How the Texas paycheck calculator works
This calculator computes your exact 2026 Texas net pay using current IRS federal brackets, the 2026 Social Security wage base ($176,100), and the standard Medicare rate. Because Texas charges zero state income tax, the math is simpler than in California or New York — but federal tax, FICA, and pre-tax deductions still apply.
Enter your annual gross salary, filing status, and pay frequency. The right-hand panel updates instantly with your federal tax, FICA breakdown, and net take-home per paycheck. Adjust 401(k), HSA, and health premiums to model real before/after scenarios — every input only affects the in-browser calculation. Nothing is sent to a server.
Why Texas paychecks are larger than 41 other states
Texas is one of nine U.S. states with zero state income tax. The others are Alaska, Florida, Nevada, New Hampshire (interest/dividends only until 2027), South Dakota, Tennessee, Washington, and Wyoming. That means every dollar on your Texas W-2 that would otherwise go to state income tax stays in your paycheck — about $3,500-$8,000 per year for a typical full-time worker.
The Texas constitution requires a constitutional amendment passed by voters to ever impose a state income tax. The most recent attempt (Proposition 4 in 2019) actually went the OTHER direction, strengthening the prohibition by requiring a 2/3 legislative supermajority before any future income tax could be put on the ballot.
2026 take-home pay comparison: Texas vs other states
Same $75,000 salary, single filer, no 401(k), federal taxes apply equally — the difference is state tax only:
| State | State tax rate | Approx state tax | Net vs TX |
|---|---|---|---|
| Texas | 0% | $0 | baseline |
| Florida | 0% | $0 | same |
| Tennessee | 0% | $0 | same |
| Washington | 0% | $0 | same |
| Colorado | 4.40% flat | ~$3,300 | −$3,300 |
| Pennsylvania | 3.07% flat | ~$2,300 | −$2,300 |
| Illinois | 4.95% flat | ~$3,700 | −$3,700 |
| Massachusetts | 5% flat | ~$3,750 | −$3,750 |
| Georgia | 1–5.39% graduated | ~$3,300 | −$3,300 |
| New York | 4–10.9% graduated | ~$4,200 | −$4,200 |
| California | 1–13.3% graduated | ~$4,500 | −$4,500 |
The big tradeoff: Texas property tax
Texas funds its zero-income-tax policy primarily through property tax — the 8th highest in the nation at a 1.68% average effective rate. A $400,000 Texas home generates ~$6,700/year in property tax versus ~$1,200 in Colorado at similar home value. Concrete examples:
| City | Median home value | Property tax rate | Annual property tax |
|---|---|---|---|
| Houston | $280,000 | 2.09% | ~$5,850 |
| Dallas | $320,000 | 2.18% | ~$6,970 |
| Austin | $525,000 | 1.81% | ~$9,500 |
| San Antonio | $245,000 | 2.05% | ~$5,020 |
| Fort Worth | $285,000 | 2.12% | ~$6,040 |
| El Paso | $200,000 | 2.34% | ~$4,680 |
| Plano | $465,000 | 1.95% | ~$9,070 |
Texas's 10% annual assessment cap (Homestead Exemption) prevents your property tax from jumping more than 10%/year on your primary residence even when market values surge.
What's still deducted from your Texas paycheck
- Federal income tax — graduated 10–37% based on bracket; 2026 single standard deduction is $15,000, MFJ is $30,000.
- Social Security — 6.2% on the first $176,100 of 2026 wages.
- Medicare — 1.45% on all wages, plus 0.9% on wages above $200,000 (single) or $250,000 (MFJ).
- Pre-tax deductions — 401(k), HSA, FSA, dental, vision, and qualified health insurance premiums under a Section 125 cafeteria plan.
- Post-tax deductions — Roth 401(k), disability insurance, group life, garnishments, and child support.
Texas-specific items that DON'T hit your check
- No state income tax (0%) — Texas Constitution prohibits without voter approval
- No local or city income tax — Houston, Dallas, Austin, San Antonio, Fort Worth all zero
- No state disability insurance (SDI) deduction
- No paid family leave deduction
- No franchise tax on W-2 wages (only applies to LLCs/corps with $1.23M+ revenue)
Step-by-step: how to use this calculator
- Annual gross salary — the total before any deductions (offer letter amount or W-2 line 1 plus pre-tax items).
- Filing status — single, married filing jointly (MFJ), or head of household (HoH). Sets your standard deduction and federal bracket thresholds.
- Pay frequency — weekly (52/yr), biweekly (26/yr), semi-monthly (24/yr), or monthly (12/yr). Most Texas employers use biweekly.
- 401(k) percentage — pre-tax contribution. 2026 limit: $23,500 (under 50) or $31,000 (50+). Don't include Roth 401(k) — that's post-tax.
- HSA contribution — only if you have an HDHP and contribute through payroll. 2026 limits: $4,300 (self) / $8,550 (family). Payroll HSA = pre-FICA savings (the most powerful deduction available).
- Health insurance premium — your portion only (after employer subsidy). Pre-tax if your employer runs a Section 125 cafeteria plan.
Texas salary brackets — take-home at common income levels
Approximate 2026 net take-home for a single filer in Texas with no 401(k) and the standard deduction:
| Gross salary | Federal tax | FICA | Annual net | Biweekly net |
|---|---|---|---|---|
| $30,000 | ~$1,800 | $2,295 | ~$25,900 | ~$995 |
| $45,000 | ~$3,600 | $3,443 | ~$38,000 | ~$1,460 |
| $60,000 | ~$5,600 | $4,590 | ~$49,800 | ~$1,915 |
| $75,000 | ~$8,200 | $5,738 | ~$61,100 | ~$2,350 |
| $100,000 | ~$13,800 | $7,650 | ~$78,550 | ~$3,020 |
| $150,000 | ~$26,500 | $11,475 | ~$112,000 | ~$4,310 |
| $200,000 | ~$41,000 | $14,950 | ~$144,000 | ~$5,540 |
| $250,000 | ~$56,500 | $17,930 | ~$175,600 | ~$6,750 |
Texas minimum wage in 2026
Texas uses the federal minimum wage of $7.25/hour — unchanged since 2009. Texas state law does NOT mandate a higher minimum and preempts cities from setting their own (so even Austin, Dallas, and Houston can't enact a local minimum above $7.25 for private employers). Tipped minimum is $2.13/hour with tips required to bring the total to at least $7.25.
- City employees in Austin and Dallas earn higher municipal minimums (~$15/hr) — but this applies only to direct city employees and contractors, not private workers.
- Public school teachers, state university staff, and federal contractors follow their respective wage schedules (often well above $7.25).
- Many Texas private employers voluntarily pay $12-15/hr to compete for labor in tight markets like Houston oil/gas and Austin tech.
Texas overtime — federal rules apply
Texas has no state overtime law, so the federal FLSA governs:
- Non-exempt employees earn 1.5× regular rate for hours over 40 per workweek.
- No daily overtime (unlike California's 8-hour rule).
- Salaried exempt employees earning $1,128/week ($58,656/year) or more are not entitled to overtime.
- Overtime is taxed at your normal marginal bracket — no special "overtime tax bracket."
Texas self-employment, 1099, and freelance income
Texas freelancers and 1099 contractors benefit from zero state income tax, but still owe federal self-employment tax (15.3% on first $176,100 net + 2.9% Medicare above) and regular federal income tax:
- No Texas state withholding required from 1099 payments.
- Quarterly federal estimates are mandatory: April 15, June 15, September 15, January 15.
- Half of SE tax is deductible from federal AGI.
- Texas franchise tax kicks in only if your LLC/S-corp earns $1.23M+ in annual revenue (E-Z computation rate: 0.331%).
For precise 1099 numbers, see our self-employment tax calculator and 1099 vs W-2 comparison.
Texas bonus and supplemental wage tax
IRS treats bonuses as supplemental wages at a flat 22% federal withholding (37% above $1M cumulative supplemental). Texas adds nothing because there's no state tax. A $5,000 Texas bonus nets:
- Federal withholding: $1,100
- FICA: $382.50
- Texas state: $0
- Net bonus: ~$3,517
Texas retirement income tax (also zero)
Like Florida and Tennessee, Texas doesn't tax retirement income. Social Security, 401(k), IRA, pension, and annuity income are all state-tax-free. For retirees moving from California or New York, this means an effective 4-9% raise in income.
Other Texas-specific financial considerations
- Sales tax: 6.25% state + up to 2% local (usually 8.25% in major cities). Groceries and prescriptions are exempt.
- Auto insurance: Texas average premium ~$1,800/year — moderate compared to FL or LA.
- Home insurance: $2,400/year average — higher than national due to severe weather risk (tornadoes, hail in N. Texas, hurricanes on Gulf Coast).
- No estate or inheritance tax — Texas eliminated the "death tax" in 2015.
- Vehicle registration: $50-$80 annual, plus county fees.
Best Texas cities for take-home pay (cost-of-living adjusted)
$75,000 stretches very differently across Texas:
| City | COL Index | Median rent (1BR) | Avg property tax |
|---|---|---|---|
| San Antonio | 91 | $1,200 | $5,020 |
| El Paso | 83 | $950 | $4,680 |
| Fort Worth | 97 | $1,350 | $6,040 |
| Houston | 96 | $1,400 | $5,850 |
| Dallas | 103 | $1,600 | $6,970 |
| Austin | 119 | $1,900 | $9,500 |
| Plano | 111 | $1,700 | $9,070 |
El Paso, San Antonio, and Fort Worth give the highest effective take-home; Austin and Plano eat the tax savings via housing and property tax.
Common Texas payroll mistakes to avoid
- Setting W-4 to "exempt" because Texas has no state tax — that's a federal form. Marking exempt stops federal withholding too.
- Not factoring in property tax when comparing offers — a $75k Austin job with a mortgage often nets less than a $70k Houston job because of the property-tax gap.
- Confusing pre-tax 401(k) with Roth 401(k) — both reduce paycheck, only pre-tax reduces federal taxable income now.
- Skipping HSA when on an HDHP — HSA is the only triple-tax-advantaged account (pre-FICA, tax-free growth, tax-free qualified withdrawals).
- Forgetting Medicare surcharge above $200k — your employer only withholds from their wages; if you have multiple jobs crossing the threshold, you owe at tax time.