State retirement taxes · 2026
Does Texas tax retirement income?
Short answer: No. Texas has no individual income tax, so Social Security is not taxed. The constitution bans a personal income tax and, since 2025, a capital gains tax on individuals.
What’s taxed in Texas
2026 rules.
- Social SecurityNot taxed
- Texas has no individual income tax, so Social Security is not taxed.
- PensionsNot taxed
- Pensions are not taxed — Texas has no individual income tax.
- IRA & 401(k) withdrawalsNot taxed
- IRA and 401(k) withdrawals are not taxed.
- Military retirement payNot taxed
- Military retirement pay is not taxed.
- Income tax rateNone
- No individual income tax.
Does Texas tax Social Security?
Texas has no individual income tax, so Social Security is not taxed.
The Texas Constitution (Art. VIII, Sec. 24-a, added in 2019) prohibits a tax on the net incomes of individuals.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Texas?
Pensions are not taxed — Texas has no individual income tax.
Public and private pensions owe no state income tax.
Are IRA and 401(k) withdrawals taxed in Texas?
IRA and 401(k) withdrawals are not taxed.
With no individual income tax, withdrawals and required minimum distributions owe no state tax.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Texas?
Military retirement pay is not taxed.
What is Texas’ income tax rate?
Texas has no broad income tax.
No individual income tax. The Texas Constitution also bars a capital gains tax on individuals (added November 4, 2025) and a wealth tax. The franchise tax applies to businesses, not to individuals or sole proprietors.
What tax breaks do seniors get in Texas?
Not applicable to income tax. Texas offers property-tax homestead exemptions and freezes for people 65+ (not covered in detail here).
What changed for 2026?
A November 4, 2025 constitutional amendment added a ban on capital gains taxes for individuals. There is no income tax change for 2026–2028.
Texas has no individual income tax, and its constitution prohibits one.
How Texas compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- TexasThis pageTax-free retirement incomeSocial Security Not taxedTop rate: None
- ArkansasFriendlySocial Security Not taxedTop rate: 3.7% top
- LouisianaFriendlySocial Security Not taxedTop rate: 3% flat
- New MexicoLess friendlySocial Security Partly taxedTop rate: 5.9% top
- OklahomaFriendlySocial Security Not taxedTop rate: 4.5% top
State tax is half the picture — check the federal side
Texas retirement tax questions
Does Texas tax Social Security or pensions?
No. Texas has no individual income tax, so Social Security is not taxed. The Texas Constitution (Art. VIII, Sec. 24-a, added in 2019) prohibits a tax on the net incomes of individuals.
Are IRA withdrawals and RMDs taxed in Texas?
No. IRA and 401(k) withdrawals are not taxed. With no individual income tax, withdrawals and required minimum distributions owe no state tax.
Is Texas tax-friendly for retirees?
We rate Texas “Tax-free retirement income” for 2026. The constitution bans a personal income tax and, since 2025, a capital gains tax on individuals. Our rating covers state income tax only — not property or sales taxes, which can still matter.
Is military retirement pay taxed in Texas?
No. Military retirement pay is not taxed.
Sources for Texas
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
- State
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