Texas Salary Paycheck Calculator
Are you interested in your take-home pay in Texas? Our Texas Salary Paycheck Calculator provides a precise estimate of your net income after deductions. Whether you’re a current resident or considering relocating to the Bay State, knowing how your paycheck is distributed can help you manage your finances effectively.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Texas Taxes: What You Need to Know
Texas has a unique tax structure. It does not impose individual or corporate income taxes but utilizes various other taxes to generate revenue for government functions.
Key points about the state of Texas’s tax system include:
- Individual Income Tax: None
- Corporate Income Tax: None (state gross receipts tax applied)
- State Sales Tax Rate: 6.25%
- Average Combined State and Local Sales Tax Rate: 8.20%
- Effective Property Tax Rate: 1.47% (on owner-occupied housing)
- Estate and Inheritance Tax: None
- Gas Tax Rate: $0.20 per gallon
- Cigarette Excise Tax Rate: $1.41 per pack
- Per Capita Tax Collections: $4,822
- Per Capita State and Local Debt: $10,906
- Public Pension Funded Ratio: 77%
Major Taxes
- Sales and Use Tax: 6.25% on goods and taxable services
Severance Taxes
- Oil and Condensate: 4.6% of market value
- Natural Gas: 7.5% of market value
- Motor Vehicle Sales Tax: 6.25% (after trade-in allowance)
- Insurance Premium Taxes: 0.5% to 4.85% of gross premiums
- Motor Fuel Tax: $0.20 per gallon for gasoline and diesel
Sin Taxes
- Cigarette Tax: $1.41 per pack
- Mixed Beverage Taxes: 8.25% on consumers, 6.7% on businesses
- Franchise Tax: Applies to specific businesses (only about 160,000 filers typically owe)
Texas collects revenue from over 30 different taxes, supporting the education of more than 5.4 million public school students and health insurance for 5.7 million low-income residents.
An Overview of The Tax Withholdings
Federal, State, and Local Tax Withholding
Federal Tax Withholding: This is the amount withheld from your paycheck by your employer to cover your federal income tax obligations. The amount withheld depends on your income, filing status, and the number of allowances you claim on your W-4 form.
- State Tax Withholding: Texas does not have a state income tax, so the residents do not have state tax withholding.
- Local Tax Withholding: Texas does not impose local income taxes, so there is no local tax withholding.
FICA & State Insurance Taxes
- FICA Taxes: The Federal Insurance Contributions Act (FICA) tax includes Social Security and Medicare taxes. For 2024, the Social Security tax rate is 6.2% for employees and employers, up to a wage base of $168,600. The Medicare tax rate is 1.45% for employees and employers, with an additional 0.9% Medicare tax on wages over $200,000 for single filers (not matched by employers).
- State Insurance Taxes: Texas does not have state-specific insurance taxes that are withheld from employee paychecks.
Pre-Tax Deductions
- Medical Insurance: Premiums for employer-sponsored health insurance plans are typically deducted from your paycheck before taxes, reducing your taxable income.
- 401(k) Contributions: Contributions to a 401(k)-retirement plan are also pre-tax, meaning they are deducted from your gross income before federal income taxes are applied. For 2024, the contribution limit is $23,000.
- Health Savings Accounts (HSA): Contributions to an HSA are pre-tax and can be used to pay for qualified medical expenses. For 2024, the contribution limits are $4,150 for individual coverage and $8,300 for family coverage.
Tax Percentage Table
| Tax Type | Employee Rate | Employer Rate | Total Rate | Wage Base |
| Federal Income Tax | Varies by income | N/A | N/A | N/A |
| Social Security (FICA) | 6.2% | 6.2% | 12.4% | $168,600 |
| Medicare (FICA) | 1.45% | 1.45% | 2.9% | No limit |
| Additional Medicare | 0.9% (over $200,000) | 0% | 0.9% | No limit |
| 401(k) Contributions | Up to $23,000 | N/A | N/A | N/A |
| HSA Contributions | Up to $4,150 (individual) / $8,300 (family) |
Median household income in Texas
According to statista, the median household income in Texas was 79,060 U.S. dollars in 2023, up from 74,640 U.S. dollars the previous year.
Texas Tax Brackets 2024
Texas does not impose its state income tax, so residents only need to consider federal income tax brackets. Here are the federal tax brackets for 2024 for single filers, married couples filing jointly, and heads of household:
| Filing Status | Tax Rate | Income Bracket |
| Single | 10% | $0 to $11,600 |
| 12% | $11,600 to $47,150 | |
| 22% | $47,150 to $100,525 | |
| 24% | $100,525 to $191,950 | |
| 32% | $191,950 to $243,725 | |
| 35% | $243,725 to $609,350 | |
| 37% | Over $609,350 | |
| Married Filing Jointly | 10% | $0 to $23,200 |
| 12% | $23,200 to $94,300 | |
| 22% | $94,300 to $201,050 | |
| 24% | $201,050 to $383,900 | |
| 32% | $383,900 to $487,450 | |
| 35% | $487,450 to $731,200 | |
| 37% | Over $731,200 | |
| Head of Household | 10% | $0 to $16,550 |
| 12% | $16,550 to $63,100 | |
| 22% | $63,100 to $100,500 | |
| 24% | $100,500 to $191,950 | |
| 32% | $191,950 to $243,700 | |
| 35% | $243,700 to $609,350 | |
| 37% | Over $609,350 |
Example:
In Texas, you will pay $3,436 in taxes if you make $60,000 a year. There is an average tax rate of 5.73% and a marginal tax rate of 12% for you.
Income Tax Summary for $60,000 Salary in Texas
- Gross Income: $60,000
- Federal Income Tax: $3,436
- Marginal Tax Rate: 12%Effective Tax Rate: 5.73%
- Texas State Tax: $0
- Marginal Tax Rate: 0%
- Total Income Tax: $3,436
- After-Tax Income: $56,564
Texas generates revenue from sales and use taxes, property taxes, and corporate income taxes instead of taxing income. According to the Tax Foundation, Texas has the sixth-lowest tax burden among the 50 states and the District of Columbia as of 2022.
Frequently Asked Questions
No, the Texas Paycheck Calculator does not account for local taxes because Texas does not impose local income taxes. This simplifies the calculation process as you only need to consider federal taxes and any applicable FICA taxes (Social Security and Medicare).
Texas does not have state-specific income tax deductions since it does not impose a state income tax. However, federal deductions such as those for health insurance premiums, 401(k) contributions, and Health Savings Accounts (HSAs) are applicable and can be factored into the KEKA paycheck calculator.
Yes, the KEKA paycheck calculator is regularly updated to reflect the latest federal tax laws and rates. This ensures that your calculations are accurate and up-to-date with current tax regulations.
Since Texas does not have a state income tax, all income tax calculations are based solely on federal tax brackets and rates. This means that Texas residents only need to consider federal deductions and credits when calculating their taxable income.
However, do take into account 6.25 percent state sales tax rate and an average combined state and local sales tax rate of 8.20 percent.
The KEKA paycheck calculator allows you to input multiple sources of income. You can enter details for each job or additional income source to get a comprehensive estimate of your total tax liability and net pay. This feature helps ensure that your tax calculations accurately account for all your income.
The KEKA paycheck calculator can account for pre-tax deductions such as health insurance premiums, 401(k) contributions, and HSA deposits. These deductions reduce your taxable income, potentially lowering your overall tax burden. You can input these deductions into the calculator to see their impact on your take-home pay.
If you are married and filing jointly, the KEKA paycheck calculator allows you to select this filing status. It will adjust the standard deduction and tax brackets accordingly to provide an accurate estimate of your take-home pay. This ensures that your tax calculations reflect the benefits of filing jointly.
