The state of Texas does not have a state income tax. States collect taxes in order to generate revenue to operate. Texas collects the necessary funds from property and sales taxes.Continue Reading
The lack of individual income tax is protected by Article 8 of the Texas State Constitution, which limits potential tax in the future as well.
As of 2014, there are only seven states that do not collect an individual income tax. The other six states are Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. Tennessee and New Hampshire have a limited tax on individuals, taxing only dividends and interest income.Learn more about Taxes