1. What Are Texas Paycheck Taxes?

Texas paycheck taxes consist of federal income tax and FICA taxes (Social Security and Medicare). Texas is one of the few states with no state income tax, which simplifies paycheck calculations for residents.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Federal\ Income\ Tax \) — Calculated using progressive tax brackets based on filing status
• \( FICA \) — Social Security (6.2% up to wage base) + Medicare (1.45% no limit)

Explanation: Federal tax uses marginal tax rates, while FICA taxes are flat percentages with a cap on Social Security contributions.

3. Understanding Texas Tax Structure

Details: Texas residents pay only federal taxes - no state income tax. However, Texas has higher property and sales taxes to compensate for the lack of state income tax revenue.

4. Using the Calculator

Tips: Enter your gross income, select your filing status and pay period. The calculator will estimate your federal tax, FICA contributions, and total tax burden.

5. Frequently Asked Questions (FAQ)

Q1: Why no state income tax in Texas?
A: Texas state constitution prohibits state income tax. The state relies on sales tax, property tax, and oil/gas revenues instead.

Q2: What is the FICA wage base limit?
A: For 2024, Social Security tax applies only to the first $160,200 of earnings. Medicare tax has no upper limit.

Q3: Are there additional Medicare taxes?
A: High earners (over $200,000 single / $250,000 married) pay an additional 0.9% Medicare tax on excess earnings.

Q4: How accurate is this calculator?
A: This provides estimates. Actual withholding may vary based on W-4 allowances, deductions, credits, and other factors.

Q5: What other taxes do Texans pay?
A: While no state income tax, Texans pay sales tax (6.25% state + local), property taxes, and various fees and excise taxes.