Texas Employer Payroll Tax Calculator

2026 Texas Payroll Tax Calculator

Texas Payroll Tax Calculator

Estimate Texas take-home pay and employer payroll cost with federal income tax withholding, FICA, FUTA, and Texas unemployment tax. Texas has no employee state income tax, so this calculator puts the focus where Texas payroll actually gets complicated: employer UI rate choices, wage bases, and federal withholding.

Payroll Inputs

Rates refreshed: May 26, 2026

Pay Setup

Gross pay and frequency

Pay type

Pay frequency

YTD taxable wages before this check Used for Social Security, Additional Medicare, Texas UI, and FUTA wage bases.

Annual salary

Hourly rate

Regular hours this check

Overtime hours this check For salary mode, overtime uses annual salary converted to hourly.

Double-time hours this check

Bonus, commission, or extra pay

Deductions

Amounts withheld from this paycheck

Pre-tax benefits Health, FSA, HSA, or cafeteria deductions assumed to reduce income tax and FICA wages.

Pre-tax retirement Traditional 401(k) style deferrals reduce federal income-tax wages but are still estimated for FICA.

Post-tax deductions

Federal W-4

IRS 2026 automated method

Federal filing status

W-4 Step 2 checkbox Federal income tax exempt

Step 3 annual credits

Step 4(a) other income

Step 4(b) extra deductions

Step 4(c) extra withholding

Use federal supplemental flat rate for bonus

Texas Employer UI

Employer-paid state unemployment tax

Texas UI rate preset

Custom effective UI rate Use the employer's TWC tax rate notice when known.

Net FUTA rate Typical net rate after maximum credit is 0.6%; adjust if a credit reduction applies.

General Tax Rate (GTR)

Replenishment Tax Rate (RTR)

Obligation / interest assessment

Deficit Tax Rate (DTR)

ETIA

Other employer load Optional percentage for workers comp, benefits, or local payroll cost.

Employee Withholding

Federal income tax$0.00

Social Security$0.00

Medicare$0.00

Additional Medicare$0.00

Texas state income tax$0.00

Post-tax deductions$0.00

Taxable Wage Bases

FIT taxable wages$0.00

FICA taxable wages$0.00

Social Security taxed this check$0.00

Texas UI taxed this check$0.00

FUTA taxed this check$0.00

Effective Texas UI rate used0.00%

Employer Cost

Employer Social Security$0.00

Employer Medicare$0.00

Texas unemployment tax$0.00

FUTA$0.00

Other employer load$0.00

Employer tax cost$0.00

2026 Texas Payroll Rule Snapshot

For Texas payroll estimates

Texas income tax No employee state withholding Texas payroll still has federal income tax, Social Security, Medicare, and employer unemployment tax.

Texas unemployment $9,000 wage base State unemployment tax is employer-paid and applies to the first $9,000 per employee per year.

2026 UI rates 0.32%-6.32% TWC lists a 2.70% entry-level rate, 1.20% average rate, and 0.99% average experience rate.

Federal FICA 6.2% + 1.45% Social Security applies to $184,500; Medicare has no base and employee Additional Medicare starts above $200,000.

Tax	Who pays	2026 rule used	Calculator treatment
Federal income tax	Employee withholding	IRS Publication 15-T automated percentage method.	Annualizes taxable wages, applies W-4 Step 2, Step 3, Step 4(a), Step 4(b), and Step 4(c), with optional flat supplemental treatment for bonuses.
Social Security and Medicare	Employee and employer	Social Security 6.2% each to $184,500; Medicare 1.45% each with no wage base; employee Additional Medicare 0.9% above $200,000.	Uses YTD wages before this check to apply Social Security and Additional Medicare thresholds.
Texas state income tax	None	Texas has no state individual income tax withholding layer for wages.	Always shows $0.00 for Texas employee income tax and excludes any Texas state W-4 controls.
Texas unemployment tax	Employer	TWC 2026 taxable wage base $9,000; entry-level rate 2.70%; minimum 0.32%; maximum 6.32%.	Lets employers choose a preset, enter a custom rate, or build the rate from GTR, RTR, OA, DTR, and ETIA components.
FUTA	Employer	Federal unemployment tax generally applies to the first $7,000 of wages; typical net rate after maximum state credit is 0.6%.	Uses YTD wages before this check and lets the employer change the net FUTA rate.

This calculator is a planning estimate, not payroll tax, legal, or accounting advice. Real payroll can differ because of wage-type exemptions, taxable fringe benefits, pre-tax deduction eligibility, multi-state work, tipped wages, supplemental wage handling, worker classification, employer-specific TWC rate notices, and FUTA credit reduction status.

Primary references: IRS Publication 15-T (2026), IRS Publication 15 (2026), TWC unemployment tax rates, TWC 2026 tax rate components, TWC unemployment tax basics, and Texas Governor economic overview.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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