**Editor’s note** This article is provided for general informational purposes only and should not be considered tax or financial advice. Tax laws can vary based on individual circumstances. Readers with specific questions are encouraged to consult a certified tax professional or financial advisor.
A new year brings several federal tax changes that will affect paychecks and tax returns for Texans in 2026, even though the state does not collect a personal income tax. Most of the changes are the result of routine inflation adjustments by the Internal Revenue Service, along with provisions from recent federal legislation designed to prevent taxes from quietly increasing as wages rise.
Higher Standard Deduction for Most Taxpayers
One of the most noticeable changes is an increase in the standard deduction, which reduces how much income is subject to federal tax. Because many Texans already use the standard deduction, this increase means a larger portion of income will not be taxed, potentially resulting in slightly higher take-home pay or smaller tax bills when returns are filed in 2027.
For the 2026 tax year:
- Single filers and married couples filing separately can deduct $16,100
- Married couples filing jointly can deduct $32,200
- Heads of household can deduct $24,150
Federal Tax Brackets Adjusted for Inflation
Federal income tax brackets remain the same percentage rates, but the income thresholds have been adjusted upward to reflect inflation. This helps prevent “bracket creep,” where taxpayers are pushed into higher tax brackets simply because wages increased to keep up with rising costs. For Texans, this change applies the same as it does nationwide, since federal income tax rules apply regardless of state tax policies.
Charitable Giving Gets a Small Boost
Taxpayers who do not itemize deductions will again be allowed to deduct some charitable donations. This provision benefits Texans who donate to churches, nonprofits, or community organizations but typically take the standard deduction instead of itemizing.
In 2026:
- Single filers may deduct up to $1,000
- Married couples filing jointly may deduct up to $2,000
Limited Impact of SALT Deduction Changes in Texas
The federal cap on deductions for state and local taxes, often referred to as the SALT deduction, has been increased significantly. However, the change will have limited impact for most Texans. Texas does not levy a state income tax, so the primary deductible state tax for Texans is property tax. While homeowners with high property taxes who itemize may benefit, many households will still find the standard deduction more advantageous.
Extra Consideration for Older Texans
Taxpayers aged 65 and older may qualify for additional deductions depending on income and filing status. These provisions are intended to ease the tax burden on retirees, including those receiving Social Security or retirement income.
No Changes to Texas Income Tax — Because There Isn’t One
Texas remains one of a handful of states without a personal income tax. That means Texans do not need to file a state income tax return, and the new federal changes are the primary tax updates most residents will see. However, Texans should remain mindful of local property taxes, which continue to be one of the largest tax expenses for many households.
What It Means Overall
For most Texans, the 2026 tax changes are modest but generally favorable. Higher deductions and adjusted tax brackets are designed to keep taxes from increasing simply due to inflation. While these changes may not dramatically alter tax bills, they are expected to provide incremental relief, particularly for middle-income households, retirees, and those who make charitable contributions.
Taxpayers are encouraged to review withholding amounts and consult a tax professional if their financial situation has changed significantly during the year.
