1. What is Texas Tax Calculation?

Texas has no state income tax, but residents still pay federal income tax and FICA (Social Security and Medicare) taxes. This calculator estimates these taxes based on your salary and filing status.

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% on first $147,000) + Medicare (1.45% + 0.9% for high earners)

3. Importance of Tax Calculation

Details: Understanding your tax burden helps with financial planning, budgeting, and ensuring proper withholding from your paycheck.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't Texas have state income tax?
A: Texas generates revenue through other taxes like property taxes and sales taxes instead of a state income tax.

Q2: Are there local taxes in Texas?
A: Some cities and counties may have local sales taxes, but there are no local income taxes.

Q3: Is this calculator accurate for all situations?
A: This provides an estimate. Actual taxes may vary based on deductions, credits, and other factors.

Q4: What about self-employment taxes?
A: Self-employed individuals pay both employer and employee portions of FICA (15.3% total).

Q5: When are taxes due in Texas?
A: Federal taxes follow the IRS schedule (typically April 15). Texas doesn't have state income tax deadlines.