1. What is Texas Income Tax?

Texas has no state income tax, but residents still pay federal income taxes and FICA (Social Security and Medicare) taxes. This calculator helps estimate these tax obligations based on ADP salary information.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

3. Understanding Texas Tax Structure

Details: While Texas has no state income tax, it relies more on property taxes and sales taxes. Federal tax obligations remain significant for Texas residents.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't Texas have state income tax?
A: Texas chooses to fund government through other means like property taxes, sales taxes, and oil/gas revenues.

Q2: What is FICA?
A: Federal Insurance Contributions Act tax that funds Social Security and Medicare programs.

Q3: Are there local taxes in Texas?
A: Some cities and counties may have local sales taxes, but no local income taxes.

Q4: How accurate is this calculator?
A: It provides estimates based on standard deductions. Actual tax may vary based on specific circumstances.

Q5: What about other deductions?
A: This calculator shows basic tax obligations. Retirement contributions, itemized deductions, and credits aren't included.