Updated October 7, 2026. Quick answer: No. The Texas Comptroller notes that “Texas does not levy an income tax” and the Texas Constitution bars the legislature from imposing a tax on the net incomes of individuals.
How Texas treats a pension earned elsewhere
| Item | What the state documents say |
|---|---|
| Nonresidents | The Texas Constitution bars a tax on the net incomes of individuals, and the Comptroller says the state levies no income tax. A nonresident’s pension is not taxed by Texas. The source says: “may not impose a tax on the net incomes of individuals”. The federal rule in 4 U.S.C. 114 separately bars states from taxing a nonresident’s retirement income. |
| Residents with a pension earned elsewhere | Texas residents face no state income tax on a pension earned in another state. Section 24-a of Article VIII, added by a constitutional amendment adopted in 2019, prohibits a tax on the net incomes of individuals. The Legislative Reference Library lists the amendment outcome as adopted. |
| Part-year residents (year of a move) | Texas imposes no personal income tax, so there is no part-year apportionment of income. The pages cited below describe no individual income tax return. Income received in the year of a move is not taxed by Texas. |
| Rate | Texas prints no personal income tax rate or schedule, because the Constitution bars such a tax. |
| Return to file | No Texas personal income tax return is described in the pages cited below. |
A $40,000 move-year example
A retiree receives $40,000 of pension in the year of a move: $20,000 before the move date, as a Texas resident, and $20,000 after leaving.
Texas levies no personal income tax, so the $40,000 is not taxed by Texas whether it was paid before or after the move: $0 on $40,000. Federal tax still applies.
The federal rule that protects a nonresident
4 U.S.C. 114(a) bars a state income tax on retirement income of an individual “who is not a resident or domiciliary of such State”. Retirement income means certain plan payments made as a “series of substantially equal periodic payments”, so not every payment is covered.
Related: how Texas taxes retirement income, whether Texas taxes pensions, California to Texas retirement taxes, Colorado to Texas retirement taxes, out-of-state pension tax by state, and deferred compensation lump sums after a move.
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Answer againSources
- Property Tax Cuts as Large as Texas, Fiscal Notes December 2023 (Texas Comptroller of Public Accounts): https://comptroller.texas.gov/economy/fiscal-notes/archive/2023/dec/proptax.php
- H.J.R. 38, 86th Legislature, enrolled text (Texas Legislature): https://capitol.texas.gov/tlodocs/86R/billtext/html/HJ00038F.htm
- Constitutional amendment election details, H.J.R. 38 (Texas Legislative Reference Library): lrl.texas.gov
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Government Publishing Office, 2023 edition): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.