Wondering what your take-home pay will be in the Lone Star State? Use our simple Texas paycheck calculator to see how much you’ll net after federal taxes and personal deductions. One of the biggest advantages in Texas is the absence of state income tax, which means more of your hard-earned money stays in your pocket.
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How Your Texas Paycheck is Calculated (Gross to Net)
Ever wonder where your money goes between your gross salary and what you actually take home? Your paycheck goes on a simple journey from what you earned to what you keep. Because Texas has no state income tax, the calculation is more straightforward than in most other states.
Here’s a step-by-step breakdown:
- Start with Your Gross Pay: This is the total amount of money you earn before any taxes or deductions are taken out. For example, if you earn a $60,000 salary and are paid biweekly, your gross pay per paycheck is $2,307.69.
- Subtract Pre-Tax Deductions: Next, any pre-tax deductions are subtracted from your gross pay. These are beneficial because they lower the amount of your income that is subject to tax. Common pre-tax deductions include:
- Contributions to a 401(k) or 403(b) retirement plan.
- Health, dental, and vision insurance premiums.
- Contributions to a Health Savings Account (HSA) or Flexible Spending Account (FSA).
- Calculate Federal & FICA Taxes: After pre-tax deductions are removed, your remaining income is taxed at the federal level. This includes two main types of tax:
- Federal Income Tax: This is based on your income level, filing status, and the number of dependents you claim on your Form W-4.
- FICA Taxes: These are flat-rate taxes that fund Social Security and Medicare.
- Arrive at Your Net Pay: After all taxes and deductions (both pre-tax and post-tax) are subtracted, the remaining amount is your net pay, also known as your take-home pay. This is the final amount that gets deposited into your bank account.
Understanding Texas Paycheck Taxes & Deductions
While Texas is known for its low taxes, you are still responsible for federal taxes. Here’s what gets taken out of your paycheck.
No State Income Tax in Texas
This is the most important factor for your Texas paycheck. Texas is one of only nine states that does not have a state income tax. This provides a significant boost to your take-home pay compared to living in a state that taxes income.
Federal Income Tax
This is a progressive tax withheld by your employer based on the information you provide on your Form W-4. The more you earn, the higher your tax rate. Your filing status (Single, Married Filing Jointly, etc.) and the number of dependents you claim will determine your specific withholding amount.
FICA Taxes (Social Security & Medicare)
FICA tax is a federal payroll tax used to fund Social Security and Medicare. These rates are the same in every state. For 2025, the rates are:
| Tax Component | Employee Rate | Income Limit |
| Social Security | 6.2% | Up to $176,100 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income >$200k (Single) |
Paycheck Considerations for Major Texas Cities
Whether you live in Houston, Dallas, Austin, or San Antonio, your paycheck taxes are calculated the same way, as there are no local or city-level income taxes in Texas.
However, your net pay’s buying power can feel very different depending on where you live due to significant variations in the cost of living. A $75,000 salary in Houston might feel very different from the same salary in Austin. Use this calculator to determine your net pay, then consider the local cost of living to understand your true financial picture.
Frequently Asked Questions (FAQs)
Q: How much tax is taken out of a paycheck in Texas?
In Texas, your paycheck is subject to federal income tax and FICA taxes (7.65% for Social Security and Medicare). The exact percentage for federal income tax varies based on your earnings, filing status, and W-4 information. There is no state income tax.
Q: How does contributing to a 401(k) affect my Texas paycheck?
Contributing to a traditional 401(k) lowers your taxable income. The money is deducted from your gross pay before taxes are calculated, which means you’ll pay less in federal income tax. This can slightly increase your immediate take-home pay compared to making no contribution, while also saving for retirement.
Q: What is the difference between gross pay and net pay?
Gross pay is your total salary or wages before any deductions. Net pay, or take-home pay, is the amount you actually receive in your bank account after all taxes and deductions have been subtracted.
Q: How do I calculate my biweekly take-home pay?
To estimate your biweekly pay, divide your annual salary by 26. Then, subtract any biweekly pre-tax deductions and your estimated federal tax withholding. The easiest way is to enter your salary and select the “biweekly” pay frequency in the calculator above for an instant, accurate result.
Q: Do I pay city income taxes in Dallas, Houston, or Austin?
No. No city in Texas imposes a local income tax on individuals.