Use our Texas Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Texas Paycheck is Calculated
Your paycheck represents your total earnings after taxes and deductions. The formula used to determine your net pay is:Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s a quick look at what each part means:
- Gross Pay: Your total earnings before taxes or deductions.
- Federal Income Tax: Based on your income, filing status, and W-4 allowances.
- FICA Taxes: Contributions to Social Security and Medicare.
- State Income Tax: Texas does not levy a state income tax.
- Local Taxes: Some cities or counties charge small local taxes or fees.
A Guide to Texas State Payroll Taxes
Texas State Income Tax
Texas has no state income tax. This means your wages, salaries, and bonuses are not subject to any state-level income tax withholding. This makes Texas one of the most paycheck-friendly states in the country, allowing workers to keep a higher share of their gross pay.
| Tax Type | Rate |
|---|---|
| State Income Tax | None |
Because there’s no state income tax, there are no state tax brackets, standard deductions, or personal exemptions applicable to payroll in Texas.
State-Specific Programs and Withholdings
While Texas does not collect income tax, employers must contribute to the state unemployment insurance (SUI) program. This is an employer-paid tax and does not affect employee take-home pay.
Texas does not require employee contributions for state disability insurance (SDI), paid family leave, or other similar programs. However, residents may pay higher sales and property taxes compared to states with income taxes.
Understanding Federal and FICA Taxes
Federal taxes and FICA contributions apply to every paycheck regardless of where you live in the United States. These make up the main deductions from your Texas paycheck.
For 2025, the FICA tax rates are:
- Social Security: 6.2% of wages up to $168,600
- Medicare: 1.45% of all wages, with an additional 0.9% for individuals earning over $200,000
Federal income tax rates are progressive, meaning higher income levels are taxed at higher rates. The amount withheld depends on your income, filing status, and dependents.
Local Taxes in Texas
Texas does not impose local income taxes at the city or county level. However, some localities may charge small occupational or service fees that employers handle separately. Residents in major cities such as Houston, Austin, Dallas, and Fort Worth typically do not see any local income tax deductions on their pay stubs.
Frequently Asked Questions (FAQs) About Texas Paychecks
What is the minimum wage in Texas?
The minimum wage in Texas is $7.25 per hour in 2025, matching the federal minimum wage rate.
How often are paydays in Texas?
Employers in Texas must pay employees at least once per month. Many businesses pay bi-weekly or semi-monthly to make budgeting easier for employees.
What is the Texas state tax rate for 2025?
Texas has no state income tax, so your wages are not subject to state tax withholding.
Are 1099 contractors subject to Texas taxes?
Independent contractors in Texas do not pay state income tax but must pay federal income tax and self-employment tax, which covers Social Security and Medicare.
What are the overtime laws in Texas?
Texas follows federal overtime rules under the Fair Labor Standards Act (FLSA). Nonexempt employees must receive 1.5 times their regular pay rate for any hours worked over 40 in a single workweek.
Disclaimer
The Texas Paycheck Calculator provides an estimate based on 2025 tax data and general payroll assumptions. Actual results may vary depending on your individual income, benefits, deductions, and personal tax situation. For specific financial or tax advice, consult a qualified professional.