tax appraisal and voter registration are all handled at the county level, so the office you deal with depends on where you live.
Texas at a glance
| Measure | Texas | United States |
|---|---|---|
| Population, July 1, 2025 | 31,709,821 | 341,784,857 |
| Population change, 2020–2025 | +8.8% | +3.1% |
| Median household income | $78,476 | $80,734 |
| Median home value | $283,800 | $332,700 |
| Median gross rent | $1,403 | $1,413 |
| Homeownership rate | 62.6% | 65.2% |
| Poverty rate | 13.4% | 10.6% |
| Bachelor’s degree or higher (age 25+) | 33.8% | 35.7% |
| Land area | 261,268 sq mi | 3,533,038 sq mi |
| People per square mile (2020) | 111.6 | 93.8 |
Source: U.S. Census Bureau QuickFacts. Income, home value, rent, homeownership and education are 2020–2024 American Community Survey estimates; income is in 2024 dollars.
Largest cities
Texas has five of the 15 largest U.S. cities. Houston is the largest in the state and fourth largest in the country.
| City | Population (July 2024) |
|---|---|
| Houston | 2,390,125 |
| San Antonio | 1,526,656 |
| Dallas | 1,326,087 |
| Fort Worth | 1,008,106 |
| Austin | 993,588 |
| El Paso | 681,723 |
Source: U.S. Census Bureau, Vintage 2024 city and town population estimates. Figures are for city limits, not metro areas.
Frequently asked questions
Does Texas have a state income tax?
No. Texas does not tax wages or other personal income, and a 2019 constitutional amendment prohibits one. You still pay federal income tax, Social Security and Medicare.
Is Texas cheaper to live in than the U.S. average?
Housing is. The median home value is about 15% below the national median, and median rent is close to the national figure. Property taxes and insurance can offset part of the difference for homeowners, so compare the full monthly cost, not just the price.
How fast is Texas growing?
The Census Bureau estimates Texas grew 8.8% between April 2020 and July 2025, to 31.7 million people, compared with 3.1% for the country as a whole.
What do I need to do after moving to Texas?
Register your vehicle within 30 days and get a Texas driver license within 90 days. Our Texas moving guide lists every step in order.
Last updated: November 5, 2026.
Sources
- U.S. Census Bureau: QuickFacts, Texas and United States
- U.S. Census Bureau: City and town population totals, 2020–2024
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
- FOX 4: Texas ranks 9th highest in property tax rates (Construction Coverage analysis of Census data)
- The Texas Tribune: How to apply for the Texas homestead exemption
- Texas DMV: Bexar County emissions testing begins November 1, 2026
- Public Utility Commission of Texas: Power to Choose
