Does Texas have a state income tax?

No. Texas is one of nine US states with no state income tax, and it has never had one since joining the Union in 1845. Your paycheck is only reduced by federal income tax, Social Security (6.2%), and Medicare (1.45%). In 2019, Texas voters overwhelmingly approved Proposition 4, a constitutional amendment that permanently bans a state income tax by requiring a two-thirds supermajority in both chambers of the legislature plus a public referendum to repeal the ban. This makes Texas one of the most tax-friendly states for wage earners, especially compared to neighboring states like Louisiana (top rate 4.25%), Oklahoma (top rate 4.75%), Arkansas (top rate 4.4%), and New Mexico (top rate 5.9%), all of which impose state income taxes on their residents.

How much does a $25/hour worker take home in Texas?

At $25/hour working 40 hours per week, filing single with no pre-tax deductions, your gross annual pay is $52,000. After subtracting a federal income tax of approximately $4,290, Social Security of roughly $3,224, and Medicare of about $754, your annual take-home is approximately $43,732, which works out to about $1,682 per biweekly paycheck. By comparison, the same worker in California would owe an additional $1,500 to $2,000 in state income tax, reducing their biweekly paycheck by $58 to $77. You can verify these numbers by running our calculator above with your exact inputs and adjusting the filing status or pre-tax deduction percentage to see how changes affect your result.

What is the Texas minimum wage in 2025-2026?

Texas follows the federal minimum wage of $7.25 per hour, which has remained unchanged since July 2009 and is one of the lowest minimum wage rates in the country. Despite this low floor, many Texas employers offer starting wages well above $7.25 because of competitive labor markets, particularly in metropolitan areas like Houston, Dallas-Fort Worth, Austin, and San Antonio. The average hourly wage in Texas is approximately $28 to $30 per hour across all occupations, though this varies significantly by industry, with oil and gas, technology, and healthcare workers earning well above the median. Workers earning minimum wage in Texas take home nearly all of their pay because their annual income of $15,080 falls below the standard deduction threshold, resulting in little to no federal income tax.

Do I still pay FICA taxes in Texas?

Yes, FICA taxes are federal obligations that apply in all 50 states regardless of whether a state levies its own income tax. You pay 6.2% of your gross wages toward Social Security on earnings up to the annual wage base of $176,100, and 1.45% toward Medicare on all wages with no upper limit. If your wages exceed $200,000 as a single filer or $250,000 as a married joint filer, you owe an additional 0.9% Medicare surtax on the amount above those thresholds. Your employer matches the base FICA contributions, paying 6.2% for Social Security and 1.45% for Medicare on your behalf, but this employer share does not reduce your paycheck and is not reflected in your take-home pay calculation.

Is it better to live in Texas or California for take-home pay?

For identical salaries, Texas workers take home significantly more than California workers because Texas has no state income tax while California imposes rates ranging from 1% to 13.3%. At a $75,000 salary, you can expect roughly $4,000 to $6,000 more in annual take-home pay in Texas, and the gap widens dramatically at higher incomes because California uses a steeply progressive bracket structure. However, Texas compensates for its lack of income tax through higher property taxes (often 1.6% to 2.2% of assessed value) and sales taxes (up to 8.25%), so the total tax burden depends heavily on whether you own a home, how much you spend on taxable goods, and your overall financial profile. Use our California and Texas paycheck calculators side by side to compare take-home pay for your specific hourly rate and filing status.

What taxes does Texas have instead of income tax?

Texas funds its state and local government through property taxes, sales taxes, and a franchise tax on businesses rather than a personal income tax. Texas property tax rates are among the highest in the nation, typically ranging from 1.6% to 2.2% of a home assessed value, which can amount to $5,000 to $15,000 or more per year on a median-priced home. The state sales tax rate is 6.25%, and local jurisdictions can add up to 2% more, bringing the maximum combined rate to 8.25% on most retail purchases. The franchise tax, sometimes called the Texas margin tax, applies only to businesses with revenues above $2.47 million and does not directly affect your individual paycheck calculation.

How do I adjust my W-4 withholding in Texas?

Even though Texas has no state income tax, your federal W-4 form still controls how much federal income tax is withheld from each paycheck, and getting it right can mean the difference between a large refund and an unexpected tax bill in April. You can submit a new W-4 to your employer at any time to reflect life changes such as getting married, having a child, starting a side job, or adjusting your itemized deductions. The IRS offers a free Tax Withholding Estimator at irs.gov that walks you through your income, deductions, and credits to recommend the optimal W-4 settings so you come as close to a zero balance as possible at filing time. Accurate withholding is especially critical if you hold multiple jobs in Texas, because each employer calculates withholding independently and assumes it is your only source of income, which frequently leads to under-withholding and a surprise tax bill.

Texas Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Texas Paycheck Calculator Works

This Texas paycheck calculator hourly tool computes your take-home pay by subtracting federal income tax and FICA (Social Security + Medicare) from your gross earnings. Because Texas levies no state income tax, only federal deductions apply, which makes the calculation simpler than in most other states.

The core formula:

Take-Home = Gross Pay - Federal Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{SS} - T_{Med}

Annual gross pay is calculated as: hourly wage x hours per week x 52 weeks. If you want to convert your hourly rate to an annual salary or vice versa, our salary calculator can help. The per-period amount divides your annual figure by the number of pay periods in the year (52 for weekly, 26 for biweekly, 24 for semi-monthly, 12 for monthly).

Federal income tax uses a progressive bracket system, meaning different portions of your income are taxed at different rates. For a single filer in 2025, the first $11,925 of taxable income is taxed at 10%, income from $11,926 to $48,475 is taxed at 12%, income from $48,476 to $103,350 is taxed at 22%, and higher brackets continue at 24%, 32%, 35%, and 37%. Your taxable income is your gross pay minus any pre-tax deductions and the standard deduction ($15,000 for single filers, $30,000 for married filing jointly). Only the income within each bracket is taxed at that bracket's rate, so moving into a higher bracket does not retroactively increase the tax on your lower income.

FICA taxes are split into two components. Social Security tax is a flat 6.2% applied to all wages up to the annual wage base of $176,100. Once your cumulative earnings for the year exceed that threshold, no additional Social Security tax is withheld. Medicare tax is a flat 1.45% on all wages with no upper limit, plus an additional 0.9% surtax on wages exceeding $200,000 for single filers or $250,000 for married joint filers. Your employer pays a matching 6.2% Social Security and 1.45% Medicare on your behalf, but that employer share does not reduce your paycheck.

Texas Hourly Paycheck Tax Breakdown

Texas imposes no state income tax on wages, salaries, or any other form of personal income. This has been the case since Texas joined the Union in 1845 — the state has never had an income tax at any point in its history. In November 2019, Texas voters approved Proposition 4, a constitutional amendment that permanently bans the legislature from enacting a state income tax. The amendment requires a two-thirds supermajority vote in both chambers of the legislature followed by a statewide referendum to repeal the ban, making the introduction of a state income tax virtually impossible for the foreseeable future.

This stands in sharp contrast to every state that borders Texas. Louisiana imposes a state income tax with a top rate of 4.25%. Oklahoma taxes personal income at rates up to 4.75%. Arkansas applies rates as high as 4.4%, and New Mexico charges up to 5.9% on high earners. For a Texas worker earning $80,000 per year, the absence of state income tax means keeping an additional $2,500 to $4,000 annually compared to an identical worker in one of those neighboring states.

The benefit of no state income tax is largest in absolute dollar terms for high earners. A software engineer earning $150,000 in Texas saves roughly $7,000 to $10,000 per year compared to working in a state with a 5% to 7% income tax rate. A retail worker earning $30,000, by contrast, might save only $800 to $1,200 because they would fall into lower state tax brackets elsewhere. In percentage terms, however, the savings are meaningful at every income level because even small percentage-point reductions in tax add up over a career.

Your Texas paycheck deductions come from three federal sources:

Federal income tax: Calculated using progressive IRS brackets based on your filing status and taxable income (gross minus the standard deduction and pre-tax contributions). You can estimate your full-year federal liability with our income tax calculator.
Social Security: A flat 6.2% on wages up to the annual wage base of $176,100. Wages above this threshold are exempt from Social Security tax for the remainder of the calendar year.
Medicare: A flat 1.45% on all wages, plus an additional 0.9% surtax on wages exceeding $200,000 (single) or $250,000 (married filing jointly).

Variable Definitions

Hourly Wage: Your gross pay per hour before any deductions. This is the rate your employer pays you, not your effective rate after taxes. If you receive tips, include your base hourly rate only. A retail worker earning $15 per hour and a software developer earning $55 per hour will see very different tax brackets applied to their annual income: the $15/hour worker earns $31,200 annually and stays mostly in the 10% and 12% federal brackets, while the $55/hour worker earns $114,400 and reaches the 22% bracket on a significant portion of income.

Hours per Week: The total hours you work each week. Standard full-time is 40 hours. If your hours vary, use your average over the past month. Overtime hours (above 40) should use your overtime rate in a separate calculation. For example, a nurse working three 12-hour shifts per week would enter 36 hours, while a construction worker averaging 45 hours would enter 45 but should note that 5 of those hours may be paid at 1.5 times the base rate under federal overtime rules.

Pay Frequency: How often you receive a paycheck. Weekly means 52 paychecks per year, biweekly means 26, semi-monthly means 24 (typically the 1st and 15th of each month), and monthly means 12. This affects per-period amounts but not annual totals. A worker earning $20/hour at 40 hours/week has the same $41,600 annual gross regardless of pay frequency, but their biweekly paycheck of $1,600 gross will be different from their semi-monthly paycheck of approximately $1,733 gross.

Filing Status: Your federal tax filing status, which determines your standard deduction and the income thresholds for each tax bracket. Single applies to unmarried individuals and carries a standard deduction of $15,000. Married Filing Jointly combines both spouses' income but doubles the standard deduction to $30,000, which can produce significant tax savings. For example, a single filer earning $60,000 has $45,000 in taxable income, while a married couple where one spouse earns $60,000 and the other earns $0 has only $30,000 in taxable income, saving thousands in federal tax. Head of Household applies to unmarried individuals who pay more than half the cost of maintaining a home for a qualifying dependent and offers a standard deduction of $22,500.

Pre-Tax Deduction: The percentage of gross pay you contribute to tax-advantaged accounts like a 401(k), 403(b), traditional IRA, or HSA. These contributions reduce your taxable income, lowering your federal tax bill. For instance, a worker earning $50,000 who contributes 10% to a 401(k) reduces their taxable gross to $45,000, saving approximately $600 to $1,100 in federal taxes depending on their bracket, while also building retirement savings.

Worked Example 1: Texas Hourly Paycheck at $30/Hour

A single filer earning $30/hour, working 40 hours/week, biweekly pay, with a 6% pre-tax 401(k) contribution:

Annual gross: $30 x 40 x 52 = $62,400
Pre-tax deduction: $62,400 x 6% = $3,744
Taxable gross: $62,400 - $3,744 = $58,656
Federal taxable income: $58,656 - $15,000 (standard deduction) = $43,656
Federal tax: ($11,925 x 10%) + ($31,731 x 12%) = $1,192.50 + $3,807.72 = $5,000.22
Social Security: $58,656 x 6.2% = $3,636.67
Medicare: $58,656 x 1.45% = $850.51
State tax: $0 (Texas has no income tax)
Total deductions: $3,744 + $5,000.22 + $3,636.67 + $850.51 = $13,231.40
Annual take-home: $62,400 - $13,231.40 = $49,168.60
Biweekly take-home: $49,168.60 / 26 = $1,891.10

Worked Example 2: Texas Minimum Wage Paycheck at $7.25/Hour

A single filer earning Texas minimum wage of $7.25/hour, working 40 hours/week, biweekly pay, with no pre-tax deductions:

Annual gross: $7.25 x 40 x 52 = $15,080
Pre-tax deduction: $0 (no 401(k) or other contributions)
Taxable gross: $15,080
Federal taxable income: $15,080 - $15,000 (standard deduction) = $80
Federal tax: $80 x 10% = $8.00
Social Security: $15,080 x 6.2% = $934.96
Medicare: $15,080 x 1.45% = $218.66
State tax: $0 (Texas has no income tax)
Total deductions: $8.00 + $934.96 + $218.66 = $1,161.62
Annual take-home: $15,080 - $1,161.62 = $13,918.38
Biweekly take-home: $13,918.38 / 26 = $535.32

This example illustrates how a minimum-wage worker in Texas pays almost no federal income tax because the standard deduction of $15,000 nearly eliminates their taxable income. The vast majority of their paycheck deductions come from FICA taxes, which apply from the first dollar earned regardless of income level. This worker may also qualify for the Earned Income Tax Credit (EITC) when filing their annual return, which could result in a refund that exceeds the small amount of federal tax withheld during the year.

Edge Cases and Advanced Scenarios

The Social Security wage base cap: If you earn above $176,100 annually, you stop paying Social Security tax on wages above that threshold. For a Texas worker earning $200,000, Social Security tax is capped at $176,100 x 6.2% = $10,918.20, not $200,000 x 6.2%. This cap resets each January 1, so you will begin paying Social Security tax again starting with your first paycheck of the new year.

Additional Medicare tax for high earners: If your wages exceed $200,000 (single) or $250,000 (married), you owe an additional 0.9% Medicare surtax on the excess. This is withheld by your employer once your year-to-date wages cross the threshold. For a $220,000 earner filing single, the additional Medicare tax is ($220,000 - $200,000) x 0.9% = $180.

Multiple jobs and W-4 considerations: When someone holds two or more part-time jobs in Texas, each employer withholds federal income tax independently based on the W-4 information provided to that employer alone. Each employer assumes its wages are your only source of income and applies the standard deduction and lower tax brackets accordingly. This frequently results in under-withholding because your combined income from both jobs may push you into a higher tax bracket than either employer realizes. To avoid a surprise tax bill, you should either check the "multiple jobs" box on Step 2 of your W-4, use the IRS Multiple Jobs Worksheet, or request additional withholding on Line 4(c) of your W-4 at one or both employers.

What to Do with Your Texas Paycheck Result

Compare your calculated take-home pay to your actual paycheck stub. If they differ significantly, check whether your employer is withholding at a different rate or if you have additional payroll deductions (health insurance, union dues, garnishments) not captured here.
Use the annual take-home figure to build a monthly budget. Divide by 12 for a monthly spending target that accounts for all federal taxes.
Consider increasing your 401(k) contribution. In Texas, every dollar contributed reduces your federal tax but costs you nothing in state tax — maximizing the benefit of pre-tax contributions.
If you are comparing job offers across states, use this result alongside the California and Florida calculators to see how state taxes affect your actual take-home pay for the same salary.
Use our federal income tax percentage calculator to check your effective federal tax rate and see what share of your gross income goes to federal taxes overall.

Related Calculators

California Paycheck Calculator (Hourly) — compare your Texas take-home to California's high state tax rates.
Florida Paycheck Calculator (Hourly) — Florida also has no state income tax; compare the two.
Salary Calculator — convert between hourly and annual pay.
Income Tax Calculator — estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator — find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Texas Paycheck Calculator (Hourly)