Home | State Tax Profiles | Tax Calendar | Locations | Client Connect Login

Texas Prohibits State Income Tax

by David Poer, Dallas, November 2019

 

Texas is one of seven states without an income tax. Following the passage of Proposition 4, state and local governments will continue to rely on sales and property tax revenues to fund services and operations.

 

Prop 4 makes it more difficult for state leaders to ever impose an income tax in the future. It replaces a previous amendment that had been in place since 1993, under then-Lt. Governor Bob Bullock. The Bullock Amendment allowed the Legislature to impose a personal income tax only if voters approved it in a statewide referendum. It also required that new revenue from an income tax would fund school property tax cuts and education programs.

 

Under Prop 4, a two-thirds vote of the Texas House and Senate will be required to repeal the previous amendment and call a statewide election to establish an income tax.

 

“The passage of Prop 4 is a victory from taxpayers across the Lone Star State,” said Governor Greg Abbott. This ban on such a disastrous tax will keep our economy prosperous, protect taxpayers, and ensure that Texas remains the best state to live, work, and raise a family.”

 

Voters also approved eight of nine other constitutional amendments, ranging from a measure to increase school funding allocations, to a proposition allowing law enforcement dogs and horses to be adopted by their handlers.