1. What is Texas Payroll Tax?

Texas payroll taxes consist primarily of federal income tax and FICA (Social Security and Medicare) taxes. Texas is one of the few states with no state income tax, making federal taxes the main component of payroll deductions.

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 limit) + Medicare (1.45% with additional 0.9% for high earners)

3. Importance of Payroll Tax Calculation

Details: Accurate payroll tax calculation ensures proper withholding and compliance with tax laws. It helps employees understand their take-home pay and employers meet their tax obligations.

4. Using the Calculator

Tips: Enter your annual salary in USD, select your filing status, and click calculate. The calculator will estimate your federal tax and FICA contributions.

5. Frequently Asked Questions (FAQ)

Q1: Does Texas have state income tax?
A: No, Texas is one of the few states with no state income tax.

Q2: What's the Social Security wage base limit?
A: For 2023, Social Security tax applies to the first $147,000 of wages.

Q3: Are there local taxes in Texas?
A: Some Texas cities may have local taxes, but these are not included in this calculator.

Q4: How accurate is this calculator?
A: It provides estimates based on standard tax brackets. Your actual taxes may vary based on deductions, credits, and other factors.

Q5: When are payroll taxes due?
A: Employers must generally deposit federal payroll taxes monthly or semi-weekly, depending on the amount.