How Much Tax Is Deducted From a Paycheck in Texas (2026)?

Updated 2026-10-03 · Reviewed against official government sources

Texas doesn't tax wages, and its constitution has banned a personal income tax since 2019 unless voters approve one. A Texas paycheck has only two federal deductions: federal income tax and FICA (Social Security and Medicare). There's no state disability or paid-leave premium, and Texas unemployment tax is paid only by employers. A single worker earning $60,000 keeps about $50,390 a year. Here's the breakdown, and the property and sales taxes that make up for the missing income tax.

What comes out of a Texas paycheck

Federal income tax: based on your W-4 and the 2026 brackets (10%–37%) after the $16,100 single / $32,200 joint standard deduction.
Social Security: 6.2% of wages up to $184,500.
Medicare: 1.45% of all wages, plus 0.9% above $200,000.
Texas state income tax: $0. No state SDI, PFML or employee unemployment tax either.
Voluntary deductions: 401(k), health insurance, HSA and similar.

Texas take-home pay at common salaries (single, 2026)

These assume the standard deduction, no pre-tax deductions and annual figures. Divide by 26 for biweekly pay or by 24 for semimonthly pay.

Salary	Federal income tax	FICA	Take-home (year)	Biweekly	Taken
$40,000	$2,620	$3,060	$34,320	$1,320	14.2%
$60,000	$5,020	$4,590	$50,390	$1,938	16.0%
$75,000	$7,670	$5,738	$61,593	$2,369	17.9%
$100,000	$13,170	$7,650	$79,180	$3,045	20.8%

Worked example: $75,000 in Houston

Taxable income is $75,000 − $16,100 = $58,900. Federal tax is $1,240 (10%) + $4,560 (12% of $38,000) + $1,870 (22% of $8,500) = $7,670. FICA is 7.65% × $75,000 = $5,737.50. Total taken: $13,407.50. Take-home pay is $61,592.50, or about $2,369 every two weeks.

The same salary in California would lose about another $3,640 to state income tax and SDI.

The tradeoff: property tax and sales tax

Texas funds schools and local government mostly through property tax, and its effective rates are among the highest in the country. In large metro areas, combined rates (county, city, school district and special districts) are often around 2% of taxable value. In November 2025, voters raised the homestead exemption for school district taxes from $100,000 to $140,000 (Proposition 13). Homeowners who are 65+ or disabled now exempt $200,000.

Illustration: suppose a $350,000 homestead faces a 2.0% total rate, with half of it from school taxes. School tax would be about 1.0% × $210,000 = $2,100, and other taxes about 1.0% × $350,000 = $3,500, for roughly $5,600 a year. Renters pay property tax indirectly through rent.

Sales tax is 6.25% at the state level, and local governments can add up to 2%. The population-weighted average combined rate is 8.20% (July 2026). Groceries and prescription drugs are exempt.

Texas taxes on businesses and the self-employed

Texas has a franchise ("margin") tax on many businesses, but sole proprietors and general partnerships owned by individuals are not subject to it. Self-employed Texans pay 15.3% federal self-employment tax on 92.35% of net earnings plus federal income tax, and no state income tax.

Texas take-home pay for families

With no state tax, a Texas paycheck depends entirely on federal filing status and credits. These 2026 figures assume wages only, the standard deduction and children under 17 who qualify for the $2,200 child tax credit.

Household	Federal income tax	FICA	Take-home (year)	Per biweekly check
Married, no kids, $75,000	$4,640	$5,738	$64,623	$2,485
Married, 2 kids, $100,000	$3,240	$7,650	$89,110	$3,427
Married, 2 kids, $150,000	$10,940	$11,475	$127,585	$4,907
Head of household, 1 kid, $60,000	$1,748	$4,590	$53,662	$2,064

Texas pay rules: how often you're paid and your final check

The Texas Payday Law (Texas Labor Code Chapter 61) sets when wages must be paid, even though the state takes no tax out. The Texas Workforce Commission enforces it.

Final paychecks have firm deadlines. If you are fired or laid off, your employer must pay all wages owed within six calendar days. If you quit, final pay is due by the next regularly scheduled payday. If an employer misses these deadlines, you can file a wage claim with the Texas Workforce Commission, generally within 180 days of the date the wages were due.

Minimum wage: Texas follows the federal $7.25 an hour. Tipped employees can be paid a cash wage of $2.13 an hour if tips make up the difference.
Tips and overtime are still subject to FICA. The federal tips and overtime deductions for 2025 through 2028 lower only federal income tax.
Bonuses have no state withholding in Texas. Federal withholding is usually a flat 22%.

Where a Texas paycheck goes further, and where it doesn't

The missing income tax is worth the most to high earners and two-income households. A married couple earning $150,000 with two kids keeps $127,585 in Texas, versus about $121,287 in California, a difference of $6,298 a year before housing costs.

For renters and lower earners, the gap is smaller once sales tax is included. At the 8.20% average combined rate, $20,000 of taxable spending costs $1,640 a year in sales tax. Homeowners should price property tax before deciding, because it often ends up being the biggest Texas tax they pay.

Related calculators & guides

Frequently asked questions

Does Texas have a state income tax?

No. Texas has no personal income tax, and a 2019 constitutional amendment requires voter approval to create one.

How much is taken out of a $60,000 paycheck in Texas?

About $9,610 a year for a single filer: $5,020 federal income tax and $4,590 FICA. Take-home pay is about $50,390, or $1,938 biweekly.

Does Texas take out state unemployment or disability from paychecks?

No. Texas unemployment tax (SUTA) is paid only by employers, and Texas has no state disability insurance program.

Why is my Texas paycheck still smaller than expected?

Usually because of pre-tax benefits, extra W-4 withholding, or the flat 22% federal rate on bonus pay.

Are Texas property taxes really that high?

Yes, they're among the highest in the nation, often around 2% of taxable value in metro areas. The $140,000 school homestead exemption ($200,000 if 65+ or disabled) reduces the bill for owner-occupied homes.

When must a Texas employer give me my final paycheck?

Within six calendar days if you are fired or laid off, and by the next regularly scheduled payday if you quit. These deadlines come from the Texas Payday Law.

What is the minimum wage in Texas in 2026?

$7.25 an hour, the federal minimum, which Texas law adopts. Tipped workers can be paid $2.13 an hour in cash wages as long as tips bring them to at least $7.25.

How much is taken out of a Texas paycheck for a married couple earning $100,000?

With two children under 17, about $3,240 of federal income tax and $7,650 of FICA for the year, leaving $89,110, or about $3,427 per biweekly check.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.