Texas paycheck taxes at a glance
| Income tax on wages | None |
|---|---|
| Minimum wage (2026) | $7.25 an hour (Texas adopts the federal minimum wage) |
Example: a $82,600 salary in Texas
The median household income in Texas is about $82,625 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,176.92 |
|---|---|
| Federal income tax | −$359.31 |
| Social Security | −$196.97 |
| Medicare | −$46.07 |
| Take-home pay | $2,574.58 |
That's $66,939 a year in take-home pay, or 19% of gross pay going to taxes.
Take-home pay by salary in Texas
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State payroll | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,320.00 | $34,320 | $0 | 14.2% |
| $60,000 | $1,938.08 | $50,390 | $0 | 16% |
| $80,000 | $2,504.23 | $65,110 | $0 | 18.6% |
| $100,000 | $3,045.38 | $79,180 | $0 | 20.8% |
| $150,000 | $4,376.58 | $113,791 | $0 | 24.1% |
| $200,000 | $5,727.96 | $148,927 | $0 | 25.5% |
Texas pay rules worth knowing
- Employees who are exempt from federal overtime rules must be paid at least once a month. Everyone else must be paid at least twice a month, in pay periods of roughly equal length.
- If you're fired or laid off, your final pay is due within six calendar days. If you quit, it's due on the next regularly scheduled payday.
What comes out of a Texas paycheck
A Texas pay stub has three tax lines, and all of them are federal:
- Federal income tax, based on your Form W-4 and the IRS withholding tables.
- Social Security, 6.2% of wages up to the 2026 wage base of $184,500.
- Medicare, 1.45% of all wages, plus an extra 0.9% on wages over $200,000 in the year.
That’s the full list of taxes. Texas has no state income tax, no state disability insurance, no paid family leave premium and no city or county income tax. The state unemployment tax is real, but your employer pays it; it never appears as a deduction on your stub. That’s why the state column in the take-home table above shows $0 at every salary.
Anything else on your stub is a benefit or a voluntary deduction: health insurance, a 401(k), an HSA, union dues, or a wage garnishment.
Where Texas collects instead
Texas funds state and local government mainly through sales and property taxes, so a bigger paycheck doesn’t mean you pay nothing to the state.
Sales tax. The state charges 6.25% on most goods and some services, and local governments can add up to 2%, for a maximum combined rate of 8.25%. On a household budget, that’s a tax you pay with after-tax money every time you shop. The sales tax calculator shows what a given rate adds to a purchase.
Property tax. Texas has no state property tax. Counties, cities, school districts and special districts each set their own rates, so two homes of the same value can carry very different bills a few miles apart. Homeowners pay this directly. Renters pay it indirectly through rent. If you’re weighing a move, look up the combined rate for the specific address. The statewide picture won’t tell you much.
Moving to Texas from a state with income tax
Your first Texas paycheck should stop state withholding automatically once your employer has your Texas address and work location. Check the stub to make sure it has. A few things are worth knowing:
- Your old state can still tax part of the year. Income you earned while living or working there is normally reported on a part-year resident return for that state, filed the following spring.
- Remote work for an out-of-state employer can be different. If your employer keeps withholding for another state after you move, ask payroll which rule it’s applying before you assume it’s a mistake.
- Compare the whole budget, not just take-home pay. Run your salary through the calculator above for both states, then add the difference in housing costs, property tax and sales tax. The salary calculator converts the result to hourly, monthly or weekly figures.
Making the most of a Texas paycheck
Without a state income tax, a traditional 401(k) contribution saves you federal income tax only. A Roth contribution gives up that federal deduction now in exchange for tax-free withdrawals later, and in Texas there’s no state deduction to give up on top of it. That makes the Roth trade-off a little more favorable here than in a high-tax state. The 401(k) calculator shows how contributions grow, and the income tax calculator checks whether your federal withholding is on track for the year.
Estimates only. Your employer’s payroll system and your W-4 determine your actual paycheck.
Sources
- Texas Workforce Commission: Texas Minimum Wage Law
- Texas Workforce Commission: Final Pay
- U.S. Department of Labor: State Payday Requirements
- Texas Workforce Commission: Unemployment Tax
- Texas Comptroller: Sales and Use Tax
- Texas Comptroller: Property Tax
- IRS Publication 15 (2026): Social Security and Medicare withholding
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- taxfoundation.org
- IRS Publication 15-T (federal withholding)
Frequently asked questions
Does Texas have a state income tax?
No. Texas doesn't tax wages or other personal income, so employers withhold no state income tax and there's no state withholding form to fill out. You only complete the federal Form W-4.
Does Texas take unemployment tax out of my paycheck?
No. Texas unemployment tax is paid by employers, not deducted from wages. The Texas Workforce Commission describes it as an employer-paid tax that funds state unemployment benefits.
How much is sales tax in Texas?
The state rate is 6.25%, and local taxing jurisdictions can add up to 2% more, for a maximum combined rate of 8.25%. The rate you pay depends on where the sale takes place.
Why do I take home more in Texas than in California on the same salary?
California withholds state income tax and a 1.3% disability insurance (SDI) contribution from every paycheck, and Texas withholds neither. Federal income tax, Social Security and Medicare are the same in both states.
Who sets property tax rates in Texas?
Local taxing units such as counties, cities, school districts and special districts. Texas has no state property tax, and the Comptroller doesn't set rates or collect property tax.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.