Texas Paycheck Calculator

Texas Income Tax Rate

Texas does not tax wage and salary income. Your paycheck’s statutory layers are federal income tax and FICA, plus any pre-tax and post-tax deductions you elect. Payroll begins with gross pay, subtracts pre-tax benefits traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter plans then calculates federal withholding using your Form W-4 and pay frequency. Supplemental wages (bonuses, commissions) follow federal percentage or aggregate methods. Because Texas has no state or municipal wage tax, your net pay is shaped most by federal brackets, Social Security/Medicare thresholds, and your benefit strategy. The table confirms 0% Texas wage income tax across the last decade.

Texas Median Household Income

Texas median household income has climbed steadily, powered by growth in energy, technology, healthcare, logistics, advanced manufacturing, professional services, and higher education. Gains are broad, with notable momentum around Austin, Dallas–Fort Worth, Houston, San Antonio, and fast-growing suburban corridors. The figures below are nominal, directional benchmarks for budgeting and offer comparisons. For purchasing power, consider “real” (inflation-adjusted) dollars and local costs housing, transportation, childcare, and insurance vary widely by metro and county. Household size and employer benefits (health coverage, retirement match, HSA contributions) materially shape take-home value and savings capacity across Texas regions.

Texas Federal Insurance Contributions Act (FICA)

FICA applies uniformly in Texas. Employees pay 6.2% Social Security on wages up to the federal wage base (matched by employers) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match the surtax. Traditional 401(k) reduces income-tax wages but not FICA; Section 125 health premiums typically reduce both income-tax and FICA wages. Texas pay stubs usually show Social Security, Medicare, federal withholding, pre-/post-tax deductions, and year-to-date totals useful for verifying accuracy after raises, life events, or benefit changes.

Texas Number of Cities with Local Income Taxes

Texas municipalities do not levy employee-paid local wage income taxes. Withholding generally includes federal income tax and FICA only; local business taxes do not reduce employees’ paychecks directly.

How Your Texas Paycheck Works

Your paycheck starts with gross wages for the period. Payroll subtracts pre-tax benefits traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits to reach taxable wages. Withholding then includes federal income tax (per W-4) and FICA (Social Security and Medicare). Because there’s no state or city wage tax, your net pay depends heavily on federal bracket placement, FICA thresholds, and your benefits mix. Post-tax items Roth 401(k), garnishments, union dues, charitable gifts come after taxes and don’t reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not annual tax owed.

Texas Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Texas follows FLSA most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply based on duties and salary thresholds.
Pay frequency: Employers must maintain regular, published paydays and pay on consistent intervals; biweekly or semimonthly schedules are common. State rules address timely final pay and itemized wage statements review employer policy and any agreements for specifics.

Texas FAQs

How do I use the Texas Paycheck Calculator?

Enter gross pay, schedule, W-4 details, and benefits to estimate federal withholding, FICA, deductions, and net pay.

Does Texas tax wage income?

No. Texas has no state income tax on wages.

Do any Texas cities tax employee wages?

No. Cities and counties do not levy percent-of-wages income taxes on employees.

What taxes appear on a Texas pay stub?

Federal income tax, Social Security, Medicare, and pre-/post-tax deductions no state or city wage tax lines.

How are bonuses withheld in Texas?

Employers use federal percentage or aggregate supplemental methods; no extra state wage tax applies.

Do 401(k) and HSA contributions reduce my taxes?

They reduce income-tax wages and, for Section 125 health premiums, often FICA as well improving take-home pay.

Are tips taxable in Texas?

Yes. Reported tips are subject to federal income tax and FICA and must be included in payroll.

How often must I be paid in Texas?

Employers pay on regular, published schedules commonly biweekly or semimonthly subject to wage-payment rules.

Why did my withholding change midyear?

Updated W-4, raises, overtime, or benefit elections can shift brackets and per-check withholding amounts.