Texas Tax Calculator
Print| Est. Federal Income Tax + FICA | $0.00 |
| Annual Net Take-Home Pay | $0.00 |
Texas is one of nine U.S. states with no state personal income tax, making it an attractive location for workers, businesses, and retirees. However, Texas workers are still subject to federal income tax withholding and FICA taxes (Social Security and Medicare), and residents face local sales taxes and property taxes. Our free Texas Tax Calculator calculates your exact net take-home pay in Texas and provides a complete breakdown of payroll deductions.
Whether you are relocating to Texas, negotiating a new salary offer in Austin, Dallas, or Houston, or calculating local sales tax, this guide covers everything you need to know.
How Texas Paychecks & Taxes Are Calculated
Because Texas levies zero state personal income tax, calculating your net paycheck involves subtracting federal and payroll tax withholdings from gross salary:
1. Texas Net Paycheck Formula:
Net Take-Home Pay = Gross Pay - Federal Income Tax Withholding - FICA Taxes - Voluntary Pre-Tax Deductions
Where State Income Tax Withholding is always: $0.00
2. FICA Tax Deductions Formula:
Federal FICA tax rates applied to employee gross pay:
Social Security Tax = Gross Wages × 6.2% (Up to annual wage cap)
Medicare Tax = Gross Wages × 1.45% (Plus 0.9% additional tax for high earners)
3. Texas Sales Tax Formula:
Texas state sales tax is 6.25%, with local cities and transit authorities adding up to 2.0% (max 8.25% combined):
Combined Texas Sales Tax Rate = 6.25% (State) + Local Tax Rate (0% to 2.0%)
Total Texas Sales Tax = Purchase Price × Combined Sales Tax Rate
Texas Paycheck Take-Home Reference Table
The table below presents estimated annual and monthly net take-home pay for single filers in Texas across various gross salary levels (assuming standard deduction and no pre-tax benefit deductions):
| Gross Annual Salary | Texas State Tax | Est. Federal + FICA Taxes | Annual Net Pay | Monthly Net Pay |
|---|---|---|---|---|
| $50,000 | $0.00 | $7,985 | $42,015 | $3,501.25 |
| $75,000 | $0.00 | $14,635 | $60,365 | $5,030.42 |
| $100,000 | $0.00 | $21,940 | $78,060 | $6,505.00 |
| $150,000 | $0.00 | $38,415 | $111,585 | $9,298.75 |
Step-by-Step Calculation Example
An employee in Houston earns an annual salary of $75,000 paid bi-weekly (26 pay periods per year).
Step 1: Calculate gross bi-weekly paycheck
Bi-Weekly Gross Pay = $75,000 / 26 = $2,884.62
Step 2: Calculate FICA deductions (6.2% Social Security + 1.45% Medicare)
Social Security (6.2%) = $2,884.62 × 0.062 = $178.85
Medicare (1.45%) = $2,884.62 × 0.0145 = $41.83
Step 3: Subtract federal withholding and confirm zero state tax
State Income Tax (Texas) = $0.00
Federal Income Tax Withholding = $342.15
Bi-Weekly Net Pay = $2,884.62 - ($178.85 + $41.83 + $342.15) = $2,321.79
Result Summary:
The employee receives a net take-home paycheck of $2,321.79 every two weeks in Texas.
Frequently Asked Questions (FAQ)
Does Texas have any state income tax?
No. Texas is one of nine U.S. states without an individual state income tax. The Texas Constitution prohibits the state legislature from imposing a personal income tax without voter approval.
How does Texas finance state services without an income tax?
Texas relies primarily on a 6.25% state sales tax (plus local sales taxes up to 2.0%), property taxes levied by local counties and school districts, and oil and gas severance taxes to fund public services.
If I work remotely for a company in another state while living in Texas, do I pay Texas state income tax?
No. As a physical resident working in Texas, you are not subject to Texas state income tax. However, depending on the state where your employer is headquartered, certain state “convenience of the employer” tax rules may apply.
What is the maximum combined sales tax rate in Texas cities?
The state of Texas imposes a 6.25% sales tax. Local jurisdictions (cities, counties, and transit authorities) can add up to an additional 2.0%, capping the maximum combined sales tax rate at 8.25% in cities like Austin, Dallas, Houston, and San Antonio.