Texas Paycheck Calculator
Calculate your exact take-home pay in the Lone Star State. See exactly how much you save by living in a state with zero income tax.
How much is Texas state income tax?
The state of Texas currently does not levy a personal state income tax on wages. Your paycheck is only subject to federal income taxes and standard FICA payroll taxes (Social Security and Medicare). Because the state tax rate on W-2 income is $0.00, professionals moving to Texas from high-tax states experience a noticeable increase in their monthly take-home pay.
- Professionals relocating to Texas
- W-2 employees in Austin, Dallas, & Houston
- Remote workers comparing state taxes
- Anyone negotiating a new TX salary
1. Enter Your Salary Details
Sets your approximate Federal standard deduction.
⚙️ 2. Advanced Deductions (Optional)
e.g., Traditional 401(k), Health Insurance. Reduces federal income tax only.
e.g., Roth 401(k). Reduces take-home pay but does not save on taxes.
🔒 Your data is never stored or shared. Results are estimates only. Not tax advice.
Estimated Annual Net Pay
💡 Total Annual Taxes Paid: $0.00
Our Texas paycheck calculator utilizes the latest available IRS federal tax brackets and standard deductions. We designed this tool specifically to help relocating professionals, remote workers, and native Texans estimate their net pay in a state without a personal income tax.
No. The state of Texas currently does not levy a personal state income tax on wages under its constitution. When you earn a salary in Texas, your paycheck is only reduced by federal income taxes and mandatory FICA payroll taxes (Social Security and Medicare).
Why You Need a Texas Paycheck Calculator
Over the last decade, Texas has experienced one of the largest corporate and residential migrations in American history. Companies are leaving coastal cities, setting up massive headquarters in Austin, Dallas, and Houston. The main draw for these companies—and the employees following them—is the potential for a noticeable boost to their net wealth.
Moving from a high-tax state to a zero-tax state can feel like getting an automatic raise without doing any extra work. But before you start looking at real estate, you have to run your exact numbers. Utilizing a highly accurate Texas paycheck calculator helps you visualize exactly what your monthly budget will look like once state deductions disappear from your pay stub.
Real-Life Example: A $60,000 Salary in Texas
If you earn $60,000 per year in Texas as a Single filer with no additional deductions, your estimated take-home pay is roughly in the low-$50,000 range depending on federal brackets and deductions. Because you do not lose an extra 4% to 6% to a state government, your monthly cash flow is noticeably higher than a peer earning the exact same base salary in New York or California.
Federal Taxes: The IRS Still Gets Paid
Living in the Lone Star State shields you from local wage taxation, but it does absolutely nothing to protect you from the Internal Revenue Service (IRS). No matter where you live in the United States, you are subject to the exact same federal progressive tax system.
How Federal Progressive Brackets Work
The federal tax code is built on marginal tax brackets. This means your income is chopped up into different tiers, and each tier is taxed at a progressively higher rate. Based on recent IRS tax brackets, these start at a low 10% for your first block of income and scale all the way up to 37% for the highest earners.
Our Texas paycheck calculator automatically applies the estimated standard deduction based on your filing status before running your money through these progressive tiers. The IRS allows you to shield approximately the current IRS standard deduction (which changes each tax year based on inflation adjustments) completely free from federal income tax.
FICA Payroll Taxes Explained
Aside from federal income tax, every W-2 employee in Texas must pay mandatory payroll taxes. These are officially known as FICA (Federal Insurance Contributions Act) taxes, and they exist to fund the nation’s social safety net programs.
The 6.2% Social Security Tax
The first half of FICA is dedicated to the Social Security Administration. You are required to pay 6.2% up to the Social Security wage base of your gross salary into this program. Once your income crosses that threshold, you stop paying the 6.2% tax on any dollars earned above that limit.
The Medicare Tax and High-Earner Surcharges
The second half of FICA is dedicated to Medicare. This requires a flat 1.45% tax on your gross wages. Unlike Social Security, the standard Medicare tax has no wage cap—you pay it on every single dollar you earn. If you are highly successful, the IRS hits you slightly harder. Single filers earning over $200,000 (and married couples earning over $250,000) are subjected to an additional 0.9% Medicare surtax.
Texas vs. California: The Relocation Math
If you are actively weighing a tech job offer in Austin versus an offer in San Francisco, the base salary numbers can be deeply deceiving. Coastal tech companies usually offer slightly higher base salaries to offset their massive cost of living. But when you run the math, the Texas offer almost always wins the take-home pay battle.
Why High Earners Flee to Texas
The math becomes extreme as your salary scales upward. Because California’s top marginal income tax rate reaches 13.3% for very high earners, while New York City residents can face combined state and local taxes approaching 14.7%, highly compensated executives can save significant amounts of wealth by establishing residency in Texas.
The Catch: Texas Property and Sales Taxes
Texas does not run its government for free. While the state currently restricts an income tax on wages, the Texas Comptroller still has to generate billions of dollars to fund schools, roads, and infrastructure. They achieve this by shifting the financial burden away from your paycheck and directly onto your physical consumption and real estate.
One of the Highest Property Taxes in America
If you take the boost in your net pay and immediately buy a sprawling home in a Dallas suburb, you might be shocked by your monthly mortgage payment. Texas relies heavily on local property taxes. While the national average property tax rate hovers around 1%, many counties in Texas charge property tax rates exceeding 1.8% or even 2.0%.
The 8.25% Sales Tax Reality
Furthermore, you are taxed every time you open your wallet at a cash register. The Texas state sales tax is set at 6.25%, but local cities and counties are allowed to add their own levies up to an additional 2%. This means residents in major metro areas routinely pay an 8.25% sales tax on almost all consumer goods and retail purchases.
⚠️ The Total Tax Burden Trap
Do not let the lack of a state wage tax blind you to your overall household budget. Before moving to Texas, you must calculate your total tax burden. If you plan to rent an apartment and save your money, Texas is a financial advantage. If you plan to buy a massive $800,000 house, your yearly property tax bill could easily offset the savings you gained from avoiding state income tax.
How Pre-Tax Deductions Boost Your Texas Paycheck
Even without a state income tax to worry about, you should still fiercely protect your wealth from the federal government. The easiest way to maximize the output of our Texas paycheck calculator is to actively utilize pre-tax deductions provided by your employer.
Maxing Out Your 401(k)
When you direct money from your paycheck into a traditional 401(k), the IRS lowers your total taxable income by that exact amount. If you earn $100,000 and contribute $10,000 to your retirement account, the federal government only taxes you as if you made $90,000. Because your taxable base shrinks, your overall federal tax bill plummets.
| Tax Type | Applies in Texas? | Who Collects It? |
|---|---|---|
| Federal Income Tax | Yes | Internal Revenue Service (IRS) |
| FICA (SS & Medicare) | Yes | Federal Government |
| State Income Tax | No ($0) | None |
| Local City Income Tax | No ($0) | None |