1. What is the Texas Salary Tax Calculator?

The Texas Salary Tax Calculator helps estimate your take-home pay after federal taxes and FICA (Social Security and Medicare) deductions. While Texas has no state income tax, residents still pay federal taxes.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated based on IRS tax brackets and your filing status
• FICA — Social Security (6.2% up to wage base) + Medicare (1.45% with additional 0.9% for high earners)

3. Understanding Texas Taxes

Details: Texas is one of few states with no state income tax, but residents still pay federal income tax, FICA taxes, property taxes, and sales taxes.

4. Using the Calculator

Tips: Enter your annual salary before taxes and select your filing status. The calculator will estimate your federal tax, FICA contributions, and net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't Texas have state income tax?
A: Texas generates revenue through other taxes like property taxes and sales taxes instead of a state income tax.

Q2: What is FICA?
A: FICA stands for Federal Insurance Contributions Act, which includes Social Security (6.2%) and Medicare (1.45%) taxes.

Q3: Are there local taxes in Texas?
A: While no state income tax, some cities may have local sales taxes that can add up to 2% to the state's 6.25% sales tax.

Q4: What about property taxes in Texas?
A: Texas has relatively high property taxes compared to other states, which helps fund local services without state income tax.

Q5: Is this calculator accurate for all situations?
A: This provides estimates only. For exact calculations, consider itemized deductions, credits, and other factors not included here.