Texas Paycheck Calculator 2026

How Texas Taxes Affect Your Paycheck

Texas is one of the most paycheck-friendly states because it has no state income tax. That means your gross pay is not reduced by state withholding, and your net pay is generally higher than in high-tax states at the same salary.

There are also no local city or county income taxes in Texas. Most paycheck deductions are therefore federal: federal income tax, Social Security, and Medicare. Employer-side taxes such as unemployment insurance are generally not withheld from employee wages.

Because there is no state income tax, Texas workers often focus on optimizing pre-tax benefits like 401(k), HSA, and traditional health premiums to reduce federal taxable income.

Texas Income Tax Brackets (2026)

Great news — Texas has no state income tax! Your paycheck is only subject to federal income tax and FICA taxes (Social Security and Medicare).

Other Texas Payroll Taxes

Texas does not levy employee state payroll income taxes. State unemployment tax is employer-paid, and there is no statewide local income tax withholding for employees.

Federal Taxes That Apply in Texas

In addition to no state income tax, your Texas paycheck is subject to federal taxes:

• Federal Income Tax: 10% to 37% based on your income and filing status
• Social Security Tax: 6.2% on income up to $176,100 (2026)
• Medicare Tax: 1.45% on all income, plus 0.9% additional Medicare tax on income over $200,000