Texas Paycheck Calculator — Zero State Income Tax · Federal + FICA Only · Free 2026
Free Texas paycheck calculator 2026. No state income tax — instantly see your take-home after federal tax & FICA only.
TX state income tax: $0 — None
No local tax
Min wage: $7.25/hr
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Texas W-4 note: Texas has no state withholding form — you only complete a federal W-4. There is no TX state withholding box on your pay stub. If you see a "TX state tax" deduction on your paycheck, contact your payroll department — it may be an error.
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Your Texas Take-Home Pay (Estimated) — Zero State Tax!
Note: Texas has no state income tax. Only federal tax and FICA are withheld. This estimate uses 2026 IRS Publication 15-T withholding tables. Actual withholding may vary based on your W-4 elections and payroll system.
Note: If your actual paycheck is lower than this estimate, check unaccounted overtime, tip-credit math, or deduction differences against our pay stub guide.
✓ Reviewed for AccuracyReviewed by Jordan Ellis — Senior Payroll & Tax Analyst · Last reviewed: June 2026
$0 State TaxTexas has zero state income tax — constitutionally protected under Article VIII, Section 24-a
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$7.25/hrTexas minimum wage 2026 — matches the federal floor, unchanged since 2009
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Energy, tech & logisticsTexas's largest employment sectors — no state or city can set a higher minimum wage
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At-will + Payday LawAt-will employment with wage-timing protections under the Texas Payday Law
Section 1 — Free Tool
Texas Paycheck Calculator 2026
Texas is one of the simplest states for paycheck math: no state income tax means the only two deductions are federal income tax and FICA (Social Security + Medicare) — nothing else comes out. Enter your pay details below to see an exact breakdown.
⭐ Texas Has Zero State Income Tax
The Texas Constitution (Article VIII, Section 24-a) prohibits the legislature from imposing a tax on the net income of individuals. Your Texas paycheck is reduced only by federal income tax and FICA — never state income tax. This makes Texas one of nine states with no individual income tax, giving workers a significant financial edge over neighbors like California (up to 13.3%) or New Mexico (up to 5.9%).
Section 2 — Texas Tax Advantage
Texas's Zero State Income Tax — What It Means for Your Paycheck
Texas is one of only nine states in the US with no state personal income tax. This single constitutional provision has a dramatic, compounding impact on take-home pay — especially for higher earners. Here's exactly how much more Texas workers keep versus workers in neighboring states, and why Texas's no-tax status is very unlikely to change.
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Texas State Income TaxYou pay zero. Federal tax + FICA only. That's it.
Annual state income tax savings for a Texas worker vs. other states (single filer, standard deductions applied)
Annual Salary
TX State Tax
Saved vs. CA
Saved vs. NM
Saved vs. OK (4.75%)
Saved vs. AR (3.9%)
$50,000
$0
+$1,500–$2,200
+$1,600–$2,000
+$1,400
+$1,100
$75,000
$0
+$3,200–$4,800
+$2,900–$3,500
+$2,500
+$2,000
$100,000
$0
+$5,800–$7,500
+$4,200–$5,000
+$3,700
+$2,900
$150,000
$0
+$11,000–$14,500
+$7,000–$8,200
+$6,200
+$4,800
$200,000
$0
+$18,000–$24,000
+$9,800–$11,500
+$8,700
+$6,700
Real-world compounding impact: A Texas worker earning $100,000/year keeps approximately $5,800–$7,500 more per year than a California counterpart — purely from no state income tax. Invested conservatively over 10 years, that gap compounds to $90,000–$130,000 in additional wealth. This is a primary reason companies and workers continue relocating from California to Texas metros like Austin and Dallas-Fort Worth at record rates.
Texas's trade-off — the full picture: Texas funds state government primarily through sales tax (6.25% state + up to 2% local, capped at 8.25% combined) and some of the highest property taxes in the country (effective rate above 1.6%, among the top 10 nationally). Businesses pay a franchise tax (sometimes called the "margin tax") on gross revenue — not a personal income tax. Homeowners feel Texas's trade-off directly through property tax bills; renters and lower-income workers feel it more through sales tax on everyday purchases.
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How Texas Funds Government Without Income Tax
Texas's revenue mix: state sales tax (6.25%, up to 8.25% combined with local), one of the nation's highest property tax burdens (funds most public school spending), the business franchise/margin tax on gross receipts, oil & gas severance taxes, and federal transfers. Property tax — not sales tax — is Texas's single largest revenue source, which is why the "no income tax" pitch matters more to renters and less to homeowners than it first appears.
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No Local Income Tax Anywhere in Texas
Texas cities and counties impose zero local income tax. No Houston city tax, no Harris County surcharge, no Dallas or Travis County withholding, no Austin or San Antonio income surtax. Zero income tax extends uniformly across all Texas jurisdictions — Texas Labor Code § 62.151 explicitly bars cities and counties from creating their own wage or income tax rules that conflict with state law. Federal withholding and FICA represent your complete income tax obligation from wages — nothing more.
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Is Texas's No-Tax Status Permanent?
Texas voters approved Proposition 4 in November 2019, adding Section 24-a to Article VIII of the Texas Constitution: the legislature may not impose a tax on the net incomes of individuals. Repealing this ban would require a two-thirds vote in both the Texas House and Senate, followed by approval from a majority of voters in a statewide election — a very high bar that makes a Texas income tax extremely unlikely in the foreseeable future.
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Tips & Overtime Income — Federal Tax Still Applies
Tips received by Texas hospitality, restaurant, and service workers are fully subject to federal income tax and FICA. Texas's zero state income tax does not exempt tips from federal taxation. Tips over $20/month must be reported to employers and included on your W-2. Starting with the 2025–2028 tax years, the One Big Beautiful Bill Act (OBBBA) allows a federal deduction of up to $25,000/year in qualified tips for eligible workers — a federal benefit, not a Texas-specific one.
Section 3 — Paycheck Breakdown
How Your Texas Paycheck Is Calculated — Step by Step
Texas's absence of state income tax simplifies paycheck math significantly — but federal withholding and FICA still require careful attention. Here is the complete calculation sequence for a Texas employee, with specifics relevant to Texas's dominant industries: energy, technology, healthcare, construction, and logistics.
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Step 1: Gross Pay — Starting Point
Annual salary ÷ pay periods (salaried), or hours × hourly rate (hourly) — use our salary-to-hourly converter if you need to switch between the two. Texas minimum wage: $7.25/hr (2026) — Texas adopts the federal floor and has not raised it since July 2009. For tipped workers: employers may pay a cash wage of $2.13/hr, using a tip credit of up to $5.12/hr, as long as tips bring total pay to at least $7.25/hr. For overtime-eligible workers: Texas follows the federal FLSA rule only — overtime after 40 hours in a workweek, with no daily overtime requirement regardless of shift length. See Section 4 for the full overtime and tipped-wage rules.
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Step 2: Pre-Tax Deductions — Reduce Federal Taxable Income
Traditional 401(k) contributions (up to $23,500/yr in 2026, plus $7,500 catch-up if age 50+), HSA contributions ($4,300 single / $8,550 family), and Section 125 health/dental/vision premiums all reduce federal taxable wages, as covered in our paycheck tax deduction guide. In Texas, these deductions only reduce federal income tax — there's no state layer to reduce. Every $1,000 in 401(k) saves approximately $220 in federal tax at the 22% bracket. FICA is not reduced by traditional pre-tax deductions.
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Step 3: Federal Income Tax — Your Only Income Tax in Texas
Your employer applies 2026 IRS Publication 15-T withholding tables based on your W-4 elections. Key 2026 brackets (single): 10% on income to $11,925; 12% on $11,925–$48,475; 22% on $48,475–$103,350; 24% on $103,350–$197,300. Most Texas workers earning $50,000–$150,000 fall predominantly in the 22%–24% marginal brackets. This is your only income tax in Texas — there is no state layer above it.
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Step 4: Texas State Income Tax = $0.00 — This Step Does Not Exist
There is no state income tax calculation for Texas employees. No Texas state withholding form to complete, no state withholding amount on your pay stub, no Texas state income tax return to file for wage income. If you see a "TX state tax" line with a dollar deduction on your paycheck, contact your payroll department immediately — this is likely a payroll configuration error. Texas employers do not remit any state income withholding to the state.
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Step 5: FICA — Social Security + Medicare
Social Security: 6.2% on wages up to $184,500 (2026 SS wage base). Medicare: 1.45% on all wages. Additional Medicare Tax: an extra 0.9% on wages exceeding $200,000 ($250,000 for married filing jointly). FICA applies to all Texas workers regardless of the state's no-income-tax status. For restaurant and hospitality workers with significant tip income: SS and Medicare also apply to all reported tips — your employer calculates FICA on your total wages including tips.
Post-tax deductions come out after all tax calculations and do not reduce taxable income. Common examples for Texas workers: Roth 401(k) contributions, court-ordered wage garnishments (child support, student loans), and voluntary benefit premiums not run through a Section 125 plan. Texas is a right-to-work state, so union dues are far less common as a payroll deduction than in states with stronger union density. Texas law requires written authorization for most voluntary post-tax deductions.
Section 4 — Texas Labor Law
Texas Payroll Laws — Overtime, Tip Credit & Pay Deadlines
Texas is widely considered one of the most employer-friendly states for wage law: no state minimum wage above the federal floor, no daily overtime, and no state law requiring meal or rest breaks. What Texas does have is a real, enforceable set of rules under the Texas Payday Law and the federal FLSA — and these directly affect what should appear on your Texas pay stub.
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Texas Overtime — Federal FLSA Rules Only, No Daily Overtime
Texas has no state overtime statute of its own — all overtime obligations for Texas employers come from the federal Fair Labor Standards Act:
Hours over 40 in a workweek trigger 1.5× your regular rate — this is the only overtime threshold in Texas
No daily overtime — working a 10, 12, or even 16-hour single shift does not by itself trigger overtime, as long as your weekly total stays at or under 40 hours
No double-time requirement for holidays, weekends, or any other circumstance unless your employer's own policy provides it
A Texas workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods) that can start on any day your employer designates. Salaried "exempt" classification does not automatically excuse an employer from overtime — the employee must actually meet the federal duties test and earn at least the federal salary threshold ($684/week as of early 2026, after the 2024 DOL rule increase was struck down by a Texas federal court).
Common issue: Misclassifying a salaried worker as "exempt" without meeting the federal duties test is one of the most frequent overtime disputes in Texas. Being paid a salary does not, by itself, mean you're ineligible for overtime.
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Texas Pay Frequency & Final Paycheck Rules (Texas Labor Code § 61.014)
Under the Texas Payday Law, non-exempt employees must be paid at least semi-monthly (twice per month); exempt employees may be paid monthly. Employers must designate paydays in advance.
Final paycheck on termination: If you are discharged, laid off, or otherwise involuntarily separated, Texas requires your final paycheck within 6 calendar days of discharge — more lenient than states like California (immediate) or Nevada (3 days), but still a hard deadline. See our final paycheck rules guide for how other states compare. If you quit voluntarily, your final paycheck is due on the next regularly scheduled payday — no matter how much or how little notice you gave.
Withholding a final check is illegal: Texas law does not allow employers to hold a final paycheck as leverage — for unreturned equipment, unsigned paperwork, or any other reason. Unpaid wage claims can be filed with the Texas Workforce Commission (TWC) within 180 days, and the TWC can order payment plus penalties for willful violations.
Unlike Nevada or California, Texas does allow a tip credit — meaning tipped employees can legally be paid less than the standard minimum wage in cash, as long as tips make up the difference:
Employers may pay tipped employees a cash wage as low as $2.13/hr, using a tip credit of up to $5.12/hr
Cash wage + tips must equal at least $7.25/hr for every workweek — if they don't, the employer must make up the shortfall
Texas defines a "tipped employee" as someone who regularly receives more than $20/month in tips — a lower bar than the federal $30/month threshold, so more Texas workers qualify as "tipped" under state law
Tip pooling among employees is allowed, but managers, supervisors, and owners cannot participate
Mandatory service charges (an automatic 18% for large parties, for example) are not legally tips — restaurants have no obligation to pass them to servers unless company policy says otherwise
Tip credit allowed — $2.13/hr cash minimumTips + cash must reach $7.25/hrManagers barred from tip pools
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Texas Paycheck Deduction Rules — What Employers Can and Cannot Deduct
Under Texas law, employers generally cannot make deductions from wages without prior written authorization, or unless ordered by a court (child support, tax levies). Permissible deductions include: taxes required by law (federal income tax, FICA), court-ordered garnishments, and voluntary deductions authorized in writing (health insurance, 401(k) contributions).
Commonly disputed deductions include: "training fees," equipment losses, cash register shortages, and customer walkouts — these are frequently challenged as unauthorized under the Texas Payday Law unless the employee signed a specific, clear deduction agreement in advance. Texas does not require employers to pay out unused vacation or PTO at separation unless a written policy promises it — if your handbook says "unused vacation is forfeited," that's enforceable.
Section 5 — Compare No-Tax States
Texas vs. Other No-Income-Tax States — Complete Comparison
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (interest/dividends only, phasing out), South Dakota, Tennessee, Texas, Washington (capital gains only for high earners), and Wyoming. How does Texas stack up for overall worker tax burden, cost of living, and quality of life as a working professional?
State
Income Tax
Sales Tax (combined)
Property Tax (avg)
Overall Worker Burden
Key Trade-off
Texas ⭐
0%
6.25%–8.25%
Very High (1.6%+)
Moderate
Among the highest property taxes in the US significantly offset income tax savings
Nevada
0%
6.85%–8.375%
Low (0.53% avg)
Low
High sales tax in Clark Co.; rising Las Vegas cost of living
Tennessee
0%
7.0%–9.75%
Low (0.56% avg)
Low
Highest combined sales tax in the US, but low property tax
Florida
0%
6.0%–8.5%
Moderate–High
Low
High property insurance; hurricane risk; crowding
Washington
0%*
6.5%–10.4%
Moderate
Moderate
7% capital gains tax for high earners; highest sales tax in the West
Wyoming
0%
4.0%–6.0%
Very low
Very Low
Limited metro job market; small state economy
Alaska
0%
0%–9.5%
Low
Low
Remote access; extreme climate; higher cost of living
Texas's competitive position: For most working professionals — particularly in energy, technology (Austin's tech sector has grown rapidly), healthcare, and remote workers relocating from high-tax states — Texas offers zero income tax and access to four of the country's largest metro areas (Houston, Dallas-Fort Worth, San Antonio, Austin). The trade-off is real: Texas's property tax burden is among the highest in the nation, so the income-tax advantage matters far more to renters than to homeowners, and the benefit is largest for high earners who save and invest a larger share of income.
Unlike Texas, Nevada and Florida keep property taxes closer to the national average, leaning instead on tourism and gaming revenue to replace income tax. Tennessee takes a third approach, funding its zero-income-tax status through the highest combined sales tax in the country. For workers weighing a move to a higher-tax state with local income tax layered on top, see how take-home pay compares in New York, where state and NYC-level withholding both apply.
Section 6 — County-Specific Rules
Texas County-by-County Paycheck & Tax Rules
While Texas has no local income taxes anywhere in the state, county- and city-level differences do affect your financial life — through sales tax rates, property tax burdens, dominant industries, and local cost of living. Here is what workers in each major Texas metro need to know.
🛢️ Harris County (Houston, Pasadena, Baytown)
Population: ~4.8M · Texas's largest county · Energy capital of the world
Sales tax: 8.25% combined (6.25% state + 2% local/transit add-on, at the Texas cap) in Houston and most incorporated cities.
Income tax: $0 — no city or county income tax in Houston, Pasadena, or Baytown.
Energy sector wages: Houston is the headquarters hub for the US oil & gas industry, plus a growing petrochemical and biomedical presence around the Texas Medical Center. Engineers, tradespeople, and offshore workers frequently earn well above the state's $7.25/hr floor, with substantial overtime pay common in refinery and turnaround work.
Property tax: Harris County's average effective property tax rate is among the highest in the US (near 2.0% in some districts) — a major factor for homeowners weighing Texas's no-income-tax advantage.
🏙️ Dallas County (Dallas, Irving, Garland, Mesquite)
Population: ~2.6M · Anchor of the Dallas-Fort Worth metroplex · Finance & logistics hub
Sales tax: 8.25% combined (6.25% state + 1% city + 1% DART transit tax) in Dallas — at the state cap.
Income tax: $0 — no Dallas city tax, no Dallas County income tax of any kind.
Corporate & logistics wages: DFW hosts more Fortune 500 headquarters than almost any other US metro, plus major logistics operations around DFW Airport. Corporate, finance, and logistics workers typically earn well above minimum wage, with strong demand for skilled trades in the ongoing regional construction boom.
Fast-growing suburbs: Collin and Denton counties (Plano, Frisco, McKinney) sit just north of Dallas County and share the same 8.25% sales tax cap and zero income tax, with rapidly growing corporate campuses.
Population: ~1.3M · State capital · Fast-growing tech hub
Sales tax: 8.25% combined (6.25% state + 2% local) in Austin — at the Texas cap.
Income tax: $0 — no Austin city tax, no Travis County income tax.
Tech sector growth: Austin has attracted major tech employers (Tesla, Oracle, Apple, Samsung, and numerous venture-backed startups) partly due to Texas's no-income-tax status combined with a deep University of Texas talent pipeline. Software, hardware, and semiconductor workers here often earn well above the state minimum.
State government workers: Austin hosts Texas state government. Most state employees participate in the Employees Retirement System of Texas (ERS), a defined-benefit pension funded through employee and state contributions.
Sales tax: 8.25%Tech & startup hubState ERS pension system
🎖️ Bexar County (San Antonio)
Population: ~2.0M · Seventh-largest US city · Military & healthcare hub
Sales tax: 8.25% combined (6.25% state + 2% local) in San Antonio — at the Texas cap.
Income tax: $0 — no San Antonio city tax, no Bexar County income tax.
Military & healthcare wages: San Antonio hosts Joint Base San Antonio (one of the largest military employment concentrations in the US) plus a large biomedical and healthcare sector. Federal civilian employees, healthcare workers, and military-adjacent contractors make up a substantial share of the local workforce, all subject to standard federal tax and FICA rules.
Lower cost of living: San Antonio's cost of living and typical property tax bills run somewhat lower than Austin or Dallas, making Texas's no-income-tax advantage stretch further for workers here.
Sales tax: 8.25%Military & healthcare hubLower relative cost of living
Remote workers — important note: If you live in Texas and work remotely for a California, New York, or other high-tax state employer, you generally owe no income tax to that state for work physically performed in Texas. Texas is your state of residency and physical work location. However, if you occasionally travel to your employer's state for meetings or work, those in-state days may be taxable there. California in particular aggressively pursues source-state taxation for remote workers who travel in-state. Consult a tax professional if your employer is headquartered in a high-tax state and you travel there regularly.
📋 Section 7 — Texas Paycheck Accuracy Checklist
Does Your Texas Paycheck Add Up?
Texas relies primarily on the Texas Payday Law and federal FLSA to govern paychecks. Here are the most common items to check:
✓Exempt classification requires meeting the federal duties test and salary threshold ($684/week)
✓Overtime paid at 1.5× for hours over 40 in a workweek — the only overtime threshold Texas recognizes
✓Tip credit: employer pays the $2.13/hr tipped cash wage, and tips must bring total pay to at least $7.25/hr
✓Final paycheck due within 6 calendar days of an involuntary termination, or by the next payday after a voluntary resignation
✓Pre-shift setup, post-shift breakdown, and mandatory meetings should be counted as paid work time
✓Deductions for training fees, equipment losses, or register shortages generally require a specific signed agreement
If your paycheck doesn't match what you expect, compare it against our pay stub guide first. For unresolved pay disputes, file a free wage claim with the Texas Workforce Commission (TWC) within 180 days of the date wages were due.
Section 8 — Frequently Asked Questions
Texas Paycheck Calculator — FAQ
Answers to the most-searched questions about Texas take-home pay, the zero state income tax, overtime and tip laws, county-specific rules, and wage claims — verified against the Texas Labor Code, IRS 2026 guidance, and Texas Workforce Commission publications.
Take-Home Pay Guide
How Much Is Taken Out of My Paycheck in Texas?
Texas workers have some of the simplest paycheck math in the country — only federal income tax and FICA are deducted. For a Houston energy-sector employee earning $60,000/year (bi-weekly), expect roughly $267 in federal income tax and ~$177 in FICA — leaving approximately $1,863 per paycheck. Zero state income tax. Zero local income tax. Compared to a California worker at the same salary, a Texas worker takes home approximately $3,600–$4,800 more per year purely from the absence of state income tax. Dallas finance workers and Austin tech employees pay exactly the same: only federal and FICA. Run the exact numbers for your own salary and pay frequency with our nationwide take-home pay tool.
Worked Example
⭐ Texas: Real Paycheck Breakdown 2026
Energy, tech & corporate · No state income tax · $7.25/hr minimum wage · Single filer · Bi-weekly pay (26 paychecks/year)
Annual Salary
$60,000per year
Take-Home (Bi-weekly)
$1,863
Gross (bi-weekly)
$2,307.69
— Federal Income Tax
-$267
— Texas State Tax
$0.00
— Social Security + Medicare
-$177
Net Take-Home Pay
$1,863
Key insight: Texas is one of nine states with no state income tax. Every dollar earned is taxed only at the federal level plus FICA. A Texas worker earning $60,000 keeps approximately $3,600–$4,800 more per year than a comparable California worker — purely from the absence of state income tax.
Salary Calculator
Texas Salary Calculator — Take-Home Pay With No State Tax
Converting a Texas annual salary to net take-home is straightforward: only federal withholding and FICA apply. At $75,000/year, total deductions run approximately 23%–26% of gross (all federal and FICA). At $120,000+, the 24%–32% federal brackets apply. No Texas city or county income taxes exist — what you see on the federal withholding tables is your complete income tax burden. Tipped restaurant and hospitality workers should ensure their W-4 accounts for total annual income including reported tips.
Yes. The Texas Constitution (Article VIII, Section 24-a) prohibits the legislature from imposing a tax on the net income of individuals. This provision was added by voters through Proposition 4 in November 2019, building on a similar 1993 constitutional restriction. Repealing it would require a two-thirds vote in both the Texas House and Senate, followed by approval from a majority of voters statewide — a very high bar.
As a Texas worker, you pay only federal income tax and FICA (Social Security 6.2% + Medicare 1.45%) from your wages. No Texas state withholding form exists. There is no TX state tax line on your pay stub and no Texas state income tax return for wage income. Texas funds its state government primarily through sales tax, property tax, the business franchise tax, and federal transfers.
For a worker earning $80,000/year, California withholds approximately $4,000–$5,000/year in state income tax depending on filing status and deductions. Texas withholds $0. That's a difference of roughly $154–$192 per bi-weekly paycheck — purely from the state tax difference.
At $150,000/year, the difference can reach $11,000–$14,500+ per year. At $200,000, it can exceed $18,000–$24,000 annually. Over 10 years with conservative investment returns, compounding turns this into $180,000–$360,000 in additional wealth — a life-changing difference. This is a major reason companies and workers continue relocating from California to Texas metros like Austin and Dallas-Fort Worth. Keep in mind Texas's higher property taxes partially offset this for homeowners.
Texas's minimum wage is $7.25 per hour in 2026 — the same as the federal minimum wage, unchanged since July 24, 2009. Texas adopts the federal rate under the Texas Minimum Wage Act (Texas Labor Code Chapter 62) rather than setting its own, and state law prohibits any city or county from setting a higher local minimum wage.
Tipped employees may be paid a cash wage as low as $2.13/hr, with tips expected to bring total pay to at least $7.25/hr. Workers under 20 may be paid a training wage of $4.25/hr for their first 90 days of employment. There is no scheduled increase to the Texas minimum wage.
No. Texas has no state overtime law of its own, and follows the federal Fair Labor Standards Act (FLSA) exclusively. Overtime is calculated on a weekly basis only — 1.5× your regular rate for all hours worked over 40 in a workweek. Working a long single shift (10, 12, even 16 hours) does not by itself trigger overtime, as long as your total weekly hours stay at or under 40.
This puts Texas in contrast with a small number of states — including California and Nevada — that do require daily overtime after 8 hours in a single workday. If you work in Texas and see "daily overtime" language in a pay policy, that's a matter of your employer's own policy, not a legal requirement.
Yes, within limits. Texas allows a tip credit under the same framework as federal law. Employers may pay tipped employees — those regularly earning more than $20/month in tips — a cash wage as low as $2.13/hr, using a tip credit of up to $5.12/hr, as long as your cash wage plus tips equals at least $7.25/hr for every workweek.
If your tips don't bring your total pay up to $7.25/hr in a given week, your employer is legally required to make up the difference. If they don't, that's a wage violation you can report to the Texas Workforce Commission. Managers and supervisors are barred from participating in employee tip pools under federal law.
If you were involuntarily terminated (fired, laid off, or otherwise let go by your employer), Texas Labor Code § 61.014 requires your employer to pay all earned wages within 6 calendar days of discharge. If you voluntarily quit — for any reason, with or without notice — your final pay is due at the next regularly scheduled payday, which could be further out than 6 days.
Texas does not require employers to pay out unused vacation or PTO at separation unless a written policy or employment agreement promises it. Your employer cannot withhold your final paycheck for unreturned equipment or any other reason. File a wage claim with the Texas Workforce Commission (TWC) within 180 days if you aren't paid on time.
Texas's state base sales tax is 6.25%. Local jurisdictions — cities, counties, transit authorities, and special-purpose districts — can add up to 2% more, for a maximum combined rate of 8.25%. Houston, Dallas, San Antonio, Austin, Fort Worth, and El Paso are all at this 8.25% cap, as are most incorporated Texas cities.
Texas exempts most unprepared groceries and prescription drugs from sales tax, and holds an annual back-to-school sales tax holiday (typically mid-August) exempting clothing, footwear, and school supplies under $100/item. For higher earners who save and invest more, income tax savings still substantially exceed the sales tax burden — but for lower-income workers spending most wages on goods, the offset is more meaningful.
No — Texas employees face no state payroll tax deducted from their wages. The Texas franchise tax (sometimes called the "margin tax") is a business-side tax on gross revenue, not a payroll deduction — it never appears on an employee's pay stub. As a Texas worker, your complete tax obligations from your paycheck are: federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). Nothing else.
Texas is also unusual in that private-sector workers' compensation coverage is optional for employers ("non-subscriber" status) — this doesn't affect your paycheck directly, but it can affect your rights if you're injured on the job.
Generally no — if you are a Texas resident and perform all work physically in Texas, your wages are sourced to Texas where the income tax rate is $0. California's income tax applies to California-sourced income (work performed while physically in California).
However, if you occasionally travel to California for meetings, training, or client visits, those California-based days may be proportionally subject to California income tax. California aggressively asserts source-state taxation on non-resident workers. If you travel to California regularly for your job, consult a tax professional to avoid unexpected California tax bills at year-end.