Texas paycheck calculator
Texas does not tax wages at all. The state constitution bars the legislature from taxing individuals' net income, so your paycheck carries federal income tax, Social Security and Medicare, and nothing for the state. There is no Texas withholding form to fill in, and no Texas city or county takes a cut of your pay either.
Take-home per paycheck
$2,369
- Take-home per year
- $61,593
- Total taxes per year
- $13,408
- Effective tax rate
- 17.9%
- Marginal tax rate
- 29.6%
Take-home per paycheck: $2,369 every 2 weeks
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal income tax | −$295 | −$7,670 |
| Social Security | −$179 | −$4,650 |
| Medicare | −$42 | −$1,088 |
| Take-home pay | $2,369 | $61,593 |
- Take-home pay$61,59382%
- Federal income tax$7,67010%
- Social Security & Medicare$5,7388%
Texas has no wage income tax
- None
- Texas does not tax wages or any other individual income; the state constitution prohibits a personal income tax.
- None
- Texas has no state payroll tax withheld from employees.
- None
- Texas cities and counties do not tax wages, so there is no local income tax to withhold. Texas also has no state disability or paid-leave payroll deduction, and state unemployment tax is paid only by employers (Texas Labor Code Sec. 207.073 bars deducting it from wages).
- None
- No Texas income tax is withheld from bonuses, commissions or other supplemental pay.
$48,620 in Texas
$48,620 is the median annual wage in Texas (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $41,246 a year, or $1,586 per paycheck.
| Line | Every 2 weeks | Per year |
|---|---|---|
| Gross pay | $1,870 | $48,620 |
| Federal income tax | -$141 | -$3,654 |
| Social Security | -$116 | -$3,014 |
| Medicare | -$27 | -$705 |
| Take-home pay | $1,586 | $41,246 |
Why there is no Texas withholding
Article 8, Section 24-a of the Texas Constitution says the legislature may not impose a tax on the net incomes of individuals, including a person's share of partnership income. Because of that, employers in Texas withhold only federal taxes from your pay.
You only need the federal Form W-4. If you live in Texas but work in another state, that state may still tax the wages you earn there, and your employer will follow that state's rules.
No local income tax in Texas cities
Houston, Dallas, San Antonio, Austin and every other Texas city and county leave wages alone. Local governments raise money mainly through property tax and local sales tax instead.
The Comptroller notes that Texas has no state property tax: appraisal and tax rates are set by local taxing units such as school districts, cities and counties.
No state payroll deductions for employees
Texas has no state disability insurance, paid family leave premium or employee unemployment tax. Unemployment tax is paid by employers only, and Section 207.073 of the Texas Labor Code makes it illegal for an employer to take a deduction from your wages to pay for it.
That means the only taxes on a Texas paycheck are federal: income tax withholding, Social Security, Medicare and, on high pay, Additional Medicare Tax.
What Texas taxes instead
The state relies on sales and use tax. The Comptroller collects a statewide rate on most retail sales, leases and rentals of goods and some services, and cities, counties, transit authorities and special districts can add local sales tax on top.
Businesses pay the Texas franchise tax, which is based on business revenue rather than personal income. Entities with revenue at or below the annual no-tax-due threshold owe no franchise tax.
What changed recently
- 2025: Voters added Section 24-b to Article 8 of the Texas Constitution (adopted November 4, 2025), which prohibits the state from taxing individuals' realized or unrealized capital gains. It sits alongside the existing ban on a personal income tax. Source
- 2026: From January 1, 2026 the franchise tax no-tax-due threshold for businesses went up, so more small businesses owe no franchise tax. Wage earners are not affected: there is still no tax on wages. Source
Questions people ask
Does Texas have a state income tax?
No. The Texas Constitution (Article 8, Section 24-a) prohibits the legislature from taxing individuals' net incomes, and the Comptroller states plainly that Texas has no state income tax. Changing that would take a constitutional amendment approved by voters.
What taxes come out of a paycheck in Texas?
Only federal ones: federal income tax withholding based on your W-4, Social Security, Medicare, and Additional Medicare Tax once your wages pass the federal threshold. Anything else, such as health premiums or 401(k) contributions, is a benefit deduction, not a Texas tax.
Do Houston, Dallas or Austin have a city income tax?
No. No Texas city or county taxes wages. Local governments are funded mostly by property taxes and local sales taxes.
Do Texas employees pay state unemployment tax?
No. State unemployment tax is paid only by employers, and the Texas Labor Code (Section 207.073) forbids employers from deducting it from wages, directly or indirectly.
Is my bonus taxed by Texas?
No. With no state income tax, Texas withholds nothing from bonuses, commissions or other supplemental pay. Your employer will still withhold federal income tax, Social Security and Medicare on the bonus.
How does Texas pay for services without an income tax?
Mainly through sales and use tax collected by the Comptroller, the franchise tax on businesses, and other state taxes and fees. Schools, cities and counties rely heavily on local property tax, which is set locally; Texas has no state property tax.
Sources
- Texas Constitution, Article 8 (Taxation and Revenue), Sec. 24-a and 24-b · retrieved 2026-10-16
- Fiscal Notes: Texas is open for small business (2025) · retrieved 2026-10-16
- Sales and Use Tax · retrieved 2026-10-16
- Property Tax · retrieved 2026-10-16
- Texas Labor Code, Chapter 207, Sec. 207.073 (Prohibited Deduction from Wages) · retrieved 2026-10-16
- Publication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
- Publication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
- Rev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
- Form W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
- Publication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
- Form 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
- Schedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
- Schedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
- Working Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
- Working Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
- Child Tax Credit · retrieved 2026-10-16
- IR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
- Rev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
- BLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16