If you’re working in Texas and wondering what your take-home pay will really be after taxes, you’re in the right place. Because while Texas doesn’t have a state income tax, you still face federal taxes, Social Security, Medicare and other deductions.
I’ll walk you through a clear, step-by-step process to calculate your paycheck after taxes in Texas, show real-world examples, and share smart strategies to maximise your net pay.
Understanding the Basics
Gross Pay vs Net Pay – What’s the difference?
- Gross pay is the total amount you earn before any taxes or deductions.
- Net (take-home) pay is what you actually receive after all taxes and deductions are removed.
Understanding that gap helps you budget, compare jobs, and avoid surprises.
What taxes apply in Texas?
Since you’re working in Texas:
- There’s no state income tax, which is a big plus for take-home pay.
- But you still pay federal income tax, according to the brackets set by the Internal Revenue Service. For example, the 2025 federal tax brackets use progressive rates from 10 % up to 37 %.
- You also pay Social Security (6.2 %) and Medicare (1.45 % + an additional 0.9 % if you’re a higher earner).
- Finally, you may have pre-tax or post-tax deductions (benefits, retirement contributions etc.) that affect your net pay.
Other paycheck deductions you should know
- Pre-tax deductions reduce your taxable income: for example 401(k)/403(b) contributions, HSA (Health Savings Account), qualifying health insurance premiums.
- Post-tax deductions happen after tax is calculated: for example Roth retirement contributions, wage garnishments, union dues.
Each deduction changes your take-home pay, so knowing which line items affect gross vs taxable income is key.
Step-by-Step: Manual Calculation (No Calculator Needed)
Here’s how you can calculate your expected net pay in Texas if you want to do it manually:
Step 1 – Determine your gross pay
- If you’re salaried: take your annual salary. Example: $60,000/year.
- If you’re hourly: hourly wage × hours worked per pay period × number of pay periods per year.
- Pay frequency matters (weekly, biweekly, semi-monthly, monthly) for translating to per-paycheck figures.
Step 2 – Subtract pre-tax deductions
Example table:
| Type | Monthly amount |
|---|---|
| 401(k) 6% of salary | $300 |
| Health insurance premium | $200 |
Subtract these from your gross pay before tax calculations.
Step 3 – Calculate taxable income for federal tax
Taxable income = Gross pay − (pre-tax deductions).
Then use the federal tax bracket table to estimate; remember only the portion above each bracket is taxed at the higher rate.
Step 4 – Apply FICA (Social Security + Medicare)
- Social Security tax is 6.2 % of wages up to the annual cap.
- Medicare tax is 1.45 % of wages (plus 0.9 % extra when income exceeds a threshold).
These amounts are fairly predictable and apply to employees in Texas just the same as elsewhere.
Step 5 – Subtract post-tax deductions
These include items like charity donations taken from your paycheck, Roth contributions or other after-tax benefit costs.
Step 6 – Net take-home pay
Net pay = Gross pay − (Federal income tax + FICA + Pre-tax deductions + Post-tax deductions).
You can build a simple table to convert this into per-paycheck amounts depending on your pay frequency. West-coast professionals can contrast taxes via the Oregon paycheck calculator.
Real-World Examples for Texas Workers
Example A – $40,000 salary, single, no overtime
| Item | Annual amount |
|---|---|
| Gross pay | $40,000 |
| Pre-tax 401(k) 5% | − $2,000 |
| Taxable income | $38,000 |
| Federal tax (approx) | (Use bracket) |
| FICA/Medicare | ~6.2 % + 1.45 % |
| Estimated net take-home | ~$30,000 (approx) |
Example B – $80,000 salary, married filing jointly, 401(k) 6%, health insurance $300/month
| Item | Annual amount |
|---|---|
| Gross pay | $80,000 |
| Pre-tax 401(k) 6% | − $4,800 |
| Health premium | − $3,600 |
| Taxable income | $71,600 |
| Federal income tax + FICA/Medicare | Calculate accordingly |
| Estimated monthly take-home | ~ $4,500-$5,000 (approx) |
Example C – Hourly job: $25/hour, 45 hours/week (overtime 1.5×)
- Regular hours: 40 × $25 = $1,000/week
- Overtime 5 hours × $37.50 = $187.50/week
- Weekly gross ≈ $1,187.50 → Annual ≈ $61,750
Use the same deduction/tax steps to estimate net pay.
Example D – Side gig + full-time job scenario
If you have a full-time job and a part-time side gig in Texas, your total gross pay increases, you may fall into a higher federal tax bracket & FICA may apply differently.
Be careful with withholding amounts and check your W-4. Whether you’re an employee or employer, our accurate payroll calculator ensures correct earnings estimations every time.
Comparing Texas with Other States
| Gross Salary | Net Pay in Texas (Approx) | Net Pay in State with 5 % State Income Tax | Difference |
|---|---|---|---|
| $60,000 | ~$46,000 | ~$43,000 | ~$3,000 |
| $100,000 | ~$75,000 | ~$70,000 | ~$5,000 |
Because Texas has no state income tax, your net take-home pay is typically higher — meaning more money in your pocket. This can affect your budget, savings potential and job offer comparisons. For southern pay estimates, check the Georgia paycheck calculator.
How Pay Frequency Affects Your Paycheck
If your employer pays you:
- Weekly (52 pay periods)
- Bi-weekly (26 pay periods)
- Semi-monthly (24 pay periods)
- Monthly (12 pay periods)
Then your gross per-paycheck = Annual salary ÷ number of periods.
For example: $60,000/year → Monthly gross ~ $5,000.
Then subtract deductions/taxes to get net.
This matters for budgeting — smaller, more frequent paychecks vs larger ones less often changes how you manage cashflow. Compare Midwest earnings between Illinois paycheck calculator and neighboring states.
How to Maximise Your Take-Home Pay in Texas
Use your W-4 wisely
Make sure you fill out your W-4 form correctly — especially after life changes (marriage, new job, side gig). This helps ensure your withholding isn’t too high or too low.
Use pre-tax benefits effectively
Contributing to a 401(k) or HSA lowers your taxable income, which means higher take-home pay after deductions. It’s a smart move in a no-state-income-tax state like Texas.
Manage overtime and bonus pay
Bonuses and overtime often bump you into higher tax brackets temporarily or increase withholding. Be aware how this affects your net paycheck.
Avoid common paycheck mistakes
- Not updating your W-4 after major changes.
- Forgetting to factor in pre-tax deductions.
- Ignoring side income and resulting tax/withholding issues.
By staying proactive, you keep more of your money.
Frequently Asked Questions (FAQ)
Q: What percentage of my paycheck goes to taxes in Texas?
A: With no state income tax in Texas, you’ll pay federal tax (depending on your bracket), Social Security and Medicare. So the exact % depends on your gross pay, deductions and filing status.
Q: Does Texas have state income tax on paychecks?
No — Texas does not impose a state income tax, which means no state tax withholding from your paycheck.
Q: How do I calculate my net pay in Texas if I make $50,000 a year?
Start with $50k gross → subtract pre-tax contributions → apply federal income tax + FICA/Medicare → subtract post-tax deductions → result = net take-home pay.
Q: How does pre-tax deduction (401(k), HSA) affect my take-home pay?
Pre-tax contributions reduce your taxable income, which lowers the amount you owe in federal tax — thus increasing your net take-home pay.
Q: How does overtime pay affect my paycheck after taxes in Texas?
Overtime increases your gross pay, may push you into a higher tax bracket, and increases FICA/Medicare contributions — meaning a smaller percentage of the overtime may show up as take-home.
Q: Do I need to fill out a different W-4 if I live or work in Texas?
The W-4 is the same form nationwide. But since Texas has no state income tax, you only deal with federal withholding. Ensure your W-4 accurately reflects your situation to avoid under- or over-withholding.
Q: What taxes are deducted from a Texas paycheck besides federal income tax?
Common deductions include Social Security tax, Medicare tax, and any pre-tax/post-tax deductions (benefits, retirement savings). No state income tax applies.
Q: How often should I calculate my paycheck after taxes in Texas?
It’s good practice to review each pay period, especially when you start a new job, get a raise, change pay frequency, or have major life changes (marriage, side-gig, child).
Q: How does having two jobs in Texas impact my net pay after taxes?
Multiple incomes add together for federal tax purposes; you might end up in a higher bracket. Make sure withholding is set correctly and total deductions accounted for.
Q: What common mistakes reduce net take-home pay in Texas?
Biggest mistakes: unclear W-4, forgetting pre-tax contributions, ignoring pay frequency effects, not planning for side income. Addressing these can significantly improve your take-home pay.
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.