Texas has no state income tax. Use the stock option tax calculator with Texas tax rates to see your exact after-tax numbers.
Open Stock Option Tax Calculator →Exercising stock options in Texas means you avoid state income tax on the spread between exercise price and fair market value (for ISOs at AMT, or for NSOs at ordinary income rates). This can represent thousands of dollars in savings on a significant exercise. Federal tax still applies: NSO exercises are taxed as ordinary income, while ISO exercises may trigger the Alternative Minimum Tax. Use this calculator to model your stock option exercise scenarios with Texas's zero-state-tax advantage factored in.
Texas is one of nine states with no personal income tax. Residents keep every dollar of earnings from state-level taxation, though the state generates revenue through other means such as sales taxes, property taxes, and in some cases severance taxes on natural resources. The zero-income-tax policy makes Texas particularly attractive for high earners, remote workers, and retirees seeking to maximize their after-tax income.
The table below shows what you actually keep at five salary levels in Texas, accounting for federal tax, FICA, and zero state income tax.
See how Texas compares to other South states. Each link takes you to the stock option tax calculator landing page for that state.
For a comprehensive breakdown of Texas’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Texas take-home pay page.