Texas Paycheck Calculator

Does Texas have state income tax?

No — Texas is one of nine states with no state income tax (alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming). The Texas Constitution prohibits a personal income tax. Instead, Texas funds its government primarily through sales tax (6.25% state rate) and property taxes (among the highest in the US, averaging 1.7–2%).

How does Texas compare to California for take-home pay?

A Texas resident earning $100,000 takes home roughly $72,000–$75,000 vs. $65,000–$68,000 in California — a difference of $5,000–$7,000/year, mainly from CA state income tax (at $100K, CA tax is about $5,000–$6,000). However, Texas property taxes are ~$3,500–$5,000/year higher on a median home, partially narrowing the gap for homeowners.

Are there any Texas payroll taxes I should know about?

Employers pay Texas Unemployment Insurance (SUI) — employees do not contribute. There's no Texas SDI or similar employee-side payroll tax. The only deductions from a Texas paycheck are federal income tax, Social Security (6.2%), Medicare (1.45%), and any voluntary deductions.

Should I increase my 401k contribution in Texas?

In Texas — where there is no state income tax — 401k contributions only reduce federal taxable income, not state. The math is the same as any other state for federal purposes. However, Texas workers often feel their paychecks are larger (due to no state tax), making it psychologically easier to increase 401k contributions. Max contribution is $23,000 in 2024.