Texas Paycheck Calculator 2026 - No State Income Tax
Texas is one of nine states with no state income tax (0% state rate). Your paycheck is only reduced by federal income tax and FICA (7.65% for Social Security and Medicare). There is no state withholding line at all, which means Texas workers keep more of every dollar earned compared to most other states. Use the calculator below to estimate your per-period take-home pay for 2026.
Why Texas Paychecks Are Bigger
With no state income tax, Texas residents avoid the 3%-13%+ state tax bite that workers in most other states face. The only deductions from your paycheck are at the federal level.
On a $48,000 salary (Head of Household), a Texas worker takes home approximately $516 more per year than an identical worker in California, purely from the state income tax difference.
Texas makes up for the absence of income tax through other revenue sources. Retirees benefit from full exemption of pension income.
Texas local jurisdictions (cities, counties, transit authorities, and special purpose districts) may impose up to 2% additional sales tax on top of the 6.25% state rate, for a maximum combined rate of 8.25%. Property tax rates vary significantly by jurisdiction, with school districts, cities, counties, and special districts each levying their own rates.
How Your Texas Paycheck Is Calculated
- Gross pay: Your annual salary divided by the number of pay periods.
- Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
- Social Security: 6.2% on wages up to $184,500.
- Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
- State income tax: $0 - Texas has no state income tax.
Retirement Income in Texas
Texas fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Texas favorable for retirees from an income tax perspective.
How Texas Funds Itself Instead
Texas funds state government primarily through sales tax (6.25% state + up to 2% local), oil and gas severance (production) taxes, and the franchise (margin) tax on businesses. Texas's constitution bars a state property tax (Article 8, Section 24-a); the trade-off residents feel is high local property taxes levied by school districts, cities, counties, and special districts. The absence of a state income tax is also constitutionally prohibited.
- Sales tax
- Severance tax
- Franchise tax
While your paycheck has no state income tax line, these alternative revenue sources mean Texas residents pay taxes in other ways, particularly through consumption and property-based taxes.
Worked Examples
Example 1: $48,000/year - Head of Household, Semi-monthly
Profile: $48,000 annual salary, Head of Household filer, paid semimonthly (24 paychecks/year)
Federal income tax: -$104.50
Social Security: -$124.00
Medicare: -$29.00
Texas state income tax: -$0.00
Net take-home pay: $1,742.50 per paycheck ($41,820/year)
Effective total tax rate: 12.88%
Example 2: $42,000/year - Married Filing Jointly, Biweekly
Profile: $42,000 annual salary, Married Filing Jointly filer, paid biweekly (26 paychecks/year)
Federal income tax: -$37.69
Social Security: -$100.15
Medicare: -$23.42
Texas state income tax: -$0.00
Net take-home pay: $1,454.12 per paycheck ($37,807/year)
Effective total tax rate: 9.98%
Example 3: $95,000/year - Single, Monthly
Profile: $95,000 annual salary, Single filer, paid monthly (12 paychecks/year)
Federal income tax: -$1,005.83
Social Security: -$490.83
Medicare: -$114.79
Texas state income tax: -$0.00
Net take-home pay: $6,305.22 per paycheck ($75,663/year)
Effective total tax rate: 20.36%
Texas Tax Notes
- No state income tax - your paycheck deductions are federal only.
OBBBA Deductions
The OBBBA deductions for tips and overtime apply to your federal return regardless of state. Since Texas has no state income tax, there is no state-level conformity issue - you already pay $0 state tax on all income.