Texas paycheck taxes at a glance
| State income tax | None on wages |
|---|---|
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | None |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $60,000 salary in Houston, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| Take-home pay | $1,938.08 | $50,390 |
Single, paid every two weeks (26 paychecks). Federal income tax and FICA are the only deductions, so the effective tax rate here is just the federal one. The same salary in a state with income tax would take home less.
A $120,000 household in Dallas, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,615.38 | $120,000 |
| 401(k) at 5% | − $230.77 | − $6,000 |
| Federal income tax | − $189.23 | − $4,920 |
| Social Security and Medicare | − $353.08 | − $9,180 |
| Take-home pay | $3,842.31 | $99,900 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). The 5% 401(k) deferral and two federal child tax credits lower federal income tax. Nothing changes at the state level because Texas has no income tax to reduce.
What is taken out of a Texas paycheck
Only federal items: federal income tax based on your Form W-4, 6.2% Social Security up to the yearly wage base, and 1.45% Medicare (plus 0.9% on wages over $200,000). Texas has no state W-4 because there is nothing to withhold. Any 401(k), HSA or health premium you choose still comes out before federal income tax. State unemployment tax is paid by your employer, not deducted from your pay.
How Texas raises money instead
The state charges a 6.25% sales and use tax, and cities, counties, transit authorities and special districts can add up to 2% more, for a maximum combined rate of 8.25%. Texas has no state property tax, but local taxing units such as school districts, cities and counties set their own property tax rates, and those bills can be large for homeowners. Renters usually pay them indirectly through rent.
Working across the state line
All four neighbours tax wages. If you live in Texas but work in Oklahoma, Louisiana, New Mexico or Arkansas, that state taxes the wages you earn there and your employer withholds its tax. Texas has no income tax to credit it against. If you work from home in Texas for an out-of-state employer, most states do not tax you, but a few, such as New York, may.
Texas vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Texas | None on wages | $0 | $61,593 |
| New Mexico | 1.5% to 5.9% (6 brackets) | $2,359 | $59,233 |
| Oklahoma | 2.5% to 4.5% (4 brackets, 0% up to $3,750 single) | $2,830 | $58,763 |
| Arkansas | 2% to 3.7% (5 brackets, 0% up to $5,599 single) | $2,287 | $59,305 |
| Louisiana | Flat 3% | $1,865 | $59,728 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.