1. What is Texas Wage Taxation?

Texas has no state income tax, so wage earners only pay federal income tax and FICA (Social Security and Medicare) taxes. This calculator helps estimate these obligations.

2. How Does the Calculator Work?

The calculator uses current federal tax brackets and FICA rates:

Where:

• Federal Tax — Based on IRS tax brackets for your filing status
• FICA — 6.2% Social Security (on first $160,200) + 1.45% Medicare (plus 0.9% for high earners)

3. Importance of Tax Calculation

Details: Understanding your tax obligations helps with financial planning, budgeting, and ensuring proper withholdings to avoid penalties.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why no state tax in Texas?
A: Texas generates revenue through other means like property taxes and sales taxes instead of a state income tax.

Q2: What's not included in this calculation?
A: Local taxes, deductions, credits, or other potential tax obligations are not included.

Q3: Are FICA rates the same for everyone?
A: Yes, except for the additional 0.9% Medicare tax for high earners ($200k single/$250k married).

Q4: How accurate is this calculator?
A: It provides estimates based on standard tax brackets. Your actual tax may differ based on deductions, credits, etc.

Q5: When are Texas taxes due?
A: Federal taxes follow the standard April 15 deadline (or next business day if it falls on a weekend/holiday).