If you work in Texas, you’ve probably heard that there’s no state income tax—which sounds great until you see how much still comes out of your paycheck. Federal taxes, Social Security, and Medicare still apply, and understanding how to calculate them helps you plan your budget and your take-home pay.
In this guide, you’ll learn exactly how to calculate taxes on your Texas paycheck, what deductions to expect, and how to estimate what actually lands in your bank account. Use the Colorado paycheck calculator to compare mountain-state salaries.
Step 1: Start with Your Gross Pay
Your gross pay is the total amount you earn before taxes or deductions.
Examples:
- Salary: If you make $60,000 per year, your monthly gross pay is $5,000.
- Hourly: If you earn $25 per hour and work 40 hours a week, that’s $1,000 weekly or about $52,000 annually.
If you’re paid biweekly, divide your annual salary by 26. For monthly, divide by 12.
This number is the foundation for every other calculation.
Step 2: Subtract Pre-Tax Deductions
Before taxes hit your paycheck, certain deductions reduce your taxable income. These are called pre-tax deductions and include:
- 401(k) or 403(b) retirement contributions
- Health, dental, or vision insurance premiums
- Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions
- Commuter benefits
Example:
If your monthly gross pay is $5,000 and you contribute $300 to your 401(k) and $200 to health insurance, your taxable income becomes:
$5,000 − $500 = $4,500
That $4,500 is what federal and payroll taxes will apply to.
Step 3: Calculate Federal Income Tax
Texas doesn’t have a state income tax, but federal income tax still applies based on your filing status and income bracket.
2025 Federal Tax Brackets (Single Filer)
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
| 32% | $191,951 – $243,725 |
| 35% | $243,726 – $609,350 |
| 37% | Over $609,351 |
To calculate your federal withholding, apply each rate to the portion of income that falls within its range.
It’s essential to know your real paycheck before making financial commitments or accepting new roles. The Wisconsin hourly calculator shows updated minimum-wage results.
Step 4: Add FICA Taxes (Social Security and Medicare)
Every paycheck in Texas includes FICA taxes, which fund Social Security and Medicare. These are flat rates, so they’re easy to calculate:
| Tax Type | Rate | Notes |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 in earnings |
| Medicare | 1.45% | No limit |
| Additional Medicare | +0.9% | For income over $200,000 (single) |
Example:
If you earn $60,000 per year:
- Social Security = 6.2% × 60,000 = $3,720
- Medicare = 1.45% × 60,000 = $870
Total FICA = $4,590/year (about 7.65%)
Step 5: Subtract Post-Tax Deductions
After taxes, some employers may deduct:
- Roth 401(k) or IRA contributions
- Wage garnishments
- Union dues
- Life insurance or charitable deductions
These don’t reduce your taxable income but still reduce your net pay.
Step 6: Determine Your Take-Home Pay (Net Pay)
Now you can calculate your take-home pay, also called net pay:
Net Pay = Gross Pay − (Federal Income Tax + FICA + Pre-Tax Deductions + Post-Tax Deductions)
Example (Single filer, $60,000/year):
| Category | Amount |
|---|---|
| Gross Pay | $60,000 |
| Pre-Tax Deductions | −$3,000 |
| Federal Income Tax (12%) | −$6,840 |
| FICA (7.65%) | −$4,590 |
| Net Take-Home | ≈ $45,570/year |
Your approximate monthly paycheck after taxes = $3,797.
Step 7: Compare Texas With Other States
Texas stands out because there’s no state income tax, which increases your take-home pay compared to states like California or New York.
| Gross Salary | Texas Net Pay | California Net Pay | Difference |
|---|---|---|---|
| $60,000 | ~$45,500 | ~$41,000 | +$4,500 |
| $100,000 | ~$74,500 | ~$68,000 | +$6,500 |
So even though federal taxes apply equally, your Texas paycheck often stretches further.
Step 8: Consider Pay Frequency (Weekly, Biweekly, Monthly)
The more often you’re paid, the smaller each paycheck—but the total tax over the year stays the same.
| Pay Frequency | Paychecks/Year | Example Net Pay ($60,000/year) |
|---|---|---|
| Weekly | 52 | ~$875 |
| Biweekly | 26 | ~$1,750 |
| Monthly | 12 | ~$3,797 |
Biweekly is the most common schedule for Texas employers, but understanding frequency helps with budgeting.
Bonus Tips to Maximize Your Take-Home Pay
- Review your W-4 regularly. Life changes (new job, marriage, dependents) affect your withholding.
- Max out pre-tax benefits like a 401(k), HSA, or FSA to lower taxable income.
- Check your pay stubs for errors and confirm that deductions match your benefits.
- Keep an eye on overtime and bonuses. These are often taxed at a 22% flat rate.
West-coast professionals can contrast taxes via the Oregon paycheck calculator.
Frequently Asked Questions
1. What taxes are taken out of a paycheck in Texas?
Federal income tax, Social Security, and Medicare. Texas doesn’t collect state income tax.
2. How do I calculate my paycheck after taxes in Texas?
Start with your gross pay, subtract pre-tax deductions, apply federal income tax and FICA, then subtract any post-tax deductions.
3. What percentage of my paycheck goes to taxes in Texas?
Typically between 10% and 22%, depending on your income and benefits.
4. How does having two jobs affect my paycheck taxes?
It can push your total income into a higher federal bracket. Update your W-4s to avoid under-withholding.
5. How can I reduce how much tax is taken out of my paycheck?
Increase pre-tax deductions or adjust your W-4 withholding allowances.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.