Does Texas Tax Your Paycheck?
No, and the protection is unusually strong. Texas has no individual income tax, and the state constitution requires a statewide voter referendum before lawmakers could ever impose one. Federal income tax and FICA still come out of every check, but nothing goes to Austin from your wages.
Texas funds itself through sales taxes, property taxes, and oil and gas revenue instead. The property tax side is the real tradeoff: Texas homeowners face some of the highest effective property tax rates in the nation, which is worth weighing when a bigger paycheck tempts you toward a bigger house.
Using the Calculator
Texas is preselected below. Enter your gross pay and pay frequency to see take-home pay with the state line at zero. Because the state math is simple, the valuable comparisons are the interstate ones.
Weighing a move? Run the identical salary through our New Mexico paycheck calculator or the Oklahoma version to see exactly what an income tax costs per check across the state line.
Where Your Texas Paycheck Goes
Federal income tax and FICA are the only government deductions on a Texas paycheck. There is no state withholding, no state disability insurance, and no paid family leave payroll deduction. From Houston energy corridors to Austin tech offices, the stub looks the same.
Texas employers also benefit from the simple payroll picture: no state withholding tables to maintain means fewer payroll errors and faster onboarding. Workers pocketing the difference often redirect it toward the state's higher property tax bills or simply enjoy the larger deposit.
Texas Payroll Details to Know
Minimum wage and overtime
Texas follows the federal minimum wage of $7.25 per hour and has not set a higher state rate. Overtime follows the federal Fair Labor Standards Act at time and a half after 40 hours in a week.
Payday rules
The Texas Payday Law requires non-exempt employees to be paid at least twice a month, with paydays no more than 16 days apart, and exempt employees at least once a month. Most Texas employers land on biweekly or semimonthly schedules.
No local income taxes
Texas law bars cities and counties from collecting income taxes, so a paycheck in Houston is taxed exactly like one in El Paso or a town of two thousand. Local revenue comes from sales and property taxes instead.
Worked Example: $75,000 in Houston
Take a single filer in Houston earning $75,000, paid biweekly. Federal tax on $58,900 of taxable income is about $7,670, FICA takes $5,737.50, and Texas takes $0. That is the complete deduction list.
| Item | Annual Amount |
| Gross Pay | $75,000.00 |
| Federal Income Tax | ~$7,670.00 |
| Social Security (6.2%) | $4,650.00 |
| Medicare (1.45%) | $1,087.50 |
| Texas State Income Tax | $0.00 |
| Net Annual Pay | ~$61,592.50 |
Net pay is about $61,592 a year, or roughly $2,368.94 every two weeks, an effective rate near 17.9%. The same salary in a mid-tax state nets several thousand less, which is the core of the Texas recruiting pitch. Enter your own salary above.
Paycheck Mistakes Texas Workers Make
- Thinking no state tax equals no deductions. Federal tax and FICA still claim about 18% at this income.
- Ignoring property taxes when buying a home. Texas makes up the revenue there.
- Comparing a Texas offer to another state on gross salary instead of net take-home pay.
- Forgetting that pre-tax 401(k) contributions still cut the federal bill, even with no state tax to cut.
- Mixing up semimonthly (24 checks) and biweekly (26 checks) schedules when budgeting.
Frequently Asked Questions
Does Texas have a state income tax?
No, and the constitution requires voter approval before one could ever be imposed.
What is the minimum wage in Texas for 2026?
$7.25 per hour in Texas, the federal rate that applies statewide.
Do Texas workers pay state disability tax?
No state disability insurance or paid family leave payroll tax exists in Texas.
How often must Texas employers pay workers?
Non-exempt employees at least twice a month under the Texas Payday Law; exempt employees at least once a month.
Can a Texas city charge income tax?
No. State law bars cities and counties from collecting local income taxes.
Why are Texas property taxes so high?
With no income tax, the state leans on property and sales taxes, producing some of the highest effective property tax rates nationally.
More Texas and Paycheck Tools
Build a matching stub with the Pay Stub Generator, or see the spending side with the Texas sales tax calculator. Compare with the New Mexico and Oklahoma paycheck calculators, or return to the main Paycheck Calculator.
Sources: IRS Publication 15-T, U.S. Department of Labor, Tax Foundation 2026 state tax brackets, the Texas Workforce Commission. Figures reflect 2026 tax law. This calculator gives an estimate for planning purposes and is not tax advice.