Texas Payroll & Paycheck Tax Calculator

Texas is huge. But filing payroll and taxes isn’t. Keep the job simple with our easy-to-use Payroll Tax Calculator. It crunches the numbers, from take-home pay to taxes and deductions (like state unemployment tax), regardless of whether employees are salaried or hourly. Even in a state with no income tax, payroll isn’t a free ride. Get it right and see what your obligations are.

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Texas Payroll Tax Steps

Payroll shouldn’t take as long as driving across Texas. Use our calculator to skip the guesswork and cut through the clutter so your payroll is fast and accurate. You’ll be able to withhold appropriate taxes, knowing you’re using up-to-date federal tax tables and state unemployment tax withholding.

Here are some key steps you’ll have to take to make smarter payroll decisions:

Step #1: Register for a Texas Workforce Commission (TWC) Account
Step #2: File Your Paperwork, Even in a State without Income Taxes
Step #3: Learn Texas Minimum Wage and Overtime Laws
Step #4: Don’t Forget Texas’ Pay Period Laws
Step #5: Use our Simple Texas Payroll Calculator
Step #6: Submit Payroll Taxes and File Reports

How much tax is taken out of a paycheck in Texas?

Texas has no state income tax, so paycheck deductions come from federal sources only: federal income tax based on your W-4, Social Security at 6.2%, and Medicare at 1.45%. Most hourly and salaried workers see roughly 20 to 30% of gross pay withheld in total, though the exact figure depends on filing status, income level, and any pre-tax deductions.

Because that percentage varies person to person, Fingercheck’s calculator above gives you your exact number rather than an estimate. If you want to adjust your own withholding, the IRS’s Tax Withholding Estimator can help you fill out a new W-4.

Hourly wage converted to weekly, monthly, and annual gross pay (before taxes, based on a standard 40-hour week):

Hourly Wage Weekly Gross (40 hrs) Monthly Gross Annual Gross (2,080 hrs/yr)
$15.00$600$2,600$31,200
$16.00$640$2,773$33,280
$17.00$680$2,947$35,360
$18.00$720$3,120$37,440
$20.00$800$3,467$41,600
$24.00$960$4,160$49,920
$30.00$1,200$5,200$62,400

Texas payroll facts at a glance (2026)

Core Texas and federal payroll tax rules for 2026, and who each one affects:

Payroll Item 2026 Rule or Rate Who It Affects
Texas State Income Tax None (0.00%) All employees and employers
Social Security (FICA) 6.2% employee, 6.2% employer, up to $184,500 wage base Shared
Medicare (FICA) 1.45% employee, 1.45% employer, no wage cap, plus 0.9% Additional Medicare Tax on employee wages over $200,000 Shared
Federal Unemployment Tax (FUTA) 6.0% on the first $7,000 per employee, effectively 0.6% after the standard credit (Texas is not a 2026 credit-reduction state) Employer only
Texas Unemployment Tax (SUTA) New employers: 2.70%. Experienced employers: 0.32%–6.32%, on the first $9,000 per employee Employer only
Minimum Wage $7.25/hr (matches federal). Tipped employees: $2.13/hr cash wage plus tip credit up to $7.25 Hourly employees
Overtime 1.5x regular rate after 40 hours worked in a week (FLSA). No daily overtime rule Non-exempt hourly employees
Pay Frequency At least twice monthly (semimonthly) for most employees. Weekly or biweekly also allowed All employers
Final Paycheck Voluntary resignation: due on the next scheduled payday. Involuntary termination: due within 6 calendar days Separated employees
Workers’ Compensation Optional for private employers, the only state where this is true. Non-subscribers must file DWC Form-005, or within 30 days of hiring their first employee Private employers

Running payroll in Texas

A calculator handles one paycheck, but it won’t catch what adds up over a year, like the $9,000 SUTA wage base resetting every time you hire someone new, or overtime getting complicated once your crew is working across job sites and city lines.

Fingercheck handles Texas payroll tax, geofenced time tracking, and overtime in one platform, so when your team clocks in, the right taxes, job costs, and overtime rates are already applied.

See a demo

Texas Payroll FAQs

Does Texas have a state income tax?
Is overtime pay taxed at a higher rate in Texas?
What is the Texas unemployment tax (SUTA) rate for 2026?
Do Texas cities have their own minimum wage?
When is a final paycheck due in Texas?
Is workers’ compensation insurance required in Texas?

Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.

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