1. What is the Salary Calculator?

This calculator estimates your net pay in Texas after federal taxes and FICA (Social Security and Medicare) deductions. Texas has no state income tax, so only federal taxes apply.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated using progressive tax brackets (10%, 12%, 22%, etc.)
• FICA — 6.2% Social Security (up to $176,100) + 1.45% Medicare (plus 0.9% additional Medicare tax for high earners)

3. Texas Tax Information

Details: Texas is one of nine states with no state income tax. However, residents still pay federal income taxes and FICA taxes (Social Security and Medicare).

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: What is the Social Security wage base limit?
A: For 2024, Social Security tax applies only to the first $176,100 of earnings. There is no limit for Medicare tax.

Q3: Who pays the additional Medicare tax?
A: Single filers earning over $200,000 and married couples filing jointly earning over $250,000 pay an extra 0.9% Medicare tax.

Q4: Are there other deductions not included here?
A: Yes, this calculator doesn't account for other deductions like health insurance, retirement contributions, or local taxes.

Q5: How often are tax brackets updated?
A: The IRS typically adjusts tax brackets annually for inflation. This calculator uses 2024 tax brackets.