How to Calculate Your Paycheck After Taxes in Texas
Quick Texas Tax Facts
- No state income tax in Texas
- Only federal taxes and FICA apply
- Standard deduction: $14,600 (2024)
- Dependent credit: $2,000 per dependent
Step 1: Determine Your Pay Period
First, identify how often you get paid:
- Bi-weekly (26 pay periods per year)
- Semi-monthly (24 pay periods per year)
- Monthly (12 pay periods per year)
Example:
If you earn $60,000 per year:
Bi-weekly: $60,000 ÷ 26 = $2,307.69 per paycheck
Semi-monthly: $60,000 ÷ 24 = $2,500 per paycheck
Monthly: $60,000 ÷ 12 = $5,000 per paycheck
Semi-monthly: $60,000 ÷ 24 = $2,500 per paycheck
Monthly: $60,000 ÷ 12 = $5,000 per paycheck
Step 2: Calculate Federal Income Tax
For 2024, use these tax brackets (Single Filing):
- 10% on first $11,600
- 12% on $11,601 to $47,150
- 22% on $47,151 to $100,525
- 24% on $100,526 to $191,950
- 32% on $191,951 to $243,725
- 35% on $243,726 to $609,350
- 37% above $609,350
Taxable Income = Annual Salary – Standard Deduction – (Dependents × $2,000)
Federal Tax = Calculate tax for each bracket
Federal Tax = Calculate tax for each bracket
Step 3: Calculate FICA Deductions
FICA Deductions (2024)
Social Security (6.2%)
Up to $168,600
Medicare (1.45%)
No income limit
Social Security = Gross Pay × 0.062
Medicare = Gross Pay × 0.0145
Medicare = Gross Pay × 0.0145
Step 4: Subtract Pre-tax Deductions
Common pre-tax deductions include:
- 401(k) contributions
- Health insurance premiums
- HSA contributions
- FSA contributions
Important:
These deductions reduce your taxable income, saving you money on taxes.
Step 5: Calculate Your Take-Home Pay
Example Calculation for $60,000 Annual Salary:
Gross Pay (Bi-weekly)
$2,307.69
Federal Tax
-$346.15
Social Security
-$143.08
Medicare
-$33.46
401(k) (5%)
-$115.38
Health Insurance
-$100.00
Net Take-Home Pay
$1,569.62
Tips for Maximizing Your Take-Home Pay
- Contribute to pre-tax retirement accounts
- Use health savings accounts (HSA) if eligible
- Take advantage of flexible spending accounts (FSA)
- Claim all eligible tax credits and deductions
Remember:
- Keep track of all deductions
- Update your W-4 when life changes occur
- Review your paycheck regularly
- Consult a tax professional for complex situations