Does Texas have a state income tax?

No. Texas is one of nine U.S. states with no state income tax — the Texas Constitution (Article 8, Section 24) effectively bars a personal income tax without statewide voter approval, which voters reinforced in 2019. That means $0 is withheld from your Texas paycheck for state income tax, and there is no state-level standard deduction, withholding form, or year-end state return to file. Texas funds its budget largely through sales tax and property tax instead. On a Texas paycheck the only mandatory federal payroll withholdings are federal income tax, Social Security, and Medicare.

How is my Texas paycheck calculated?

Your take-home pay starts with gross pay for the period and then subtracts, in order: pre-tax deductions (Traditional 401(k), HSA, FSA, and Section 125 health, dental, and vision premiums), federal income tax withholding based on your filing status and W-4, Social Security tax (6.2%), Medicare tax (1.45%), and finally any post-tax deductions such as Roth 401(k), union dues, or life insurance. Texas state income tax is $0, so nothing is removed at the state level. Net pay is whatever remains. This calculator annualizes your pay to apply the 2025 federal tax brackets, then divides the result back to your pay frequency.

What taxes are deducted from a Texas paycheck?

Three federal taxes: (1) Federal income tax, calculated on your taxable wages using the 2025 IRS brackets for your filing status after the standard deduction and any pre-tax deductions; (2) Social Security tax, a flat 6.2% on wages up to the 2025 wage base of $176,100; and (3) Medicare tax, a flat 1.45% on all wages plus an Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly). Social Security plus Medicare together are called FICA. There is no Texas state income tax, county income tax, or city income tax to withhold.

How much Social Security and Medicare tax do I pay?

As an employee you pay 6.2% of your wages toward Social Security, up to the 2025 wage base limit of $176,100 — so the maximum Social Security tax for 2025 is $10,918.20. You also pay 1.45% of all wages toward Medicare with no cap, plus an extra 0.9% Additional Medicare Tax on wages above $200,000 (single/head of household) or $250,000 (married filing jointly). Your employer matches the 6.2% and 1.45% but not the 0.9% surtax. Combined, the standard employee FICA rate is 7.65% of covered wages.

How are bonuses taxed in Texas?

Bonuses are 'supplemental wages' under IRS rules. When paid separately, employers usually withhold federal income tax at the flat supplemental rate of 22% (or 37% on amounts above $1 million in a year). Social Security (6.2%) and Medicare (1.45%) still apply, and Texas withholds $0 in state tax. So a typical Texas bonus has about 22% + 7.65% = 29.65% withheld before additional Medicare. Important: flat 22% withholding is not the final tax on the bonus — your true tax depends on your total annual income and marginal bracket, and any over- or under-withholding is reconciled when you file your federal return. The Bonus & Overtime tab estimates both the withholding and the take-home bonus.

FICA stands for the Federal Insurance Contributions Act, the law that funds Social Security and Medicare through payroll taxes. For employees, FICA is 7.65% of covered wages: 6.2% for Social Security (capped at the $176,100 wage base in 2025) and 1.45% for Medicare (uncapped). Employers pay a matching 7.65%. Self-employed people pay both halves — 15.3% — as self-employment tax. FICA is withheld from every paycheck regardless of state, which is why Texas employees still see Social Security and Medicare deductions even though there is no state income tax.

How do 401(k) contributions affect my taxes?

Traditional (pre-tax) 401(k) contributions reduce your federal taxable income dollar-for-dollar, lowering the federal income tax withheld from each paycheck — but they do NOT reduce Social Security or Medicare tax, which are still calculated on the full gross. Roth 401(k) contributions are made after tax, so they reduce neither federal income tax now nor FICA, but qualified withdrawals in retirement are tax-free. The 2025 employee contribution limit is $23,500 ($31,000 if you are age 50+ with catch-up). The Annual Income Planner tab models both Traditional and Roth contributions and shows the immediate tax savings of going pre-tax.

Why is my net pay lower than my salary?

Your gross salary is the figure before any taxes or deductions. Net pay (take-home) is what lands in your bank account after federal income tax, Social Security (6.2%), Medicare (1.45%), pre-tax deductions like 401(k) and health insurance, and any post-tax deductions like union dues. For a typical middle-income Texas worker, total deductions run roughly 20–30% of gross. Because Texas has no state income tax, Texans keep more of each paycheck than workers in high-tax states like California or New York earning the same salary.

How often should I update my W-4?

Review your Form W-4 whenever you have a major life or income change — getting married or divorced, having a child, taking a second job, your spouse starting or stopping work, or a large raise or bonus. The 2020+ W-4 no longer uses 'allowances'; instead you enter filing status, dependent credits, other income, deductions, and any extra withholding directly. If you consistently owe a large amount at tax time, add extra withholding; if you get a very large refund, you are over-withholding and could increase take-home pay. This calculator is W-4 compatible — enter dependents and additional withholding to mirror your form.

Does overtime get taxed at a higher rate?

Overtime pay itself is not taxed at a special higher rate — it is ordinary wages and is taxed the same as your regular pay. Under the Fair Labor Standards Act, non-exempt employees earn at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek, so a bigger paycheck can push that period's income into a higher withholding bracket, which sometimes makes it feel more heavily taxed. But your marginal federal bracket only applies to the dollars inside that bracket, and any over-withholding is refunded when you file. In Texas, overtime still has $0 state tax withheld. The Bonus & Overtime tab calculates overtime gross and its take-home value.

Texas Paycheck Calculator

Calculate your Texas take-home pay, federal taxes, Social Security, Medicare, bonuses, and paycheck deductions accurately.

Paycheck Calculator

Net pay after taxes

Income Information

Gross Payper pay period

Pay Frequency

Filing StatusW-4

Dependentsfor Child Tax Credit

Withholding uses the 2025 W-4 / IRS percentage method.

Pre-Tax Deductions · per paycheck

401(k)traditional

HSA

Health Insurance

Dental Insurance

Vision Insurance

FSA

Other Pre-Tax

Roth 401(k)post-tax

Post-Tax Deductions · per paycheck

Union Dues

Life Insurance

What Is a Texas Paycheck Calculator?

A Texas paycheck calculator estimates how much of your gross pay you actually take home after taxes and deductions. Because Texas is one of the nine U.S. states with no state income tax, your only mandatory payroll taxes are federal: federal income tax withholding, Social Security, and Medicare. This tool applies the 2025 IRS tax brackets and Federal Insurance Contributions Act (FICA) rates to turn your gross wage — hourly, salaried, or bonus — into a realistic net-pay figure, complete with a full breakdown of every dollar withheld.

Most online calculators stop at a single net-pay number. This one bundles five tools — a W-4-compatible paycheck calculator, an hourly calculator with overtime, a salary calculator, a bonus and overtime estimator, and an annual income planner — plus pre-tax and post-tax deduction handling, an effective tax-rate analyzer, retirement-impact modeling, and pay-frequency comparison. For converting between hourly and annual pay see our salary calculator, and to model retirement savings see the 401(k) calculator.

How Texas Payroll Taxes Work

Federal income tax

Withheld based on your Form W-4 — filing status, dependents, and any extra withholding. The IRS uses progressive 2025 brackets from 10% to 37%, applied to taxable income after the standard deduction and pre-tax deductions. This is usually the largest line on a Texas paycheck.

Social Security (6.2%)

A flat 6.2% of wages up to the 2025 wage base of $176,100, so the maximum employee Social Security tax for the year is $10,918.20. Your employer matches it. Earnings above the wage base are not subject to Social Security tax.

Medicare (1.45% + 0.9%)

A flat 1.45% of all wages with no cap, plus an Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly). Employers match the 1.45% but not the 0.9% surtax.

Texas state income tax ($0)

Texas charges no state income tax — the state constitution effectively bars one without statewide voter approval. There is no state withholding form and no state return. Texas funds itself mainly through sales tax and property tax instead.

Real-Life Texas Paycheck Examples

Texas employee earning $70,000

A single filer earning $70,000 has $55,000 of taxable income after the $15,000 standard deduction. Federal income tax is about $7,015, Social Security is $4,340, and Medicare is $1,015 — total federal taxes near $12,370. With $0 Texas state tax, annual take-home is around $57,600, an effective tax rate of about 17.7%.

Hourly worker earning $25/hour

At 40 hours a week, $25/hour is $1,000 gross weekly, or $52,000 a year. As a single filer, weekly Social Security is $62, Medicare $14.50, and federal withholding roughly $81 — leaving about $843 net per week. Working 5 overtime hours at 1.5× adds $187.50 of gross before taxes.

Employee receiving a $5,000 bonus

A separate $5,000 bonus is withheld at the flat 22% federal supplemental rate ($1,100) plus 6.2% Social Security ($310) and 1.45% Medicare ($72.50). Net bonus is about $3,517. In Texas, $0 is withheld for state tax. Remember the 22% is withholding, not the final tax.

High 401(k) contribution scenario

An $85,000 earner contributing $15,000 to a Traditional 401(k) cuts taxable income to roughly $55,000. At a 22% marginal rate, that saves about $3,300 in federal income tax this year — though Social Security and Medicare are still calculated on the full $85,000.

Figures are illustrative estimates for tax year 2025 and round for readability; your exact result depends on your W-4, deductions, and pay schedule.

Ways to Increase Your Texas Take-Home Pay

1
Fine-tune your W-4 withholding
If you get a large refund every year, you are over-withholding and giving the IRS an interest-free loan. Reducing extra withholding (or claiming dependents you qualify for) raises each paycheck. If you owe at tax time, add withholding to avoid penalties.
2
Maximize pre-tax retirement contributions
Traditional 401(k) and HSA contributions lower your federal taxable income. An HSA is uniquely powerful in Texas because it also avoids Social Security and Medicare tax when contributed through payroll.
3
Use a Section 125 cafeteria plan
Paying for health, dental, and vision insurance and FSA contributions pre-tax reduces both your federal income tax and your FICA tax, stretching every benefit dollar further.
4
Claim all dependent credits
Each qualifying child can reduce your federal tax by up to $2,000 through the Child Tax Credit. Entering dependents on your W-4 lowers withholding so you keep more during the year.
5
Mind the Social Security wage base
Once year-to-date wages pass $176,100 in 2025, Social Security tax stops for the rest of the year — high earners see a take-home bump in later paychecks.

Federal Tax, FICA & Deductions Explained

Federal income tax

The U.S. uses progressive brackets: only the income inside each bracket is taxed at that bracket's rate. Your marginal rate is the rate on your last dollar; your effective rate — total tax divided by gross income — is always lower. The standard deduction ($15,000 single, $30,000 married filing jointly in 2025) is subtracted before brackets apply.

Social Security tax

Funds retirement, disability, and survivor benefits. Employees pay 6.2% up to the annual wage base ($176,100 in 2025); employers match it. Self-employed Texans pay both halves as part of the 15.3% self-employment tax. Above the wage base, no further Social Security tax is owed.

Medicare tax

Funds hospital insurance for people 65+. Employees pay 1.45% on all wages with no cap, and an extra 0.9% Additional Medicare Tax kicks in above $200,000 (single) or $250,000 (joint). There is no employer match on the 0.9% surtax.

Pre-tax vs post-tax deductions

Pre-tax deductions (Traditional 401(k), HSA, FSA, Section 125 insurance premiums) come out before taxes are calculated, lowering taxable income. Post-tax deductions (Roth 401(k), union dues, after-tax life insurance) come out after taxes and don't reduce your tax bill.

Understanding W-4 withholding

The 2020+ Form W-4 replaced 'allowances' with direct entries: filing status, dependent credits, other income, deductions, and extra withholding on line 4(c). Accurate entries mean your paycheck withholding closely matches your actual tax, minimizing surprises at filing time.

Hourly vs salary pay

Hourly workers earn per hour and qualify for overtime (1.5× beyond 40 hours/week under the FLSA). Salaried workers earn a fixed annual amount split across pay periods; many are exempt from overtime. Both are taxed identically — only the way gross pay is calculated differs.

Why Texas Has No State Income Tax — and Texas Payroll Facts

A constitutional barrier

Texas has never had a personal income tax. In 2019, voters approved Proposition 4, amending the constitution to require a statewide vote before any personal income tax could be enacted — making one highly unlikely.

Funded by sales & property tax

Texas raises revenue mainly through a 6.25% state sales tax (up to 8.25% with local add-ons) and some of the highest property taxes in the country. The trade-off for no income tax is higher consumption and property taxes.

How bonuses are taxed

Bonuses are 'supplemental wages.' Paid separately, they are usually withheld at a flat 22% federal rate (37% above $1M per year), plus FICA. The flat rate is only withholding — your real tax is settled on your return, and Texas withholds $0 state tax.

Does overtime get taxed more?

No. Overtime is ordinary income taxed at your normal marginal rate. A bigger paycheck can land in a higher withholding bracket for that period, but any over-withholding is refunded at tax time. Texas still withholds $0 state tax on overtime.

The Core Paycheck Formulas

Every figure in this calculator comes from the IRS percentage method and the FICA statute. These are the same formulas employers use to run Texas payroll.

Taxable Income

Taxable = Gross − Pre-Tax Deductions − Standard Deduction

Pre-tax 401(k), HSA, FSA, and Section 125 premiums reduce the income that federal tax is calculated on.

Federal Income Tax

Tax = Σ (bracket slice × bracket rate) − Credits

Progressive 2025 brackets from 10% to 37%, minus the Child Tax Credit ($2,000 per dependent).

FICA

FICA = min(Wage, 176,100) × 6.2% + Wage × 1.45%

Social Security caps at the wage base; Medicare has no cap, plus 0.9% on high earners.

Net Pay

Net = Gross − Federal − FICA − $0 State − Deductions

Texas state income tax is always $0, so it never reduces a Texas paycheck.

Common Texas Paycheck Mistakes

Expecting state tax to be withheld

Texas withholds $0 state income tax. If you moved from a state with income tax, your Texas net pay will be noticeably higher for the same salary — don't mistake that for a payroll error.

Confusing marginal and effective rate

Being 'in the 22% bracket' doesn't mean 22% of all your income is taxed. Only the dollars inside that bracket are. Your effective rate — what you actually pay overall — is lower.

Thinking the 22% bonus rate is final

The flat 22% on bonuses is withholding, not your true tax. Depending on your total income you may get some back at filing, or owe a little more.

Forgetting FICA on pre-tax 401(k)

Traditional 401(k) cuts your income tax but not Social Security or Medicare — those are still calculated on your full gross. Only HSA, FSA, and Section 125 premiums reduce FICA.

Ignoring the Social Security wage cap

High earners who only look at one early paycheck overestimate their annual tax. Social Security stops once wages cross $176,100 in 2025, raising later paychecks.

Not updating the W-4 after life changes

Marriage, a new child, a second job, or a big raise all change your correct withholding. An outdated W-4 leads to a surprise bill or an oversized refund.

Built for Texas employees, hourly workers, salaried professionals, and job seekers comparing offers.

Calculations use the 2025 federal tax brackets, the $176,100 Social Security wage base, and standard FICA rates, cross-checked against IRS and SSA guidance — see our editorial policy. Tax laws, withholding rules, Social Security limits, and Medicare rates change over time. Results are estimates and should not replace professional tax, payroll, or financial advice.

Frequently Asked Questions

No. Texas is one of nine states with no state income tax, so $0 is withheld from your paycheck at the state level. The only mandatory withholdings on a Texas paycheck are federal income tax, Social Security, and Medicare.

Gross pay minus pre-tax deductions (401(k), HSA, FSA, insurance), then minus federal income tax, Social Security (6.2%), and Medicare (1.45%), then minus any post-tax deductions. Texas state income tax is $0. Whatever remains is your net take-home pay.

Three federal taxes only: federal income tax (based on your W-4 and 2025 brackets), Social Security (6.2% up to the $176,100 wage base), and Medicare (1.45% on all wages, plus 0.9% above high-income thresholds). There is no Texas state, county, or city income tax.

Employees pay 6.2% of wages up to the 2025 Social Security wage base of $176,100, for a maximum of $10,918.20 per year. Your employer matches the 6.2%. Earnings above the wage base are not subject to Social Security tax.

Bonuses are supplemental wages. When paid separately, employers usually withhold a flat 22% for federal income tax (37% above $1 million), plus Social Security and Medicare. Texas withholds $0. The flat 22% is withholding, not the final tax — your true tax is reconciled when you file.

FICA (Federal Insurance Contributions Act) is the payroll tax that funds Social Security and Medicare. For employees it totals 7.65% of covered wages — 6.2% Social Security plus 1.45% Medicare. Employers match it; self-employed people pay both halves (15.3%).

Traditional 401(k) contributions reduce your federal taxable income, lowering income tax withheld — but not Social Security or Medicare, which are calculated on full gross pay. Roth 401(k) contributions are after-tax and reduce neither now, but grow tax-free. The 2025 limit is $23,500 ($31,000 with age-50 catch-up).

Your salary is gross pay before deductions. Net (take-home) pay is what remains after federal income tax, Social Security, Medicare, and any pre-tax and post-tax deductions. For typical Texas workers, total deductions run about 20–30% of gross — though no state income tax means Texans keep more than workers in high-tax states.

Update your W-4 after any major change — marriage, divorce, a new child, a second job, a spouse's job change, or a large raise. If you consistently owe at tax time, add extra withholding; if you get a very large refund, you're over-withholding and could increase your take-home pay.

Overtime is ordinary income taxed at your normal marginal rate, not a special higher rate. A larger paycheck may push that period into a higher withholding bracket, but any over-withholding is refunded at filing. In Texas, overtime still has $0 state tax withheld.

Texas Paycheck Calculator

Paycheck Calculator

What Is a Texas Paycheck Calculator?

How Texas Payroll Taxes Work

Federal income tax

Social Security (6.2%)

Medicare (1.45% + 0.9%)

Texas state income tax ($0)

Real-Life Texas Paycheck Examples

Texas employee earning $70,000

Hourly worker earning $25/hour

Employee receiving a $5,000 bonus

High 401(k) contribution scenario

Ways to Increase Your Texas Take-Home Pay

Federal Tax, FICA & Deductions Explained

Federal income tax

Social Security tax

Medicare tax

Pre-tax vs post-tax deductions

Understanding W-4 withholding

Hourly vs salary pay

Why Texas Has No State Income Tax — and Texas Payroll Facts

A constitutional barrier

Funded by sales & property tax

How bonuses are taxed

Does overtime get taxed more?

The Core Paycheck Formulas

Common Texas Paycheck Mistakes

Expecting state tax to be withheld

Confusing marginal and effective rate

Thinking the 22% bonus rate is final

Forgetting FICA on pre-tax 401(k)

Ignoring the Social Security wage cap

Not updating the W-4 after life changes

Frequently Asked Questions

Does Texas have a state income tax?

How is my Texas paycheck calculated?

What taxes are deducted from a Texas paycheck?

How much Social Security tax do I pay?

How are bonuses taxed?

What is FICA?

How do 401(k) contributions affect taxes?

Why is my net pay lower than my salary?

How often should I update my W-4?

Does overtime affect taxes?

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