1. What is Net Pay?

Net pay (take-home pay) is the amount of money you receive after all deductions from your gross salary. In Texas, this includes federal income tax and FICA (Social Security and Medicare) taxes, but no state income tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Federal Tax — Calculated using 2023-24 IRS tax brackets
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Texas Tax Considerations

Details: Texas has no state income tax, but residents still pay federal taxes and FICA. Property and sales taxes in Texas tend to be higher to compensate for the lack of state income tax.

4. Using the Calculator

Tips: Enter your annual gross salary and select your filing status. The calculator will estimate your federal tax based on 2023-24 brackets and standard FICA deductions.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't Texas have state income tax?
A: Texas generates revenue through other means like higher property taxes, sales taxes, and oil/gas revenues.

Q2: Are there local taxes in Texas?
A: Some cities and counties may have local sales taxes, but these aren't deducted from paychecks like income taxes.

Q3: What about 401(k) or health insurance deductions?
A: This calculator shows pre-benefit deductions. For exact take-home pay, consult your payroll department.

Q4: Is FICA the same for everyone?
A: Social Security tax stops after $160,200 (2023), while Medicare has an additional 0.9% for high earners.

Q5: How accurate is this calculator?
A: It provides estimates based on standard deductions. Your actual tax may vary with credits, deductions, or special circumstances.