Texas payroll taxes

State income tax: Texas has no state individual income tax; there is no Texas state wage withholding.
Local wage tax: None. Cities and counties do not levy employee wage income taxes.
Unemployment Insurance (UI/SUI): Employer-paid only; Texas employees do not pay UI from wages.
Other state programs: No statewide employee-paid disability or paid family leave payroll taxes.
FICA (federal): Social Security and Medicare—see FICA details below.
FIT (federal income tax): Withheld under IRS rules based on your federal Form W-4.
Pre-tax deductions: Traditional 401(k), HSA/FSA, and Section 125 premiums can reduce FIT-taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, charitable giving, and other after-tax items reduce net pay.

How Your Texas Paycheck Works

Start with gross pay for the period (salary or hourly × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA: Social Security up to the federal wage base; Medicare on all wages; Additional Medicare for high earners.
Compute federal withholding using IRS methods and your W-4 elections.
No state or local wage tax in Texas; the employer separately pays UI and other employer payroll taxes.
Subtract post-tax deductions (Roth, garnishments, etc.) to arrive at net pay.

Texas Income unemployment tax rate — 10 Years Data

Employees do not pay Texas Unemployment Insurance from wages. Employers contribute on a taxable wage base at assigned new-employer or experience rates. Values below are illustrative references; confirm your annual rate notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$9,000	~2.7%	~0.1%–7.5%
2017	0%	No	$9,000	~2.7%	~0.1%–7.6%
2018	0%	No	$9,000	~2.7%	~0.1%–7.8%
2019	0%	No	$9,000	~2.7%	~0.1%–7.9%
2020	0%	No	$9,000	~2.7%	~0.1%–8.1%
2021	0%	No	$9,000	~2.7%	~0.1%–8.3%
2022	0%	No	$9,000	~2.7%	~0.1%–8.5%
2023	0%	No	$9,000	~2.7%	~0.1%–8.7%
2024	0%	No	$9,000	~2.7%	~0.1%–8.9%
2025	0%	No	$9,000	~2.7%	~0.1%–9.1%

Texas salary threshold

Texas follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is owed after 40 hours in a workweek.

Median Household Income — Texas (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$56,000
2016	$58,000
2017	$60,600
2018	$63,000
2019	$66,000
2020	$68,200
2021	$73,500
2022	$79,000
2023	$82,500
2024	$84,300

Texas Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal annual wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Texas has no local wage income taxes on employees. Paychecks include federal withholding, FICA, and benefit or court-ordered deductions. Cities and counties fund services via sales, property, and business taxes collected outside payroll. Because there’s no local wage tax, your standard withholding remains unchanged when moving between Texas municipalities.

Local income tax table (employee wage tax)

City/County	Local Wage Tax	Notes
Statewide (Texas)	None	No municipal/county percentage-of-wages tax on employees

Texas Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily OT rule).
Minimum wage: Texas uses the federal minimum wage for most covered employers.
Pay frequency: Employers must establish regular paydays (weekly/biweekly/semimonthly common) and pay wages on time; final-pay deadlines apply at separation.
Breaks/meals: Follow federal standards; minors and certain industries have additional protections.

Additional Texas forms

Federal Form W-4 — Controls federal withholding (no Texas state W-4 for wages).
UI Employer Registration & Rate Notice — Texas Workforce Commission account setup and SUI rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — Wage/hour, unemployment, safety, and federal postings.

FAQs — Texas Salary Paycheck Calculator

How do I use a Texas Salary Paycheck Calculator to estimate net pay?

Enter gross pay and frequency, your W-4 details, and any pre-/post-tax deductions. The calculator applies FICA and federal withholding (no Texas state/local wage tax) to estimate per-pay and annual take-home.

Why doesn’t my Texas paycheck show state income tax?

Texas has no state individual income tax on wages, so there is no state withholding line. You’ll still see FICA and federal withholding.

Does any Texas city have a local wage tax?

No. Texas municipalities and counties do not levy wage-based income taxes on employees.

Do Texas employees pay unemployment insurance from wages?

No. Texas UI is employer-funded. Employees will not see a state UI deduction on their pay stubs.

Which form controls my paycheck withholding if there’s no state tax?

Your federal Form W-4 controls federal withholding. Texas does not have a state W-4 for wage income.

How are bonuses and commissions taxed in Texas?

They’re subject to federal supplemental withholding methods and FICA. There is no Texas state or local wage tax. Enter bonuses as supplemental pay in the calculator.

Can I add an extra withholding amount even without state tax?

Yes—on the federal side. You can request an additional federal dollar amount per paycheck on Form W-4; preview the impact in the calculator.

How do pre-tax benefits (401(k), HSA, FSA) affect my paycheck?

Pre-tax benefits reduce federal taxable wages (and sometimes FICA), which increases take-home. They don’t affect Texas state withholding because none exists for wages.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are post-tax and do not reduce payroll taxable wages today. Enter them as post-tax deductions.

How do I enter overtime and shift differentials?

Add overtime hours and premium rates; the calculator includes them in gross pay and recomputes FICA and federal withholding for the period.

What pay frequency should I select?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages and withholdings per period and annualizes statutory caps like Social Security.

Why did my net pay change mid-year without a raise?

You may have reached the Social Security wage base; Social Security stops for the rest of the year while Medicare continues, increasing take-home pay.

How are tips handled for Texas payroll?

Reported tips are taxable for FIT and FICA. Include tips to avoid under-withholding at the federal level.

Does Additional Medicare tax apply in Texas?

Yes—federally. Employees pay an extra 0.9% above $200,000 in wages; employers do not match it. The calculator adds it automatically when applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA for that job in your estimate.

How do PTO payouts get taxed?

PTO cash-outs are taxable wages for FIT and FICA (no Texas wage tax). If paid separately, employers may use federal supplemental methods—model as supplemental wages.

What if I live in another state and work in Texas?

Texas won’t withhold state wage tax. Your resident state may tax your income and require returns; check reciprocity/credit rules and model both scenarios.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after federal taxes. Federal/state limits and employer processing timelines apply.

How can I avoid a large balance due at year-end?

Increase federal withholding via an extra per-pay amount on W-4, adjust pre-tax benefits, or make estimated payments. Use the calculator to preview results first.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run traditional (pre-tax) and Roth (post-tax) scenarios to see immediate take-home differences and long-term implications.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid checks and new rate for remaining periods—then combine to project full-year taxes and net pay.

Texas Salary Paycheck Calculator