Texas Cities Shine with Lowest Tax Rates in U.S. Study

A consistent theme in conversations right now is the increasing expense of everything. It feels like our dollars aren't stretching as far as they used to, and some of us have difficult decisions to make.

If you live in Texas, though, you're doing better than a lot of others, at least when it comes to taxes. A recent study examined the tax burdens families face, and there was some good news for the Lone Star State.

In this study done by Upgraded Points, cities and towns in Texas consistently ranked among the places with the lowest tax rates on families. From major metros to small cities, Texas families fared better than most.

Top Texas Cities With Lowest Tax Rates

When it comes to cities with the lowest tax rate, Texas had three cities in the top 10. San Antonio, Houston, and Dallas claimed spots at the top of the list. San Antonio and Houston tied for the lowest tax rate.

READ MORE: Two Texas Cities Named Best Places to Retire in 2025 Rankings

Even Amarillo, Texas, fared better than other small metro areas in the nation. Out of 228 cities included in the study, Amarillo is ranked at 213. That means the tax rate in Amarillo is lower than 212 other metro areas of the same size.

Amarillo’s Tax Advantage Explained

The average tax rate for a city of Amarillo's size is just a little over 13% across the nation. The study shows Amarillo with a tax rate just over 9%. According to the study, families in Amarillo pay about $7,000 less in taxes when compared to the national average.

READ MORE: 2025's Richest Texas Billionaires, According To Forbes

One major factor could be that Texas does not have individual state income tax.

Even with the burden of growing costs, this is news that is worth feeling good about. At least we aren't paying as much.