Texas retirement taxes in 2026: what retirees pay

Texas keeps things simple for retirees: the state has no income tax. Your pension, your IRA withdrawals, withdrawals from workplace retirement accounts and your Social Security benefits are all outside the state's reach. You don't need to track any exclusions, phase-outs or special retirement rules at the state level. That makes the Texas piece of a retirement budget easier to plan than in most places, though federal tax still applies to the same income.

Texas retirement taxes at a glance (2026)

How Texas treats retirement income

Texas has no income tax, so pensions, IRA and 401(k) withdrawals and Social Security are not taxed by the state. 1

What three retirees would pay in Texas

These are estimates from Monte Climb's planner on 2026 law, for three example households. They start, as the app does, from federal taxable income: the 2026 standard deduction plus the extra amount at 65 2, the taxable part of Social Security 3 and the senior deduction 4.

• A single retiree, 67 with $54,000 of income would owe about $0 to Texas.
• A married couple, both 67 with $106,000 of income would owe about $0 to Texas.
• A married couple, both 62, before Social Security with $76,000 of income would owe about $0 to Texas.

The same couple next door

The married couple, both 67, with $106,000 of income, in Texas and the states around it:

Every figure here starts from federal taxable income, as above, so a state whose own deductions are smaller can tax more than shown.

What these estimates leave out

• City income taxes, and capital gains rules a state applies apart from its rate.
• Rules for military and public-employee pensions that some states treat separately.

What this means for your plan

Since Texas takes nothing from retirement income, your plan in this state comes down to federal tax and the other costs of living here. Without a state income tax, the order you draw from accounts and the timing of Social Security matter only for federal purposes. Monte Climb applies the Texas rules to your own plan, so you can see how pensions, account withdrawals and benefits play out when the state's share is zero.

Sources

1. Texas income tax for 2026 (Monte Climb's audit grades it high)
2. Rev. Proc. 2025-32 §4.14(1) and §4.14(3): the 2026 standard deduction and the additional amount at 65
3. IRC §86 and IRS Publication 915: how much of Social Security is taxable (thresholds set by statute, not indexed)
4. P.L. 119-21 (One Big Beautiful Bill Act) §70103: the $6,000 deduction for each person 65 or older, 2025–2028

Figures computed by code from Monte Climb's 2026 state tables (snapshot f024e17). An illustration, not tax advice.

Frequently asked questions

Does Texas tax Social Security?

In 2026, Social Security is not taxed (no income tax) in Texas.

What is Texas's income tax rate in 2026?

Texas has no state income tax.

How much state tax would a retired couple pay in Texas?

A married couple, both 67, with $106,000 of Social Security, pension and IRA income would owe about $0 to Texas in 2026, by Monte Climb's estimate.