| Monthly Take-Home: | $'+monthly.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+' |
| Bi-Weekly Take-Home: | $'+biweekly.toLocaleString(undefined,{maximumFractionDigits:2})+' |
| Federal Income Tax: | -$'+fedTax.toLocaleString(undefined,{maximumFractionDigits:0})+' |
| Social Security: | -$'+ficaSoc.toLocaleString(undefined,{maximumFractionDigits:0})+' |
| Medicare: | -$'+ficaMed.toLocaleString(undefined,{maximumFractionDigits:0})+' |
| State Income Tax (TX): | $0.00 |
Texas Tax Calculator Use
Use this Texas tax calculator to estimate your take-home pay in the Lone Star State. Texas is one of the few states in the U.S. that does not impose a state individual income tax, making it a popular destination for workers looking to maximize their earnings. This tool accounts for federal income tax, FICA (Social Security and Medicare), and allows you to factor in pre-tax deductions to give you a clear picture of your net salary.
- Gross Annual Income
- Your total yearly salary before any taxes or deductions are removed.
- Filing Status
- Select Single, Married Filing Jointly, or Head of Household. This determines your federal tax brackets and standard deduction.
- Local Sales Tax Rate
- While the Texas state sales tax is 6.25%, local jurisdictions can add up to 2%, often resulting in a total of 8.25% in cities like Houston, Dallas, or Austin.
How It Works
Calculating your taxes in Texas is simpler than in most states because the state income tax is effectively 0%. However, you still owe federal taxes. The formula used by our texas tax calculator is:
Net Pay = Gross Income – Federal Income Tax – FICA – Pre-tax Deductions
- Federal Income Tax: Calculated using the IRS progressive tax brackets (10% to 37%) after applying the standard deduction.
- FICA: Includes Social Security (6.2% up to the wage base limit) and Medicare (1.45%).
- Standard Deduction: The portion of income not subject to tax ($14,600 for singles in 2024).
Calculation Example
Example: An individual living in Dallas, Texas, earning $80,000 annually with a Single filing status and no pre-tax deductions.
Step-by-step solution:
- Gross Income = $80,000
- Subtract Standard Deduction ($14,600) = $65,400 Taxable Income
- Calculate Federal Tax: First $11,600 at 10%, next $35,550 at 12%, remaining $18,250 at 22%. Total Federal Tax ≈ $9,219.
- Calculate FICA: $80,000 × 7.65% = $6,120.
- State Income Tax = $0.
- Total Deductions: $9,219 + $6,120 = $15,339.
- Annual Net Pay = $64,661 (Monthly: $5,388).
Texas Tax Common Questions
Does Texas have any state income tax?
No. The Texas Constitution prohibits the state from imposing an individual income tax. This is a primary driver for people relocating to Texas, though it is often balanced by higher property tax rates compared to the national average.
What is the sales tax rate in Texas?
The base state sales tax rate is 6.25%. Local taxing jurisdictions (cities, counties, and special districts) can impose up to an additional 2%, making the maximum combined rate 8.25% in most metropolitan areas.
How are property taxes handled in Texas?
Since Texas has no income tax, it relies heavily on property taxes to fund local services like schools and infrastructure. Rates vary significantly by county but typically range from 1.5% to 2.5% of the property's appraised value.
Do I need to file a Texas state tax return?
No, individuals do not need to file a state tax return in Texas. You only need to file your federal tax return with the IRS. However, businesses may still be subject to the Texas Franchise Tax depending on their revenue levels.