How to Increase My Take-Home Pay in Texas

By Team SalaryCalculate · 7/23/2025

If you live and work in Texas, your take-home pay might look pretty different from someone earning the same salary in another state. That’s because Texas doesn’t have a state income tax — which is great news. But even without that extra tax bite, a surprising chunk of your paycheck still disappears before it hits your bank account.

Let’s say you make $70,000 a year. You might expect to bring home around $5,800 a month, but with federal income tax, Social Security, Medicare, 401(k) contributions, and health insurance premiums taken out, your actual pay could drop to $4,500 or less. The good news? There are ways to get more of that money back into your pocket.

This article walks through smart, legal strategies for increasing your take-home pay in Texas. From adjusting your W-4 form to maximizing employer benefits and understanding payroll deductions, we’ll break it all down in plain English. Use this as your go-to guide for getting more from your paycheck.

What Is Take-Home Pay?

Take-home pay is the amount you actually receive after taxes and deductions are subtracted from your gross salary. It’s your net pay — what you can spend, save, or invest.

To get a quick look at what your take-home pay might be based on your salary, use the free Texas net salary calculator. It estimates your paycheck after federal taxes, Social Security, and Medicare, plus optional deductions like retirement contributions and health insurance.

1. Adjust Your W-4 Withholding

One of the fastest ways to increase your take-home pay is by adjusting your W-4 form. This form tells your employer how much federal income tax to withhold from each paycheck. If too much is withheld, you’ll get a big tax refund later — but that’s money you could be using now.

When should you update your W-4?

Scenario	When to Change
You got married	Yes
You had a child	Yes
Your spouse started working	Yes
You had a big refund last year	Probably
You owed the IRS last year	Definitely

Not sure where to begin? Check out this guide: should I change my W4 in Texas.

2. Know What’s Being Deducted From Your Paycheck

Your paycheck may include deductions you’ve forgotten about — or didn’t realize were optional. These include:

Type of Deduction	Is It Required?	Reduces Taxable Income?
Federal income tax	Yes	No
Social Security + Medicare	Yes	No
401(k) or 403(b) retirement	Optional	Yes
Health insurance premiums	Optional	Often
HSA/FSA contributions	Optional	Yes
Wage garnishments	If applicable	No

Want to dive deeper? Read: how do payroll deductions work in Texas.

3. Contribute to Pre-Tax Accounts (Like 401(k), HSA, FSA)

Pre-tax contributions reduce your taxable income, which means you owe less federal income tax. That boosts your take-home pay.

Examples:

Account	2025 Contribution Limit
401(k)	$23,000 ($30,500 if 50+)
HSA (self-only)	$4,300
FSA	$3,200

4. Use Employer Benefits Wisely

Some employer perks can quietly eat into your take-home pay if you're not paying attention. Others can increase it without you even noticing.

Ask yourself:

- Are you overpaying for insurance coverage you don’t need?
- Does your employer offer a dependent care FSA?
- Can you opt into commuter benefits?
- Are you missing out on matching 401(k) contributions?

5. Avoid Under-Withholding Penalties

Trying to increase your paycheck by underpaying taxes? Be careful. If you reduce your withholding too much, you could owe money — and penalties — at tax time.

To strike the right balance, use the IRS Tax Withholding Estimator or talk to a tax advisor before making big W-4 changes.

6. Get Smart With Side Gigs and Bonuses

If you have a side hustle or get bonuses at work, they’re taxed differently than regular wages. Sometimes that means extra withholding, especially if your employer uses a flat 22% rate for bonuses.

Tip: If your bonus seems over-taxed, check whether it’s being added to your regular paycheck or treated separately. You might need to update your W-4 or track it for tax time.

7. Review Benefits Annually

Open enrollment is your chance to adjust benefits that affect take-home pay. Don’t just pick the default — run the numbers.

8. Consider Filing Taxes Strategically

Texas doesn’t have a state income tax, but federal tax brackets still apply. If you’re married, filing jointly vs. separately can impact your take-home amount year-round.

Example: Two Texans, Same Salary, Different Take-Home Pay

Let’s say Sarah and James both earn $70,000 in Dallas.

Scenario	Sarah	James
W-4 Updated	✅	❌
401(k) Contribution	10%	0%
Health Plan	HDHP + HSA	PPO
Estimated Take-Home (Monthly)	$4,660	$4,250

FAQs

Can I increase my take-home pay without changing jobs?
Yes. Start by reviewing your W-4 and paycheck deductions. Many people find hidden opportunities by adjusting benefits or retirement contributions.

Is it bad to withhold too little?
Yes — you may owe at tax time, and the IRS could charge underpayment penalties if you fall short.

Do bonuses hurt my paycheck?
They can, if your employer applies a flat withholding rate. You may get some of that money back at tax time.

Final Thoughts

Getting more from your paycheck doesn’t always mean earning more. Sometimes, it's about making smarter choices with what you already earn. Take a few minutes to review your W-4, check your deductions, and explore pre-tax benefits — even a small tweak can boost your take-home pay over time.

And remember: if you ever want to double-check your paycheck math, the Texas net salary calculator is a great place to start.