Texas Paycheck Calculator

So, you reside in Texas, the new month is about to begin, and you are wondering what your take-home pay will be. If this is you and you want to calculate your paycheck, we are here to help. 

Texas has a thriving economy with massive businesses, employers, and employees. According to the Texas Comptroller's office, the state collects more than $250 billion annually from over 60 diverse sources, including various taxes, fees, and assessments.

However, the fun fact about Texas is that the state does not apply income taxes. So, you can keep maximum pay to yourself. 

The absence of income tax makes paycheck calculation easier. This article will help you calculate your paycheck in Texas.

Registering a Business in Texas

1. As registering a business in Texas can be complex, seeking professional advice will help. You need to start by knowing and defining your business type, for instance, LLC, company, etc.
2. Once you have pinned down your business category, the following step is registration. You must file your business registration documents with the Texas Secretary of State's office. You can do it online through the Secretary of State's website, or you can do it manually. 
3. After this, you need to obtain specific licenses. Licenses and permits vary for each type of business. So, you must get these licenses and permits from state or local government agencies according to your business type. 
4. Next, you must register your business with the Texas Comptroller of Public Accounts. After this, you are good to go. And you may apply for insurance. You can do it after completing your entire registration procedure. 

Texas Tax Overview

The lone star state does not carry the hefty taxes that most states do; however, it still has some taxes one has to pay depending on the lifestyle one leads.

Texas has no income tax and no real estate or inheritance tax. However, there is real estate tax and levies.

Taxable Base Wage

Texas's taxable wage is $9,000 per year in 2024, which has mostly stayed the same from the previous years.

Year	Texas Taxable Base Wage
2024	$9,000
2023	$9,000
2022	$9,000

SUTA Rates

The unemployment tax rates were issued on January 30th, 2024, and are slightly different from the previous years. 

Year	Texas SUTA Rates
2024	0.25% to 6.25%
2023	0.23% to 6.23%
2022	0.31% to 6.23%

FUTA Rates

The employer is responsible for paying FUTA tax on behalf of their employees. The tax is not the responsibility of your staff. The rates for this tax are the same nationwide.

Year	FUTA Rates
2024	6% for first $7000
2023	6% for first $7000
2022	6% for first $7000

FICA Rates

Government-provided benefits like  Social Security and Medicare taxes are paid for by FICA. Your pay goes through FICA for deductions before the Federal taxes.

Year	Texas FICA Rates
2024	7.65%
2023	7.65%
2022	7.65%

Taxes Paycheck Calculator

Here is your free Texas paycheck calculator which is also suitable for Austin, Dallas, San Antonio, Houston:

Texas Salary Calculator Scenario

• Employee: Jane Doe
• Filing Status: Single
• Gross Salary: $60,000 per year (or $2,500 semi-monthly)
• Pay Frequency: Semi-monthly (24 paychecks per year)
• Federal Allowances: 1
• State Allowances: 0 (Texas has no state income tax)

Paycheck Calculations

1. Gross Paycheck:
• Annual Salary / Number of Paychecks = Gross Paycheck per Period
• $60,000 / 24 = $2,500
2. Federal Income Tax Withholding:
• Use IRS Publication 15-T to determine the withholding amount based on Jane's income, filing status, and allowances. (This can vary based on multiple factors and is best done using an online calculator or payroll software).
• For this example, let's assume the federal income tax withholding is $350.
3. FICA Taxes (Social Security and Medicare):
• Social Security Tax: 6.2% of Gross Paycheck
• $2,500 * 0.062 = $155
• Medicare Tax: 1.45% of Gross Paycheck
• $2,500 * 0.0145 = $36.25
• Additional Medicare Tax (if applicable): If Jane's income exceeds $200,000, she'll be subject to an additional 0.9% Medicare tax on the excess amount. Since her income is below this threshold, it doesn't apply here.
4. Total Deductions:
• Federal Income Tax + Social Security Tax + Medicare Tax = Total Deductions
• $350 + $155 + $36.25 = $541.25
5. Net Paycheck:
• Gross Paycheck - Total Deductions = Net Paycheck
• $2,500 - $541.25 = $1,958.75

Result: Jane Doe's net paycheck in Texas, after federal taxes and FICA deductions, would be $1,958.75.

Important Notes

• This is a simplified example. Actual calculations can be more complex and may involve additional deductions, such as health insurance premiums or retirement contributions.
• Texas has no state income tax. Therefore, there are no state income tax withholdings in this example.
• Use a payroll calculator or software: Online tools and payroll software can streamline the process and ensure accuracy in calculations.

Texas Child Support Calculator

Scenario

• Parent: John Doe
• Net Monthly Resources: $5,000
• Number of Children: 2

Texas Child Support Calculation 

Texas child support guidelines stipulate a percentage of net resources based on the number of children:

• 1 child: 20%
• 2 children: 25%
• 3 children: 30%
• 4 children: 35%
• 5+ children: 40%

Since John has 2 children, his child support obligation would be calculated as follows:

• $5,000 (Net Monthly Resources) * 0.25 (Percentage for 2 children) = $1,250

Result: John Doe's estimated monthly child support payment would be $1,250.

Important Notes

• This is a simplified example. Actual calculations can be more complex and may involve additional factors, such as the other parent's income, the amount of time each parent spends with the child, and any special needs of the child.
• Net resources are capped at $9,200. The Texas guidelines only apply to net monthly resources up to $9,200. If John's income were higher, his child support would be calculated differently.
• Courts have discretion. The final child support amount is determined by a court, which may deviate from the guidelines based on the specific circumstances of the case.

Using the Texas Child Support Calculator

The Texas Attorney General's Office provides an online child support calculator: https://csapps.oag.texas.gov/monthly-child-support-calculator

This tool can help you get a more accurate estimate of your child support obligation by taking into account additional factors that are not covered in this simplified example.

Remember: It's always best to consult with an attorney or family law professional for personalized advice regarding child support calculations.

Texas Labor Laws

Overtime 

Employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. There are certain exemptions for specific professions and salaried employees.

Payday Requirements

• Employers must pay non-exempt employees (hourly workers) at least twice a month on regularly scheduled paydays.
• **Final Paycheck:**Employers must pay final wages to terminated employees in a timely manner, depending on the reason for termination.

Meal and Rest Breaks

• Texas law does not mandate meal or rest breaks for employees. However, any breaks of 20 minutes or less are considered part of the workday and must be paid.

Employment Discrimination

• Texas follows federal laws prohibiting discrimination based on race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information.

Right-to-Work

• Texas is a "right-to-work" state, meaning employees cannot be required to join a union or pay dues as a condition of employment.

Unemployment Benefits

• Texas provides unemployment benefits to eligible workers who have lost their jobs through no fault of their own.

Workers' Compensation

• Texas employers are generally required to carry workers' compensation insurance to provide benefits to employees injured on the job.

Additional Considerations

• Tipped Employees: Texas follows the federal minimum wage of $2.13 for tipped employees. However, the combined total of tips and hourly wages must meet or exceed the regular minimum wage.
• Exemptions: Certain professions, such as agricultural workers and independent contractors, may be exempt from some labor laws.

Texas Paystub Generator

Payroll processing software compiles workers' gross monthly pay, subtracts mandatory withholdings, and displays each worker's net pay. Check out our Paystub Generator.

Texas Tax Resources

Texas Comptroller of Public Accounts

Website: comptroller.texas.gov/
Phone number: 1 800-252-5555

Address: Texas Comptroller of Public Accounts P.O. Box 13528, Capitol Station

Austin, Texas 78711-3528

FAQs

Q1: Does Texas have a state tax on a paycheck?

No, the state does not impose a state income tax on paychecks. It means an employee can take a maximum percentage of the salary home. It is also easy to calculate paychecks in Texas because there is no state tax. 

 Q2: Does Texas require a pay stub?

A pay stub shows detailed information about the employee's gross paycheck and the deductions. The Texas state law compels employers to provide pay stubs to their employees. It helps the employees understand the tax and other deductions in their salary. Moreover, the paystub increases transparency in the salary system.

Q3: What is the purpose of using a paycheck calculator in Texas?

A San Antonio paycheck calculator will help you estimate your take-home salary. Your paycheck displays your salary according to your working hours or months. After this, several deductions are made to this salary. The paycheck calculators help employees estimate the remaining salary after tax deductions. 

The Dallas paycheck calculator will subtract all the taxes applied to the wages in Texas. After this, it will calculate the remaining amount that will be your take-home money.

Conclusion

If you want to calculate your take-home income in Texas, our article will help you. Our Texas Paycheck Calculator is a valuable tool for employers and employees in the state of Texas. So, if you are trying to manage your finances effectively and efficiently, our article can assist you.