What it costs to live and work in Texas: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Texas | Source | |
|---|---|---|
| Minimum wage | $7.25 an hour | US Department of Labor, Wage and Hour Division: State Minimum Wage Laws |
| State income tax | none | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 6.25 % | Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026) |
| Median gross rent | $1,475 a month (2024) | US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state |
Texas adopts the federal minimum wage of $7.25 an hour.
Texas has no personal income tax.
The state sales tax is 6.25 %; cities, counties and transit districts add up to 2 % (average local rate 1.95 %).
What income does rent in Texas take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,475 a month, that means a household income of about $59,000 a year before tax.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026) (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state (2024)