Texas Retirement Taxes (2026): Income, Estate & Probate Rules

The income-tax picture

Why Texas probate is unusually cheap (statute-cited)

Is Texas a good state to retire in for taxes?

Texas vs. other no-tax and Sun Belt states

Comparison tables scroll horizontally on smaller screens.

2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: Texas levies no personal income tax — and unlike most no-tax states, it’s constitutionally locked in (Tex. Const. art. VIII, §24-a, adopted 2019). Social Security, pensions, 401(k) and IRA withdrawals are untaxed; there is no estate or inheritance tax. Texas’s quieter advantage is at the end of life: its probate system is among the cheapest of any large state, with three statutory shortcuts most guides never mention.

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.

Before the tax question, 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?.

Before the tax question, 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.

Selling your home? How the state taxes the profit, from its own tax documents: Does Texas tax the profit from selling your home?.

Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Texas tax TSP withdrawals?.

For a pension earned elsewhere or paid after you move: does Texas tax out-of-state pensions.

Before the tax question, the Fort Worth Employees’ Retirement Fund options, DROP and refund rules, from its own handbooks: Fort Worth ERF retirement decisions.

Before the tax question, the Houston police officers’ pension options, DROP and refund rules from the system’s own plan description: Houston HPOPS retirement decisions.

Before the tax question, the Austin and Dallas pension options, Back DROP and refund rules from the systems’ own documents: Austin COAERS retirement decisions, Dallas ERF retirement decisions and Dallas DPFP retirement decisions.

Before the tax question, the Houston municipal pension options, DROP and refund rules from the HMEPS handbook: Houston HMEPS retirement decisions.

For trust income specifically: 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?.

For dividends and interest specifically: 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?.

For annuity payments specifically: 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?.

For military retired pay: 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.

For the sale of stocks, funds or real estate: does Texas tax capital gains.

For 401(k) and IRA withdrawals specifically: does Texas tax 401(k) and IRA withdrawals.

Before the tax question, the TCDRS and ERS payment options and refund rules: TCDRS retirement decisions and ERS of Texas retirement decisions.

Before the tax question, the TMRS options and partial lump sum: TMRS retirement decisions.

Texas is one of 43 jurisdictions that do not tax Social Security at any income level in 2026. The other 8 exempt benefits only up to an income or age limit. Full rules and statutes: the 51-state table.

The income-tax picture

State income tax	None — constitutionally prohibited (Tex. Const. art. VIII, §24-a, 2019)
Social Security / pension / 401(k) / IRA	Not taxed
Estate / inheritance tax	None

Why Texas probate is unusually cheap (statute-cited)

Three mechanisms keep Texas estate settlement inexpensive:

1. Independent administration (Tex. Estates Code ch. 401): most Texas probates run with minimal court supervision, which is what drives costs down — and executor compensation is often governed by the will itself rather than the statutory default (which is a 5% commission on amounts actually received or paid out in cash, capped at 5% of the gross fair market value of the estate subject to administration under §352.002, with no commission allowed for receiving funds on hand or held in a financial institution or brokerage firm at death, for collecting life insurance proceeds, or for paying cash to an heir or legatee as such).

2. Muniment of title (ch. 257): a court may admit a will to probate as a muniment of title if it is satisfied that the estate does not owe an unpaid debt, other than a debt secured by a lien on real estate, or finds for another reason that there is no necessity for administration of the estate. The applicant must prove that four years have not elapsed since the death, and the chapter sets no dollar cap.

3. Small-estate affidavit (§205.001): intestate estates up to $75,000 (excluding homestead and exempt property) pass by affidavit after a 30-day wait.

Filing an application for probate typically runs ~$250–$450 depending on county. Context: probate cost by state · small-estate limits by state · will vs. trust calculator.

Is Texas a good state to retire in for taxes?

On the taxes this page covers: yes, top tier — $0 on retirement income (constitutionally protected, not just current policy), $0 at death, and a probate system built for cheap administration. The honest caveat every relocator should hear: Texas funds itself heavily through property taxes on homeowners, which fall outside this guide’s scope but belong in any full relocation budget — check your target county’s rates and senior provisions before deciding.

Texas vs. other no-tax and Sun Belt states

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Texas	Not taxed	Not taxed (no income tax)	None	None
Florida	Not taxed	Not taxed (no income tax)	None	None
Tennessee	Not taxed	Not taxed (no income tax)	None	None
Arizona	Not taxed	Taxed at flat 2.5%; $2,500 gov-pension subtraction	None	None

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Texas may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

Finding a financial advisor in Texas

Per the SEC’s July 2026 Investment Adviser roster, Texas has 1,062 SEC-registered advisory firms (#3 nationally) managing $4.55 trillion (#7 by AUM). Full breakdown: Texas advisor statistics. A cross-state move is exactly when fee structures deserve a second look — see the fee-drag calculator.

Thinking about moving?

Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Texas:

Moving to Texas? See retiring to Texas.

Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.

What probate costs in Texas

Texas uses a hybrid standard — a statutory ceiling or floor with reasonableness applied inside it — so the fee has a bound but not a fixed number. Its small-estate route of $75,000 reaches real property only where the homestead is the only real property in the estate — Tex. Estates Code § 205.006 transfers title to the homestead on exactly that condition. Full detail with the governing statute, the court filing fee and the threshold: Texas probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Texas Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/texas-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Figures verified against H.J.R. 38 (86th Legislature) and Texas Estates Code sections 205.001, 205.006, 257.001 and 352.002 as published on a public mirror of the official code on September 30, 2026; county filing fees, the Arizona comparison row and the SEC advisor roster were not re-checked.

Texas Retirement Taxes (2026): No Income Tax, No Estate Tax – and Unusually Cheap Probate

What this state guide covers