Texas is one of nine US states with no state income tax, meaning workers keep significantly more of every paycheck. On an average Texas salary of $75,000, workers take home approximately $64,000 — an effective rate of about 15%, covering only federal income tax and FICA. Compared to California, a Texas worker on the same salary takes home $3,000–$5,000 more per year. Texas funds state services through property taxes (among the highest in the US) and sales tax of 6.25%–8.25%, but these do not affect your paycheck directly. The energy sector drives above-average salaries in Houston and Midland.
Texas has no state income tax on wages in this model. Property and sales taxes are separate from paycheck withholding.
✓ No state income tax in Texas
Bi-weekly take-home
$2,351.87
Annual net: $61,149
Where your pay goes
| Gross salary | $75,000 |
| Federal income tax | −$8,114 |
| State tax (Texas) | No state income tax |
| Social Security | −$4,650 |
| Medicare | −$1,088 |
| Net pay (annual) | $61,149 |
| Net pay (Bi-weekly) | $2,351.87 |
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | 10% – 37% | Progressive brackets |
| Texas State Income Tax | 0% | No state income tax |
| Social Security | 6.2% | Up to $176,100 wage base |
| Medicare | 1.45% | Uncapped |
| Additional Medicare | 0.9% | On income over $200,000 |
| State SDI / Disability | None | No employee SDI in Texas |
Illustrative rounded figures.
| Gross salary | Federal tax | TX state tax | FICA | Take-home | Effective rate |
|---|---|---|---|---|---|
| $50,000 | ~$5,500 | $0 | ~$3,825 | ~$40,675 | ~18.7% |
| $75,000 | ~$10,200 | $0 | ~$5,738 | ~$59,062 | ~21.2% |
| $100,000 | ~$15,000 | $0 | ~$7,650 | ~$77,350 | ~22.7% |
| $150,000 | ~$27,000 | $0 | ~$9,765 | ~$113,235 | ~24.5% |
Texas workers benefit from zero state income tax, no employee SDI contributions, and relatively straightforward federal-only payroll deductions. Houston's energy sector offers salaries of $90,000–$150,000+ in oil and gas, engineering, and technology. Dallas and Austin have growing technology and finance sectors with median salaries above $85,000. While Texas property taxes average 1.6%–2.0% of home value — among the highest nationally — these are separate from paycheck deductions.
No. Texas has no state income tax in 2026. Texas workers only pay federal income tax and FICA (Social Security and Medicare) from their paychecks. Texas funds state government through property taxes and a state sales tax of 6.25%–8.25%.
On a $75,000 salary in Texas, you take home approximately $59,000–$60,000 after federal income tax and FICA taxes. With no state income tax, your effective rate is approximately 21%, significantly lower than states like California or New York.
On a $100,000 salary, a Texas worker takes home approximately $77,350 compared to about $69,735 in California — a difference of roughly $7,600 per year. This gap grows at higher incomes due to California's progressive state tax brackets.
Houston leads Texas salaries with high-paying energy, engineering, and healthcare jobs averaging $85,000–$100,000+. Dallas and Austin have strong technology and finance sectors with median salaries of $80,000–$95,000. All Texas cities benefit equally from zero state income tax.
Educational estimates only. Not IRS or payroll advice.