1. What is This Calculator?

This calculator estimates your after-tax salary in Texas (no state income tax) by calculating federal income tax and FICA (Social Security and Medicare) deductions from your gross annual income.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual income before taxes
• Federal Tax — Calculated using 2023 IRS tax brackets
• FICA — Social Security (6.2% up to $160,200) + Medicare (1.45% + 0.9% for income over $200,000)

3. Texas Tax Considerations

Key Point: Texas has no state income tax, so only federal taxes and FICA are deducted from your gross pay.

4. Using the Calculator

Instructions: Enter your gross annual salary in USD. The calculator will estimate your federal tax, FICA deductions, and final net pay.

5. Frequently Asked Questions (FAQ)

Q1: Why does it say "Ontario" in the title?
A: This appears to be a typo in the original specification. The calculator is specifically for Texas which has no state income tax.

Q2: Are other deductions considered?
A: This calculates only federal tax and FICA. Other deductions (retirement, health insurance, etc.) would further reduce net pay.

Q3: How accurate is this calculator?
A: It provides a good estimate but doesn't account for tax credits, deductions, or special circumstances. Consult a tax professional for precise calculations.

Q4: What about self-employment taxes?
A: Self-employed individuals pay both employer and employee portions of FICA (15.3% total), which isn't accounted for here.

Q5: Are local taxes considered?
A: No local taxes are included in this calculation as Texas has no state or local income taxes.