Texas Paycheck Calculator

Correct — Texas is one of nine US states with no state income tax, enshrined in the Texas Constitution (Article 8, Section 24). This ban requires a constitutional amendment to change, making it extremely durable. Texas funds its government primarily through property taxes and sales taxes instead.

Even without state income tax, you still pay federal income tax plus FICA (6.2% Social Security on wages up to $168,600, plus 1.45% Medicare with no cap). These federal deductions apply regardless of which state you live in. Your employer may also deduct health insurance premiums, 401(k) contributions, or other voluntary benefits.

No. Texas cities and counties are prohibited by state law from levying a local income tax. The only local taxes Texans pay are property taxes (which are among the highest in the US) and local sales taxes (up to 2% on top of the 6.25% state rate, capped at 8.25% combined).

FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employees pay 6.2% of wages toward Social Security (up to the $176,100 wage base in 2026) and 1.45% toward Medicare with no cap. These deductions apply in every state — they are federal, not state, taxes.

Gross pay is your salary or hourly wages before any deductions. Net pay (take-home pay) is what you actually receive after federal income tax, FICA, state income tax, and any voluntary deductions like health insurance or 401(k) contributions are withheld. This calculator shows both.