🤠 Texas Paycheck Calculator

Texas has no state income tax — your paycheck only gets hit by federal tax and FICA. See exactly what lands in your account each pay period.

🤠 Texas Paycheck Calculator — Federal tax + FICA only. Texas has NO state income tax, which is why net pay is materially higher than California or New York for the same gross salary.

Enter Your Details

Annual Gross Salary ($)

Filing Status

401(k) Contribution (%) reduces federal tax, not FICA

HSA Annual Contribution ($, reduces both)

Pay Period

Texas Paycheck Breakdown

Net Pay (per period)

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Take-home in your paycheck

Net Annual

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After all federal + FICA

Effective Tax Rate

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All tax ÷ gross

State Tax

Texas — no state income tax 🎉

Federal Income Tax

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Progressive 10–37% brackets

FICA (Social Security + Medicare)

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6.2% SS + 1.45% Medicare

Pre-tax 401(k)

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Reduces federal taxable wages

Pre-tax HSA

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Reduces federal AND FICA

Methodology & Sources

2026 IRS federal brackets, $15,000 standard deduction (single) / $30,000 (married). FICA: 6.2% Social Security on wages up to $176,100, 1.45% Medicare on all wages, plus 0.9% additional Medicare above $200,000 single / $250,000 married. Texas-specific: no state income tax, no state disability insurance, no franchise tax on personal income. Property tax (not modelled here) is the offsetting cost — Texas has the 6th highest effective property-tax rate in the US.

2026 IRS brackets: IRS Publication 17
FICA wage base: SSA — Contribution + Benefit Base
Texas tax (none): Texas Comptroller — Taxes Overview

Last verified: May 2026.

Frequently Asked Questions

Why does Texas have no state income tax?

Texas funds state government primarily through sales tax (6.25% state + up to 2% local), property tax (6th highest in the US, averaging 1.6–1.8% of assessed value), and severance taxes on oil and gas extraction. The Texas constitution prohibits a personal income tax — implementing one would require a constitutional amendment ratified by two-thirds of the Legislature plus a majority of voters. The trade-off: lower income-tax burden but higher property + sales tax than most states.

What's the total tax burden in Texas?

For someone earning $80,000: federal income tax ~$9,200, FICA ~$6,100, state $0 — total ~$15,300 (19% effective rate). Compared to California at the same gross ($19,700 total, 24.6% effective), Texas saves you ~$4,400/year. Property tax can claw that back: a $400k home at 1.7% property tax = $6,800/year, eating most of the income-tax savings for middle-income homeowners. Renters keep the full income-tax win.

Does Texas have a payroll tax?

Yes — Texas employers pay a state unemployment insurance (SUI) tax that ranges from 0.31% to 6.31% on the first $9,000 of each employee's wages. This is paid by the EMPLOYER, not the employee, so it doesn't appear on your paycheck. Texas also has the Reemployment & Employment Service tax (~0.13%) and Smart Jobs Fund assessment, both employer-paid. From the employee's perspective, Texas paychecks have no state withholding beyond federal + FICA.

Should I max out 401(k) or HSA first in Texas?

HSA usually wins on a dollar-for-dollar basis because it's TRIPLE tax-advantaged: pre-tax going in, tax-free growth, tax-free out for qualified medical expenses. HSA contributions also reduce both federal AND FICA (saving you 22% federal + 7.65% FICA = 29.65% combined). 401(k) only reduces federal tax (the 7.65% FICA is still owed). 2026 HSA limits: $4,300 single / $8,550 family + $1,000 catch-up at 55+. Once HSA is maxed, capture full employer 401(k) match (typically 100% return), THEN consider Roth IRA, then traditional 401(k) up to the $23,000 limit.

What about Texas franchise tax?

The Texas Franchise Tax applies to BUSINESSES, not individuals. Businesses with total revenue under $2.47 million (2026 threshold) owe no franchise tax. Above that, the rate is 0.375% for retail/wholesale and 0.75% for most other businesses on margin (revenue − COGS or revenue − comp, with caps). The franchise tax doesn't apply to W-2 wages — that's what makes Texas so attractive for high-income earners.

How does Texas compare to other no-income-tax states?

Texas, Florida, Nevada, Washington, South Dakota, Tennessee, New Hampshire, Wyoming, Alaska all have no broad state income tax. The trade-offs vary: Florida has lower property tax than Texas; Washington has 7% capital gains tax above $250k; New Hampshire has a 4% tax on interest+dividends (phased out by 2027); Alaska sometimes pays residents a Permanent Fund dividend. For W-2 income only, Texas, Florida, and Nevada are typically the cheapest combined state burden.

Do I still need to file a Texas state tax return?

No. Texas doesn't have a state income tax, so there's no state return for personal income. You only file federal (Form 1040). Texas residents who work in another state may owe taxes to that other state and need to file there. Texas residents who work remotely for a company headquartered in another state generally owe no state tax to that state, but rules vary — consult a tax pro if you're a remote worker living in TX for a CA, NY, or NJ employer.

Self-employed in Texas — what changes?

As a sole proprietor or independent contractor, you owe Self-Employment (SE) tax in place of FICA — 15.3% (12.4% Social Security up to wage base + 2.9% Medicare, plus 0.9% additional Medicare above threshold). Half of SE tax is deductible against federal income. Texas business owners with revenue above $2.47M may also owe franchise tax. No state income tax still applies, so the combined federal + SE rate is your full burden on self-employment income.

What's the biggest paycheck mistake Texans make?

Under-contributing to retirement accounts because the take-home pay looks so healthy that there's no perceived 'pain' to motivate saving. Texans miss out on the federal tax shelter that high-tax-state residents are forced to use — but the math still favours saving. A 25-year-old in Texas earning $80k who saves nothing because 'rent is cheap' will retire with ~$0 vs the same person in California who maxes 401k (a behavioural quirk) and retires with $1.5M+. The state-tax savings should be the ROCKET FUEL for retirement savings, not the EXCUSE not to save.

How to use this calculator

Takes about 2 minutes.

Enter your annual gross salary
Pick filing status (single or married filing jointly)
Set your 401(k) contribution % (reduces federal tax only)
Set your annual HSA contribution (reduces federal AND FICA)
Pick your pay period to see per-paycheck take-home

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Key concepts

The Texas advantage. No state income tax means your paycheck is reduced only by federal tax (10–37% progressive) and FICA (7.65% on most wages). For middle-income earners ($50k–$150k), this typically nets ~$3,500–$8,000 more per year vs equivalent salary in California or New York. The offset: Texas has the 6th highest property-tax burden in the US, so homeowners see part of the income-tax savings clawed back through property tax bills.

FICA matters more than people realize. Even in no-state-tax Texas, FICA (Social Security 6.2% to $176,100 + Medicare 1.45%) is a guaranteed ~7.65% off every paycheck. High earners pay an additional 0.9% Medicare above $200k single / $250k MFJ. FICA hits gross wages — pre-tax 401(k) doesn't reduce it (but HSA does, which is why HSA is the underrated triple-tax-advantaged account).

2026 federal brackets (single). 10% to $11,925; 12% to $48,475; 22% to $103,350; 24% to $197,300; 32% to $250,525; 35% to $626,350; 37% above. MFJ brackets are roughly 2x single. Standard deduction $15,000 single, $30,000 MFJ. Marginal vs effective rate distinction matters — your top dollar pays your marginal rate, your average dollar pays the effective rate.

401(k) vs HSA precedence in TX. HSA first (triple-tax-advantaged), then capture full employer 401(k) match (free money, typically 100% return), then Roth IRA up to $7,000, then traditional 401(k) up to $23,000. This sequence maximises tax efficiency for Texans who don't get to use 401(k) for state-tax shelter (because there's no state tax).

The retirement-savings paradox. Texans often save LESS for retirement than Californians because the take-home pay looks comfortable. But Californians are forced to save via 401(k) to escape their high state tax — they retire with $1.5M while comparable-income Texans retire with $500k. The state-tax savings should be the ROCKET FUEL for retirement contributions, not the excuse not to make them.

Written and maintained by James Blanckenberg, Founder & Editor, FinCalcHub.

Last reviewed: 17 May 2026 · See editorial policy