clip hole in raster

[RickCheney]

For example, if I have a raster layer of Digital Elevation which represents the United States and I want to keep everything except the state of Texas. I have a vector layer polygon of the state of Texas which I hope can be used to clip or mask or intersect the raster data.

How do I get the raster DEM layer with an area cutout or missing where Texas was?

[XanderBakker]

I was referring to the step where "Erase" is used to cut out Texas from the USA map. That requires an Advanced license.

[RickCheney]

The reason I am marking this answer as correct is because it provides step-by-step instructions for someone searching this forum with a similar question.. The original answer was supplied by Darren Weins and is also the correct answer.

There are many ways to achieve the same result and many correct answers, anyone with a similar task can choose which method is best for them.

Thank You, all of you who helped me along this steep learning curve.