In Texas, there is NO state income tax and no state disability deduction — the only taxes taken from your paycheck are federal income tax and FICA (Social Security and Medicare).
Texas 2026 Income Tax Rates
Here is how Texas taxes wage income for 2026. Your employer uses these rates (along with your state withholding form) to decide how much to hold back from each paycheck.
Texas has no state income tax. There are no brackets — nothing is withheld at the state level.
Federal Taxes Still Apply
No matter which state you live in, the federal government takes its share first. Every Texas worker pays federal income tax (based on your Form W-4) and FICA — 6.2% for Social Security plus 1.45% for Medicare, totaling 7.65%. Learn more about how federal withholding works and FICA taxes. These federal deductions are usually the biggest lines on your pay stub, often larger than state tax.
How to Calculate Your Texas Take-Home Pay
Let's walk through a realistic example: a single worker earning $60,000 in Texas in 2026, taking the standard deduction and no pre-tax benefits.
Because Texas has no state income tax, a single worker earning $60,000 keeps an estimated $50,248 per year after federal tax and FICA — noticeably more than the same worker would keep in a high-tax state. That works out to about $1,933 per biweekly paycheck.
These are simplified estimates for illustration, not tax advice. Actual withholding depends on your W-4, deductions, benefits, and local taxes.
Texas-Specific Rules
Texas is one of nine states with no state income tax. That means your Texas paycheck only has federal deductions: federal income tax withholding and FICA (7.65%). There is no state disability insurance (SDI) deduction either. Texas funds its government largely through sales tax and property tax instead of a paycheck tax, so your take-home pay is higher than in most states for the same salary.
What Else Comes Out of Your Texas Paycheck
State income tax (or the lack of it) is only one line on your pay stub. When you look at the gap between your gross pay and the amount that actually lands in your bank account, several other deductions are usually at work in Texas:
- Social Security tax — 6.2% of your wages, up to the annual wage base. This funds retirement and disability benefits and shows up on every paycheck.
- Medicare tax — 1.45% of all wages with no cap, plus an extra 0.9% on very high earnings. Together with Social Security this is your FICA total.
- Pre-tax benefits — 401(k) or 403(b) retirement contributions, health, dental and vision insurance premiums, HSA or FSA contributions. These come out before tax is calculated, so they lower both your taxable income and your Texas state tax.
- Post-tax deductions — things like Roth 401(k) contributions, union dues, wage garnishments, or charitable giving through payroll.
- Local taxes — Texas does not add a statewide local wage tax for most workers, so your city generally does not take an extra cut of your paycheck.
Add these up and it is easy to see why your take-home pay can feel a lot smaller than your salary suggests. Reading your pay stub line by line is the fastest way to understand exactly where each dollar goes — see our guide on where your money went for a full breakdown.
How to Keep More of Your Texas Paycheck
You cannot avoid federal tax or FICA, but you have real control over how much is withheld and how much of your income is taxable in Texas. A few practical moves:
- Contribute to a pre-tax retirement plan. Every dollar you put into a traditional 401(k) or IRA reduces the wages that Texas the federal government taxes, so you shield income and build savings at the same time.
- Use tax-advantaged accounts. An HSA (if you have a high-deductible health plan) or an FSA lets you pay for medical costs with pre-tax dollars.
- Check your W-4. If you got a big refund last year, too much is being withheld and you are giving the government an interest-free loan. If you owed a lot, not enough is coming out. Our W-4 withholding calculator helps you dial it in.
- Review your pay stub every few months. Life changes — a raise, marriage, a new child, a second job — all change the right amount of tax to withhold.
Small adjustments add up. Fine-tuning your withholding will not change your total tax bill for the year, but it does let you decide whether you want that money in each paycheck or as a lump-sum refund. To see your own numbers, run them through our take-home pay calculators.