1. What is ADP Salary Tax Calculator?

This calculator estimates taxes on salary in Texas using ADP tool methodology. It calculates Federal Income Tax and FICA (Social Security and Medicare) taxes for Texas residents.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax - Calculated based on IRS tax brackets and filing status
• FICA - Social Security (6.2% up to wage base) + Medicare (1.45%)

3. Understanding Texas Taxes

Details: Texas has no state income tax, so residents only pay federal taxes and FICA. The calculator focuses on these two components.

4. Using the Calculator

Tips: Enter your annual salary and select your filing status. The calculator will estimate your federal tax and FICA contributions.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this calculator include state tax?
A: Texas doesn't have a state income tax, so only federal taxes and FICA apply.

Q2: Is this calculator accurate for all situations?
A: This provides estimates. Actual tax liability may vary based on deductions, credits, and other factors.

Q3: What's the Social Security wage base?
A: For 2023, Social Security tax applies only to the first $147,000 of wages.

Q4: Are there additional Medicare taxes?
A: High earners may pay an additional 0.9% Medicare tax on wages above $200,000 (single) or $250,000 (married).

Q5: How often should I check my tax withholding?
A: Review whenever your financial situation changes (marriage, raise, new job) or at least annually.