| Gross Pay | $'+gross.toLocaleString()+' |
| Pre-tax Deductions | -$'+pretax.toLocaleString()+' |
| Federal Income Tax | -$'+fedTaxPerPeriod.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Social Security (6.2%) | -$'+ssTax.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Medicare (1.45%) | -$'+medTax.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Texas State Tax | $0.00 |
| Total Net Take-Home | $'+netPay.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
Calculator Use
The Texas Paycheck Calculator is designed to help employees in the Lone Star State estimate their actual take-home pay after all mandatory withholdings. Since Texas is one of the few states that does not collect a state income tax, your primary withholdings will consist of Federal Income Tax and FICA (Social Security and Medicare) taxes.
To get an accurate estimate, enter your gross pay per period, select your pay frequency, and choose your filing status. The tool will automatically calculate the estimated federal tax based on 2024 IRS tax brackets.
- Gross Pay
- The total amount you earn per pay period before any taxes or deductions are removed.
- Pay Frequency
- How often you receive a paycheck (e.g., Weekly, Bi-weekly, or Monthly).
- Filing Status
- Your tax filing status (Single or Married Filing Jointly), which determines your standard deduction and tax brackets.
- Pre-tax Deductions
- Voluntary contributions like 401(k) plans or health insurance premiums that reduce your taxable income.
How It Works
When calculating a paycheck in Texas, the math is simpler than in most states because the state withholding variable is zero. However, federal regulations still apply. Here is the general formula:
Net Pay = Gross Pay – Federal Income Tax – FICA – Pre-tax Deductions
- Federal Income Tax: Calculated by annualizing your pay, subtracting the standard deduction, and applying the progressive IRS tax brackets (10% to 37%).
- FICA: Consists of Social Security (6.2% up to the annual limit) and Medicare (1.45%).
- Texas State Tax: Always $0.00 due to the Texas Constitution's prohibition on state income tax.
Calculation Example
Example: An individual in Austin, Texas earns $3,000 bi-weekly as a Single filer with no pre-tax deductions.
Step-by-step solution:
- Annual Gross: $3,000 × 26 = $78,000
- Standard Deduction: $14,600 (2024 Single)
- Taxable Income: $78,000 – $14,600 = $63,400
- Federal Tax: Estimated at ~$8,983 annually / 26 periods ≈ $345.50
- Social Security: $3,000 × 0.062 = $186.00
- Medicare: $3,000 × 0.0145 = $43.50
- Net Pay: $3,000 – $345.50 – $186.00 – $43.50 = $2,425.00
Common Questions
Why is there no state tax in Texas?
Texas is one of nine states that do not have a personal income tax. This is a point of pride for the state and is used as an incentive to attract businesses and residents. The state funds its budget primarily through sales taxes and property taxes instead.
Does the Texas paycheck calculator include local taxes?
No. Unlike cities like New York or Philadelphia, Texas cities do not impose local income taxes. Whether you live in Houston, Dallas, or El Paso, your local income tax withholding will be zero.
What is FICA?
FICA stands for the Federal Insurance Contributions Act. It is a mandatory federal payroll tax that funds Social Security and Medicare. Both the employee and the employer contribute a portion of the employee's gross wages.