Texas Paycheck Calculator
Calculate your Texas take-home pay for 2026. Texas has no state income tax — your paycheck deductions are federal income tax, FICA, and any pre-tax 401(k) or HSA. See exactly how much more you keep vs high-tax states.
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How Texas Paychecks Work — No State Income Tax
Texas is one of nine U.S. states with no state income tax (along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming). For wage earners, this is a substantial paycheck advantage — an $85,000 single filer in Texas takes home approximately $66,500 per year vs $61,500 in California or $59,800 in NYC. The same salary buys 8–10% more take-home pay simply by living in Texas. The Texas Constitution explicitly prohibits state income tax under Article 8, Section 24, so this advantage is locked in unless a constitutional amendment passes a statewide vote.
Texas paycheck deductions are limited to federal income tax, FICA payroll taxes (6.2% Social Security on wages up to $168,600 + 1.45% Medicare on all wages, plus 0.9% additional Medicare over $200K single), pre-tax employee benefits (401k, HSA, Section 125 health premiums), and any post-tax deductions you elect (Roth IRA, life insurance, garnishments). There is no state SDI, no state PFL, and no local income tax in any Texas city.
Texas vs Other States — The Take-Home Advantage
Texas residents save substantially over high-tax states for equivalent income, but the trade-off is property taxes — Texas has the 7th-highest effective property tax rate in the U.S. at approximately 1.74% per taxfoundation.org. For a $300,000 home, Texas property tax averages $5,200/year versus $1,650/year in California (Prop 13 cap) — a $3,550 swing. So the income-tax advantage shrinks for homeowners. Renters and high earners benefit most from Texas residency.
Sales Tax + Property Tax — The Hidden Texas Costs
Three offsets to factor in:
- State sales tax: 6.25% baseline + local up to 2% = max 8.25%. Annual sales tax burden for a typical earner runs $1,500–$2,500.
- Property tax: No state property tax, but local rates average 1.74%. Average Texas home now exceeds $300K, putting average annual property tax above $5,000 — among the highest in the U.S.
- Franchise tax (margin tax): Affects business owners only — 0.375%–0.75% of margin on businesses with $1.23M+ revenue. Most W-2 employees never see this.
For a high-income W-2 employee renting in Texas, the no-income-tax savings of $4K–$15K annually exceed all offsets. For a homeowner, it's typically a wash with California or a moderate gain over NYC residents.
Major Texas Cities — Cost of Living Differences
Take-home pay is the same across all of Texas (no city tax, no county income tax), but cost of living varies. Austin and Dallas rank near the U.S. average for cost of living. Houston is below average. San Antonio and El Paso are well below average. A $100K Texas salary stretches further in San Antonio than in Austin — average rent for a 1-bed apartment is $1,700 in Austin vs $1,150 in San Antonio per recent rental data. Compare cost of living before assuming the no-income-tax advantage equals the same purchasing power.
Last updated: May 2026. Federal rates per IRS Publication 15-T. Property and sales tax data per taxfoundation.org. Texas has no state withholding form — federal W-4 alone determines withholding.