Free Texas Paycheck Calculator
Estimate your take-home pay in Texas. Texas does not levy a state income tax, so your paycheck is only subject to federal income tax, Social Security, and Medicare withholdings. This can result in significantly higher take-home pay compared to states with income taxes.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Texas Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
Where Texas Stands: One of 9 States With No Income Tax
Texas is one of only 9 states that collect no tax on wage income, alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. Everywhere else, state income tax takes a bite out of each paycheck — the median top rate across the 42 states and jurisdictions that do tax wages is 5.54%.
Skipping the income tax does not make Texas tax-free. Its combined average sales tax is 8.2%, above the national median of 7%, and its average property tax rate of 1.68% is above the median of 0.87%.
For comparison, nearby states line up like this: Arkansas (top rate 3.9%); Louisiana (top rate 3%); New Mexico (top rate 5.9%); Oklahoma (top rate 4.75%).
Texas Tax Snapshot
- State Income Tax
- None
- Sales Tax (state + local avg)
- 8.20%
- Avg Property Tax Rate
- 1.68%
- Median Home Value
- $301,600
- State Minimum Wage
- $7.25/hr
Did You Know?
Texas prohibits a state income tax but has some of the highest property tax rates.
What Comes Out of a Texas Paycheck
Since Texas has no state income tax, your paycheck deductions are limited to federal income tax, Social Security (6.2%), and Medicare (1.45%). This tax advantage means workers in Texas typically take home more of their gross pay. The state minimum wage is $7.25 per hour, and the average property tax rate is 1.68% on homes valued around $301,600.
Texas also levies a combined state and average local sales tax of 8.20%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.
Frequently Asked Questions
Does Texas have a state income tax? + −
No. Texas does not levy a state income tax on wages and salaries. Texas prohibits a state income tax but has some of the highest property tax rates. This means your paycheck is only reduced by federal income tax, FICA (Social Security and Medicare), and any local taxes.
What is the sales tax rate in Texas? + −
The Texas state sales tax rate is 6.25%. When you include the average local rate of 1.95%, the combined rate is approximately 8.20%. Actual rates vary by city and county.
How do I calculate my Texas take-home pay? + −
Start with your gross salary, subtract federal income tax (based on your W-4 and tax bracket), subtract FICA taxes (7.65% — 6.2% Social Security up to the wage base + 1.45% Medicare). The remainder is your net take-home pay. Our calculator does this automatically.
What payroll deductions apply in Texas? + −
All Texas employees pay federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). Since Texas has no state income tax, no state withholding applies. Additional deductions may include 401(k) contributions, health insurance premiums, and any local taxes.
How often are Texas employees typically paid? + −
Most Texas employees are paid biweekly (26 paychecks per year) or semi-monthly (24 paychecks). Some employers use weekly or monthly pay schedules. Our calculator supports all frequencies — enter your gross pay for one period and it calculates your net pay after all applicable Texas taxes and deductions.
Which states have no income tax like Texas? + −
9 states currently collect no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In the other 42 states and jurisdictions, top rates reach a median of 5.54%, so Texas workers keep a larger share of every paycheck.
How does Texas raise revenue without a wage income tax? + −
Texas leans on its 8.2% combined average sales tax, property taxes averaging 1.68% on a median home value of $301,600, plus fees and excise taxes. Texas prohibits a state income tax but has some of the highest property tax rates.
How do nearby states' income taxes compare with Texas's? + −
Arkansas (top rate 3.9%); Louisiana (top rate 3%); New Mexico (top rate 5.9%); Oklahoma (top rate 4.75%). 4 of the 4 nearby states listed have a higher top rate than Texas, which taxes wages at 0%.
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