Updated September 4, 2026. Quick answer: No. The Texas Constitution flatly prohibits a tax on individuals’ net income, so pensions, 401(k)/IRA withdrawals and Social Security are all untaxed at the state level.
Read box by box from the IRS form text: Form 1099-R boxes 14 to 19.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Texas tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Texas tax 403(b) and 457(b) withdrawals.
Two Texas city police and fire systems, with options, DROP and refund rules from their own documents: San Antonio Fire and Police pension decisions and Austin Police Retirement System decisions.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Texas a community property state?.
The Houston Firefighters’ Relief and Retirement Fund DROP and benefit rules, from the Fund’s own documents: Houston firefighters retirement decisions.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Texas tax withholding on IRA and 401(k) withdrawals.
Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Texas tax TSP withdrawals?.
A pension earned in another state, or paid after a move, is covered here: does Texas tax out-of-state pensions.
The Fort Worth Employees’ Retirement Fund options, DROP and refund rules, from its own handbooks: Fort Worth ERF retirement decisions.
The Houston HPOPS survivor, lump sum, DROP and refund rules, from the system’s own documents: Houston HPOPS retirement decisions.
The Austin COAERS and Dallas ERF and DPFP payment options and refund rules, from the systems’ own documents: Austin COAERS retirement decisions, Dallas ERF retirement decisions and Dallas DPFP retirement decisions.
The Houston HMEPS annuity options and refund rules, from the system’s own documents: Houston HMEPS retirement decisions.
Trusts have their own page: does Texas tax trust income.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Texas have an inheritance tax?.
Dividends and interest have their own page: does Texas tax dividends and interest.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Texas tax HSA contributions?.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Texas have a gift tax?.
Annuity payments have their own page: does Texas tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Texas have an estate tax?.
Military retired pay has its own page: does Texas tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Texas 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Texas tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Texas tax 401(k) and IRA withdrawals.
The TCDRS and ERS payment options, lump sums and refunds, from the systems’ own documents: TCDRS retirement decisions and ERS of Texas retirement decisions.
The TMRS payment options, partial lump sum and refund: TMRS retirement decisions.
Related state retirement tax guides: Connecticut to Texas Retirement Taxes.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Texas taxes retirement income generally.
The rule in the source’s own words. Texas Constitution, Article VIII, Section 24-a: “The legislature may not impose a tax on the net incomes of individuals, including an individual’s share of partnership and unincorporated association income.” (source, read October 7, 2026). This page’s governing citation: Tex. Const. art. VIII, § 24-a (added November 5, 2019).
A worked example. A retiree who takes a $40,000 pension payment and a $10,000 IRA withdrawal has $50,000 of retirement income. The section bars a Texas tax on the net incomes of individuals, so the Texas state income tax on that $50,000 is $0. Federal income tax still applies to it.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Not taxed: the state constitution prohibits an individual income tax outright. |
|---|---|
| Private (employer) pensions | Not taxed, for the same reason. |
| Federal government pensions (FERS/CSRS) | Not taxed, for the same reason. |
| Military retirement pay | Not taxed, for the same reason. |
| IRA and 401(k)/403(b) distributions | Not taxed, for the same reason. |
| General retirement-income exclusion | Not applicable: there is no income tax to exclude retirement income from. |
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Social Security is not taxed either, for the same reason. Social Security has its own rules in every state; see the full breakdown in how Texas taxes retirement income generally.
Figures verified against the Texas Constitution official text (Texas Legislative Council), Art. VIII sec. 24-a on September 30, 2026.
Statute and sources
Governing citation: Tex. Const. art. VIII, sec. 24-a, “Individual Income Tax Prohibited” (added Nov. 5, 2019).
Read September 4, 2026.
Related: how Texas taxes retirement income generally · does Texas tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.