Texas Paycheck Calculator

Texas Paycheck Calculator

One of the benefits of residing and working in Texas is the absence of a state income tax. Consequently, only federal income taxes apply to your salary in this state. Additionally, it is important to mention that no cities within Texas enforce any local income tax.

How Texas Paycheck Tax Calculator Work?

The amount you receive in your paychecks each year may not align with your hourly wage or annual salary because your employer deducts taxes from your earnings. Both you and your employer are obligated to contribute 6.2% of your earnings for Social Security taxes and 1.45% for Medicare taxes, which are collectively known as FICA taxes.

Important Note: The Stubcreator provides a paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.

Texas Net Paycheck Calculator

If you reside in Texas and earn an annual gross pay of $58,146.00, your net pay, or take-home pay, will be $48,480 after accounting for tax deductions of 16.62%, which amounts to $9,666.19. These deductions encompass various taxes, including 8.97% for federal income tax, totalling $5,218.02, 0.00% for state income tax, resulting in $0.00, 6.20% for social security tax, summing up to $3,605.05, and 1.45% for Medicare, which equals $843.12.

Taxable Base Wage

The taxable wage in Texas for 2024 is $9,000, essentially unchanged from the prior year.

SUTA Rates

The rates for unemployment taxes were released on January 30, 2024, and they varied slightly from those of the previous years.

FUTA Rates

The FUTA tax must be paid by the employer on behalf of its workers. Your workforce is not accountable for the tax. This tax has uniform rates across the country.

FICA Rates

In Texas, the FICA tax rates for 2024 are as follows:

For Employees and Employers:

• Social Security Tax: 6.2%
• Medicare Tax: 7.65%

Additional Medicare Taxes

• Employees: 1.45%

Texas Payroll Tax Withholding:

The unemployment insurance tax is the sole payroll tax that employers in Texas are required to pay at the state level. This tax is a component of the national program that the US Department of Labor oversees. In Texas, state income tax is not required to be paid by either employers or employees.

Texas Paystub Generator

• The completion of Form W-4 is the first crucial step in the process of Texas payroll taxes, as employees must provide the necessary information. This particular form plays a vital role in calculating the precise amount to be withheld.
• There is no Personal Income Tax Rate in Texas.
• Employees must ensure that they update their Form W-4 when they experience life-changing circumstances like marriage, divorce, the birth or adoption of a child, and other similar events. This is necessary as these events can potentially affect their tax liabilities.