Texas Payroll Tax Calculator
Calculate estimated federal and state payroll taxes for employees in Texas. Note: Texas does not have state income tax, simplifying the calculation.
Weekly (52 pay periods)
Bi-weekly (26 pay periods)
Semi-monthly (24 pay periods)
Monthly (12 pay periods)
Understanding Texas Payroll Taxes
Payroll taxes are mandatory contributions deducted from an employee's wages and paid to the government. These taxes fund various social insurance programs. For employers, payroll taxes also include a matching contribution. In Texas, the tax landscape is somewhat simpler than in many other states because Texas is one of the few states that does not impose a state income tax. This significantly reduces the tax burden on both employees and employers.
Key Texas Payroll Tax Components:
- Federal Income Tax (FIT): This is the primary federal tax deducted from an employee's gross pay. The amount withheld depends on the employee's gross pay, filing status, and the number of withholding allowances claimed on Form W-4. The IRS provides tax tables for employers to use for withholding.
- Social Security Tax: This federal tax is levied on employees and employers to fund the Social Security program. For 2024, the employee rate is 6.2% on earnings up to the annual wage base limit of $168,600. Employers match this amount.
- Medicare Tax: Another federal tax used to fund Medicare, this is also paid by both employees and employers. For 2024, the employee rate is 1.45% on all earnings, with no wage base limit. Additional Medicare Tax of 0.9% applies to individual earnings over $200,000 ($250,000 for married couples filing jointly), with only the employee portion being withheld.
- Federal Unemployment Tax Act (FUTA): This is an employer-paid tax that funds state and federal unemployment benefits. While employers pay FUTA, it doesn't directly reduce the employee's take-home pay.
- State Unemployment Tax Act (SUTA): In Texas, employers pay into the Texas Workforce Commission (TWC) for unemployment insurance. The SUTA tax rate varies annually based on the employer's experience rating and the state's unemployment fund balance. This is an employer-paid tax and does not affect employee take-home pay.
- Texas Does Not Have State Income Tax: This is a significant advantage for both employees and employers in Texas. No state-level income tax means no state income tax withholding from employee wages.
How the Calculator Works:
This calculator focuses on the most common deductions from an employee's paycheck: Federal Income Tax (FIT), Social Security, and Medicare.
- Paycheck Amount: The annual salary is divided by the selected pay frequency to determine the gross pay per paycheck.
- Social Security Tax: Calculated as 6.2% of the gross paycheck amount, up to the annual wage limit. This calculator assumes the annual salary is below the $168,600 limit for 2024.
- Medicare Tax: Calculated as 1.45% of the gross paycheck amount. This calculator does not account for the Additional Medicare Tax for high earners.
- Federal Income Tax (FIT): This is the most complex component and is highly variable based on individual W-4 elections (filing status, dependents, other income, etc.). This calculator does not compute FIT, as it requires detailed W-4 information and complex IRS withholding tables. For accurate FIT withholding, consult official IRS resources or payroll software.
- Total Estimated Taxes: This calculator provides an estimate of the Social Security and Medicare taxes.
Disclaimer: This calculator provides an estimation for educational purposes only. It does not constitute financial or tax advice. Tax laws and rates are subject to change. Consult with a qualified tax professional or refer to official IRS and Texas Workforce Commission guidelines for precise calculations and advice.
Gross Pay Per Period: $${formattedGrossPay}
Social Security (6.2%): $${formattedSocialSecurity}
Medicare (1.45%): $${formattedMedicare}
`;
}