Texas Payroll Tax Calculator 2026
Calculate your exact Texas take-home pay. Texas has no state income tax — Includes federal taxes and FICA.
| Deduction | Per Paycheck | Annual |
|---|---|---|
| Gross Pay | — | — |
| Federal Income Tax | — | — |
| No State Tax | $0 | $0 |
| Social Security (6.2%) | — | — |
| Medicare (1.45%) | — | — |
| Total Deductions | — | — |
| Net Take-Home | — | — |
Texas Payroll Tax Calculator 2026
Texas has no state income tax on wages or personal income. The Texas constitution prohibits an individual income tax without voter approval. Texas funds state services primarily through property taxes (among the highest in the nation at 1.7%–2.0% average effective rate) and sales tax (6.25% state + up to 2% local).
Because Texas has no state income tax, your full paycheck is only subject to federal income tax withholding and FICA (Social Security + Medicare). This can result in take-home pay that is $200–$500/month higher than equivalent earnings in high-tax states like California or New York.
All Payroll Deductions in Texas (2026)
- Federal income tax: 10%–37% (2026 IRS brackets; single filer pays 22% bracket above ~$50,000 taxable income)
- Texas state income tax: No state income tax
- Social Security: 6.2% on wages up to $176,100 (2026 wage base)
- Medicare: 1.45% on all wages (no cap); additional 0.9% on wages over $200,000
- Payroll Taxes Guide
- Overtime Rules
- Tax Withholding Guide
Notable Texas Tax Features
While Texas has no income tax, it does impose a franchise tax on businesses (0.375%–0.75% of revenue for most businesses). This is a business cost, not a personal income tax. Texas is the second most populous state and one of the top destinations for business relocation from California.
Texas vs Neighboring States
For a Texas resident earning $80,000, the income tax savings vs. California are approximately $5,500–$6,500/year. However, Texas property tax on the same home typically costs $3,000–$5,000 more per year than in California, partially offsetting the income tax savings.
About This Calculator
This Texas payroll tax calculator uses 2026 federal and state rates from IRS Publication 15-T and the Texas Department of Revenue. Results are estimates based on the annualized withholding method. Actual withholding may differ based on W-4 elections, local income taxes, itemized deductions, tax credits, and pre-tax benefits. Always verify with your payroll provider or a tax professional for official payroll purposes.