How Texas Payroll Taxes Work: Complete Guide
Understand zero state income tax, federal withholding, and FICA deductions in the Lone Star State.
1. The Texas 0% State Income Tax Advantage
Texas voters approved a constitutional amendment prohibiting personal state income tax. This means workers keep a higher percentage of their earnings compared to high-tax states like California (up to 13.3%) or New York (up to 10.9%).
2. What You Still Pay on a Texas Paycheck
Every employee in Texas remains subject to federal employment taxes administered by the IRS:
- Federal Income Tax: Progressive tax applied to taxable income above your standard deduction ($15,000 for single filers in 2026).
- Social Security: 6.2% withheld on wages up to the annual limit.
- Medicare: 1.45% on all earnings, plus 0.9% additional surtax on income over $200,000 for single taxpayers.
3. Paycheck Frequency Comparisons
Take-home pay varies slightly by payroll frequency due to pay period counts:
- Bi-weekly (Every 2 weeks): 26 paychecks per year.
- Semi-monthly (Twice a month): 24 paychecks per year (typically 15th & last day).
- Monthly: 12 paychecks per year.
- Weekly: 52 paychecks per year.