1. What is this Calculator?

This calculator estimates your net salary in Texas after federal taxes and FICA (Social Security and Medicare) deductions. Note that Texas has no state income tax.

2. How Taxes are Calculated

The calculator uses the following formulas:

Where:

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

3. Texas Tax Information

Key Points: Texas has no state income tax, but residents still pay federal income tax and FICA taxes. Property taxes and sales taxes in Texas tend to be higher than average.

4. Using the Calculator

Instructions: Enter your gross annual salary and select your filing status. The calculator will estimate your federal tax, FICA deductions, and net salary.

5. Frequently Asked Questions (FAQ)

Q1: Why is car mentioned in the title if it's irrelevant?
A: The title follows a specific naming convention, but car ownership doesn't affect Texas income tax calculations.

Q2: Are local taxes included?
A: No, this calculator only considers federal taxes and FICA. Some Texas cities may have local taxes.

Q3: What about deductions and credits?
A: This is a simplified calculation. For precise estimates, consult a tax professional.

Q4: Is Social Security tax calculated on all income?
A: No, only up to the wage base limit ($147,000 in 2023).

Q5: Why no state income tax in Texas?
A: Texas generates revenue through other means like property taxes and sales taxes instead of income tax.