Roth Conversion in Texas

A Roth conversion in Texas carries a state income tax rate of 0%. Texas has no individual income tax, so the amount you convert, and every other dollar of retirement income you draw, is not taxed at the state level at all.

For a Texas resident the state tax question is settled before it starts: the rate is zero, with no bracket, exclusion, or age test. That moves the real decision onto federal ground. This page confirms what Texas does and does not tax in retirement, then covers the federal costs that decide whether a conversion makes sense: your federal bracket, Medicare IRMAA surcharges, and the Social Security tax torpedo. For mechanics that apply in every state, see our Roth conversion service overview and state-by-state Roth conversion tax guide.

Does Texas tax a Roth conversion?

A conversion of pre-tax IRA or 401(k) dollars is treated as ordinary income for the year. In most states that income flows onto a state return; Texas has no such return. It is one of nine states with no broad individual income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), and the rule is durable: the Texas Constitution, Article VIII, Section 24-a (added by voters in November 2019 as Proposition 4) flatly prohibits the legislature from imposing a tax on the net incomes of individuals. Introducing a personal income tax would first require repealing that ban, which itself takes a constitutional amendment, meaning a two-thirds vote of each house of the Legislature followed by statewide voter approval (Source: Texas Legislature, HJR 38, 2019; Ballotpedia, Texas Proposition 4, 2019). Because the state variable is zero, the size and timing of a Texas conversion turn on federal brackets, modeled in our how much to convert to Roth and Roth conversion break-even guides.

Is retirement income taxed in Texas? 401(k) and IRA withdrawals

This matters for reading Texas against other “retirement-friendly” states. Pennsylvania and Illinois carve qualified retirement and IRA distributions out of a tax that otherwise exists, which brings eligibility rules. Texas has no carve-out because it has no income tax base to carve from. RMDs, ordinary withdrawals, and Roth conversions are untaxed by the state at any age and amount. A Roth account itself never has RMDs during the original owner’s lifetime under federal law, and qualified Roth withdrawals are federally tax-free once the account is five years old and you are past age 59.5.

Does Texas tax Social Security benefits?

Federally, Social Security is taxed on “provisional income”: up to 50% of benefits become taxable above $25,000 (single) or $32,000 (joint), and up to 85% above $34,000 or $44,000 (Source: IRS Publication 915, 2026). Texas adds nothing. The wrinkle: conversion income raises provisional income, pulling more of your benefit into the 50% and 85% bands, a federal effect covered below and in our taxation of Social Security benefits guide.

Does Texas tax pension income?

Many income-tax states offer partial pension exclusions that vary by pension type, age, or dollar cap. Texas needs none of that machinery: a teacher’s pension, a government pension, military retired pay, and a private employer pension are all untaxed. That simplicity draws retirees from higher-tax states, a move we cover in our moving to a tax-friendly state in retirement guide.

Texas estate tax and inheritance tax in 2026

This matters for a conversion because a Roth is an efficient asset to leave to heirs: it passes income-tax-free to beneficiaries, who have their own withdrawal window under federal rules. In Texas that legacy plan faces no state estate or inheritance tax on top. The only estate tax to plan around is federal, where the 2026 exemption is a permanent $15,000,000 per person under the One Big Beautiful Bill Act, with a 40% top rate (Source: federal law; see our 2026 estate tax exemption guide). Most Texas households sit far below that figure.

What else Texas retirees pay: property tax and the over-65 exemption

Texas raises revenue without an income tax, so the cost lands elsewhere:

• Property tax: roughly a 1.5% effective owner-occupied rate statewide (Source: Tax Foundation 2026 Texas page; WalletHub 2026 property tax rankings). Homeowners age 65 or older qualify for an added homestead exemption on school taxes, and the school-tax “ceiling” freezes that portion so it does not rise as values climb (Source: Texas Comptroller of Public Accounts, 2026). A conversion does not affect property tax, since the levy is on home value, not income.
• Sales tax: 6.25% state, plus up to 2% local, for a maximum combined 8.25%. Groceries and prescription drugs are exempt (Source: Texas Comptroller, 2026).
• No income tax: which is why conversion income, withdrawals, Social Security, and pensions all escape state tax.

The takeaway: Texas trades an income tax you would otherwise pay on a conversion for property and sales taxes a conversion does not touch. The one tax that responds to a large conversion, an income tax, is the one Texas does not have.

Illustrative state tax on a $100,000 Roth conversion: Texas vs. a taxed state

The table below is illustrative only, meant to show the size of the state-only difference, not a projection of your result. It isolates state tax and holds federal tax aside, since federal tax is the same wherever you live.

State of residence	State income tax on a $100,000 conversion	Basis (2026)
Texas	$0	No individual income tax (Tax Foundation 2026 Texas page)
California (9.3% marginal bracket)	~$9,300	Conversion stacked in the 9.3% bracket, $72,725 to $371,479 single (California FTB, 2026)
California (11.3% marginal bracket)	~$11,300	Higher-income filers whose conversion lands in an upper bracket (California FTB, 2026)

The point is not that one state is “best,” a claim we do not make. It is that the state-tax cost is a live variable in most states and a settled $0 in Texas, which is why a no-state-income-tax Roth conversion shifts the whole decision onto federal levers. Your figures depend on your income, filing status, and conversion year; our Roth conversion state taxes resource compares states directly.

With no state income tax, a Texas Roth conversion has only federal costs: brackets, IRMAA, and the Social Security torpedo

The federal side is where a Texas conversion is actually decided. Three federal mechanics govern a Texas conversion:

Federal lever	What it is	Why it decides a Texas conversion
Ordinary-income brackets	The converted amount stacks on top of your other income and is taxed at 10% to 37% federally (Source: IRS, 2026).	With no state tax in the calculation, a common approach is to convert an amount that fills a lower bracket without spilling into the next one.
Medicare IRMAA surcharges	Income-Related Monthly Adjustment Amounts raise Medicare Part B and Part D premiums when modified adjusted gross income crosses set thresholds. It is a cliff, not a phase-in, and it uses a two-year lookback, so a 2026 conversion can raise 2028 premiums.	A conversion that nudges MAGI one dollar over an IRMAA threshold raises premiums for a full year. Thresholds adjust annually; see our Medicare IRMAA 2026 brackets and premiums page.
Social Security tax torpedo	As conversion income raises provisional income, more of your Social Security benefit becomes federally taxable, up to 85% (Source: IRS Publication 915, 2026).	A conversion can be taxed at a higher effective rate than the headline bracket, because it also makes previously untaxed benefits taxable.

In practice, many Texas conversion plans describe converting within a target federal bracket during low-income years while staying below the next IRMAA tier and monitoring the effect on Social Security inclusion. Because there is no state tax to account for, the analysis has fewer moving parts than in a taxed state, though the federal thresholds still apply. Our how much to convert analysis models these thresholds year by year.

Should I move to Texas before a Roth conversion? Residency and timing

Two timing traps deserve care, and neither is legal or tax advice for your situation:

• The part-year residency trap. If you convert in the same tax year you move from an income-tax state such as California or New York, the origin state may still tax the conversion for the portion of the year you were its resident, or under its part-year and source rules. Converting after you have fully established Texas domicile, not mid-move, is the distinction that decides whether a former state can reach the income.
• Establishing domicile. Texas residency turns on domicile, physical presence, and intent, with a widely referenced 183-day guideline. A Texas driver’s license, voter registration, and homestead designation support a domicile claim. Because 4 U.S.C. 114 protects a Texas nonresident’s retirement income, the real question is which state counts you as a resident in the conversion year.

If a move is on the table, generally a Texas domiciliary at the time of a conversion has no Texas state income tax on it; whether a former state can still reach the income depends on that state’s part-year and source rules. We work through it in our tax-friendly relocation guide. Confirm your facts with a qualified tax advisor before acting.

How Rothology plans a Roth conversion for Texas residents

Because Texas removes the state variable, our work concentrates on the federal levers that remain:

• Mapping your “conversion window,” the gap years between retirement and RMD age (73, or 75 if born in 1960 or later), when your bracket is often lowest.
• Projecting how much to convert each year to fill a target federal bracket without crossing the next IRMAA tier.
• Modeling the Social Security inclusion effect so a conversion does not quietly raise your effective federal rate.
• Timing a conversion around a move to or from Texas so the correct state’s rules apply.

Q3 Advisors is a fiduciary registered investment adviser. Rothology Premier Roth Conversion is a flat-fee consulting engagement; we sell no insurance or investment products with it. Start with our Roth conversion service overview or schedule an educational call.

Frequently asked questions

Does Texas tax Roth IRA conversions?

No. Texas has no individual income tax, so a Roth IRA conversion is taxed by the state at 0%, with no bracket, exclusion, or age requirement to satisfy (Source: Tax Foundation 2026 Texas page; Texas Comptroller of Public Accounts, 2026). The converted amount is taxed only at the federal level, as ordinary income at rates up to 37%. Texas adds nothing to that federal bill.

Do you pay state tax on a Roth conversion in Texas?

No. A Texas resident pays $0 in state tax on a Roth conversion, because Texas levies no individual income tax, a rule protected by Article VIII, Section 24-a of the Texas Constitution, added by Proposition 4 in 2019 (Source: Ballotpedia, Texas Proposition 4, 2019; Tax Foundation 2026 Texas page). The only tax is federal ordinary income tax for the conversion year.

Does Texas tax Social Security benefits?

No. Texas does not tax Social Security benefits, since it has no individual income tax (Source: Tax Foundation 2026 Texas page; AARP 2026 Texas tax guide). Federal tax can still apply: up to 85% of benefits become federally taxable above provisional-income thresholds of $25,000/$34,000 for single filers and $32,000/$44,000 for joint filers (Source: IRS Publication 915, 2026). A conversion can raise that federal inclusion.

Is 401(k) or IRA withdrawal income taxed in Texas?

No. Texas taxes 401(k) and IRA withdrawals at 0%, the same treatment as a Roth conversion, because there is no state income tax to reach them (Source: Tax Foundation 2026 Texas page; Texas Comptroller, 2026). Required minimum distributions and ordinary withdrawals are untaxed by the state at any age and any amount. Federal ordinary income tax still applies to pre-tax withdrawals.

Does Texas have an estate or inheritance tax?

No. Texas has neither an estate tax nor an inheritance tax, and no state gift tax. The state death tax was repealed effective September 1, 2015 by Senate Bill 752, and Proposition 8 (approved November 2025) added a constitutional ban on any state death, estate, or inheritance tax (Source: Texas Senate Bill 752, 2015; Texas Comptroller, Inheritance Tax). Only the federal estate tax applies, with a 2026 exemption of $15,000,000 per person.

When is the best time to do a Roth conversion in Texas?

We do not name a single best time, since it depends on your facts. In Texas the state cost is $0 in every year, so timing turns on federal factors: many retirees convert during low-income “window” years between retirement and RMD age 73 (or 75 for those born in 1960 or later), filling a target federal bracket while staying below the next IRMAA tier (Source: IRS, 2026). See our break-even analysis.

Should I move to Texas before doing a Roth conversion?

That is a personal decision we do not advise on generically. Factually: a Texas domiciliary owes $0 state tax on a conversion, and federal law 4 U.S.C. 114 bars other states from taxing a nonresident’s retirement income (Source: 4 U.S.C. 114; Tax Foundation 2026 Texas page). Converting in the same year you move from a taxed state can expose the conversion to that state’s part-year rules. Confirm your facts with a tax advisor.

Sources

• Texas Comptroller of Public Accounts (the Texas state taxing authority; Texas has no Department of Revenue and no individual income tax return): individual income tax, inheritance tax, sales tax, and property tax pages, 2026.
• Tax Foundation, “2026 Texas Tax Rates & Rankings,” taxfoundation.org/location/texas/ (confirms Texas has no individual income tax; effective owner-occupied property tax rate near 1.5%), 2026.
• WalletHub, “Property Taxes by State” (2026), for the Texas effective owner-occupied property tax rate.
• AARP, “Texas State Taxes: What You’ll Owe in 2026,” aarp.org/states/texas/state-taxes-guide/.
• Texas Constitution, Article VIII, Section 24-a (added by Proposition 4, approved November 2019); Texas Legislature HJR 38 (2019); Ballotpedia, “Texas Proposition 4, Prohibit State Individual Income Tax Amendment” (2019).
• Texas Constitution, Article VIII (Proposition 8, approved November 2025, constitutionally barring any state death, estate, or inheritance tax); Texas Senate Bill 752 (2015, estate-tax repeal).
• California Franchise Tax Board (FTB), 2026 tax rate schedules, ftb.ca.gov (used for the illustrative comparison only).
• IRS Publication 915 (Social Security benefits) and 2026 federal ordinary income tax rate schedules.
• Federal law, 4 U.S.C. 114 (bars state taxation of a nonresident’s retirement income).