Texas takes nothing from your wages. Only federal tax and FICA come out, which makes a Texas paycheck one of the largest in the country at any given salary.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
Texas is one of nine states with no individual income tax on wages, and the Texas Constitution makes it difficult to introduce one — a statewide vote would be required. There is no local or city income tax anywhere in the state either, which is not true of every no-income-tax state.
That means the only lines on your pay stub are federal income tax, Social Security at 6.2% up to $184,500 of wages, and Medicare at 1.45% with no ceiling. Nothing gets added on top.
The absence of an income tax does not make Texas a low-tax state across the board — it shifts the burden rather than removing it. Property taxes in Texas are among the highest effective rates in the United States, and for homeowners they frequently exceed what an income tax would have cost at the same salary.
Sales tax is the other lever. The state rate is 6.25%, and local jurisdictions can add up to 2% on top, bringing the combined rate to 8.25% in most metros including Houston, Dallas, Austin and San Antonio.
If you are comparing a Texas offer against one in a state with income tax, compare total cost including property tax rather than paycheck against paycheck. A renter usually comes out well ahead in Texas; a homeowner in a high-value district sometimes does not.
If you relocate mid-year, you will owe income tax to your former state on the income you earned while resident there, and file a part-year return. Income earned after you establish Texas residency is not taxed by any state. This calculator models a full year of Texas residency.
No. Unlike Ohio, Pennsylvania or New York, no Texas municipality levies its own income tax. Your paycheck deductions are federal only.
Not for wage income — there is no individual return to file. You file only your federal return.
On the same gross salary, yes, and by a wide margin at higher incomes. Whether you are better off overall depends on housing costs and property tax, which are the two places Texas takes the money back.