1. What is Texas Wage Tax Withholding?

Texas has no state income tax, but employers must still withhold federal income tax and FICA taxes (Social Security and Medicare) from employee wages. This calculator helps estimate these withholdings.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated based on IRS tax brackets and filing status
• FICA — Social Security (6.2%) + Medicare (1.45%) taxes

Explanation: The calculator estimates federal tax based on your filing status and pay period, then adds the mandatory FICA contributions.

3. Understanding Texas Tax Structure

Details: While Texas has no state income tax, employees still pay:

• Federal income tax (progressive rates based on income)
• Social Security tax (6.2% on wages up to $147,000 in 2023)
• Medicare tax (1.45% on all wages, plus 0.9% for high earners)

4. Using the Calculator

Tips: Enter your gross pay amount, select your filing status and pay period. The calculator will estimate your federal tax and FICA withholdings.

5. Frequently Asked Questions (FAQ)

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

Q2: Are FICA taxes the same for everyone?
A: Yes, FICA rates are fixed, though Social Security tax stops after reaching the wage base limit.

Q3: How accurate is this calculator?
A: It provides estimates. Actual withholdings may vary based on additional factors like deductions and credits.

Q4: Do I need to pay local taxes in Texas?
A: Some Texas cities have local taxes, but these are not income taxes (typically sales taxes).

Q5: When are taxes due in Texas?
A: Federal taxes follow the IRS schedule (typically April 15). Texas has no state income tax return.