1. What is Texas Salary Tax?

Texas has no state income tax, but residents still pay federal income tax and FICA (Social Security and Medicare) taxes. This calculator helps Pakistani users estimate their tax burden in Texas for 2025-2026.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax - Calculated using 2025 IRS tax brackets
• FICA - Social Security (6.2% up to wage base) + Medicare (1.45% + 0.9% for high earners)

3. Tax Components

Federal Income Tax: Progressive tax based on 2025 brackets and filing status.

FICA Taxes: Flat rate payroll taxes that fund Social Security and Medicare programs.

4. Using the Calculator

Instructions: Enter your annual salary in USD and select your filing status. The calculator will estimate your federal tax, FICA contributions, total tax burden, and net income.

5. Frequently Asked Questions (FAQ)

Q1: Why no state tax in Texas?
A: Texas is one of several U.S. states with no state income tax, relying instead on other revenue sources like sales and property taxes.

Q2: Are these tax rates final for 2025?
A: Tax brackets are adjusted annually for inflation. These are projections based on current law and inflation estimates.

Q3: Do Pakistani citizens pay different rates?
A: No, U.S. taxes are based on residency and income source, not citizenship. All Texas residents pay the same rates.

Q4: What about tax treaties?
A: The U.S.-Pakistan tax treaty may affect certain types of income. Consult a tax professional for specific cases.

Q5: Are there deductions available?
A: This calculator shows gross tax liability. Actual taxes may be lower with deductions and credits not accounted for here.