How to Make Transparent Text in Photoshop 2026

Learn how to create transparent text in Photoshop so your image behind the text shows through the letters! A step-by-step tutorial for Photoshop 2026.
Download the PDF: How to Make Transparent Text in Photoshop 2026
Need to add text to an image but the background is too busy? Try using transparent text, a classic design trick that’s super easy to create in Photoshop.
Instead of struggling to make standard text readable on a cluttered background, we’ll surround the text with a solid block of color, and make the letters themselves completely transparent. This turns your text into a custom frame for the subject underneath.
The process is simple. We’ll add a solid white layer above the image, type out our text, and use a quick trick inside Photoshop’s Advanced Blending options to turn that type into a knockout layer, instantly revealing the image below.
No AI tools are used for this effect. We’ll create it from scratch using standard Photoshop techniques.
Here’s an example of what the transparent text area will look like when we’re done:
Which Photoshop version do I need?
I'm using Photoshop 2026. Use the Creative Cloud Desktop app to make sure Photoshop is up to date.
Let's get started!
Step 1: Open your image
Start by opening the image. I'll use this image of the New York skyline from Adobe Stock:
Step 2: Add a new layer
In the Layers panel, we see the image on the Background layer.
Click the Add New Layer icon at the bottom of the panel.
Photoshop adds a new blank layer (Layer 1) above your image.
We’ll fill this layer with white to create the solid background for our text.
Step 3: Fill the new layer with white
Fill the layer with white by going to Edit > Fill (or by pressing Shift+F5).
Set the Contents to White in the Fill dialog box. Then click OK.
Photoshop fills the layer with white, temporarily hiding the image from view.
Step 4: Lower the layer opacity
In the Layers panel, lower the Opacity of Layer 1 to 75%.
Lowering the opacity lets you see the image through the white layer, making it easy to position your text.
Step 5: Select the Type Tool
Grab the Type Tool from the toolbar.
Step 6: Choose your font
Select your font in the Options Bar. I’m using Futura PT Heavy, but any thick font works best so the image underneath has plenty of room to show through.
Set the font size to 150 pt. We’ll resize the text later, but this gives us a solid starting point.
Step 7: Set the type color to black
Still in the Options Bar, make sure your type color is black (press D on your keyboard to quickly reset to default colors).
Black makes the text easy to see against the white background for now, but it will disappear once we make the text transparent.
Step 8: Add your text
Click inside the document and add your text. I’ll type NEW YORK CITY.
Click the check mark in the Options Bar to accept it.
Check your Layers panel to make sure the new type layer is sitting directly above Layer 1.
Step 9: Resize the text
Go to Edit > Free Transform (or press Ctrl+T / Cmd+T).
You’ll see the transform box and handles appear around your text.
Before dragging them, check the Options Bar and make sure the link icon between the Width (W) and Height (H) fields is selected.
This locks the aspect ratio so you don’t distort the letters as you resize.
Drag any of the handles to resize your text.
Make the letters large enough to cover a good portion of your image so the final transparent effect really stands out.
Click and drag inside the transform box to move your text into the perfect position over your background.
When you’re happy with the placement, click Done in the Contextual Task Bar (or the check mark in the Options Bar)to accept the changes and exit Free Transform.
Step 10: Open the Blending Options
With your type layer selected in the Layers panel, click the fx icon at the bottom.
Then choose Blending Options from the top of the menu.
Step 11: Change Knockout to Shallow
In the Advanced Blending section, change the Knockout setting from None to Shallow.
This turns your text into a knockout layer, using the letter shapes to punch a hole straight through the white layer to reveal the photo below.
Step 12: Lower the Fill Opacity to 0%
Right now, your text is still black. To reveal the knockout effect, lower the Fill Opacity to 0%.
Click OK to close the Layer Style dialog box.
Your text is now fully transparent, punching a clean hole through the white layer to reveal the background image.
Step 13: Select Layer 1
Let’s resize the white background so it doesn’t cover the entire photo.
Start by clicking Layer 1 in the Layers panel to select it.
Step 14: Resize the layer with Free Transform
Go back to Edit > Free Transform (or press Ctrl+T / Cmd+T).
Before dragging the handles, check the Options Bar and unlink the Width (W) and Height (H) fields.
This lets you resize the white box freely without being locked to its original proportions.
Drag the top handle down to just above the top of your text.
Then drag the bottom handle up to just below the bottom of your text.
Click the check mark in the Options Bar to accept it and close Free Transform.
Step 15: Adjust the layer opacity
Finally, adjust the Opacity of Layer 1 to fine-tune your effect. Increasing the opacity makes the white background more solid and the text easier to read, while decreasing it blends the frame further into the photo.
I recommend setting the Opacity to around 85%.
And here is the final transparent text effect after fine-tuning the opacity.
Problem: When the image is not on the Background layer
The steps we just covered work perfectly when your image is on the Background layer. But what happens if your image is on a normal layer? Let’s test it out.
In the Layers panel, click the lock icon on the Background layer to unlock it.
You’ll see the name change to Layer 0, which tells us it has been converted into a normal layer.
Instantly, the transparent text effect breaks. Instead of your photo showing through the letters, you’ll see Photoshop’s checkerboard pattern, meaning those areas are now completely transparent.
Solution: Placing the layers in a group
The fix is simple: we need to place the type layer and the white background (Layer 1) into a layer group.
In the Layers panel, click the type layer to select it, then hold Shift and click Layer 1 to select them both.
Go to Layer > New > Group from Layers.
Accept the default layer group options and click OK.
Check your Layers panel to see both layers inside Group 1.
By containing the layers in a group, the knockout effect is restored and your image is once again visible through the text.
And there we have it! That's how to create transparent text in Photoshop 2026.
Don't forget, all of my Photoshop tutorials are available to download as PDFs.
Related tutorials:
- How to create a gold text effect
- Using the new Clarity and Dehaze adjustment layer in Photoshop 2026
- How to fix Nano Banana in Photoshop 2026