What Is Withheld From My Paycheck in Texas?
By Team SalaryCalculate · 7/23/2025
When you get your paycheck in Texas, it’s tempting to just look at the take-home number and move on. But what’s actually being taken out—and why? Even though Texas doesn’t collect state income tax, your paycheck still sees a few slices taken out before it hits your bank account.
For most employees in Texas, the biggest deductions are federal. That includes federal income tax, Social Security, and Medicare—together known as FICA taxes. If you're enrolled in benefits like health insurance or a 401(k), those come out too. And if you’ve got student loans or child support orders, those may be deducted automatically.
Here’s the thing: even without a state income tax, Texans still pay their fair share. Depending on your income and situation, federal taxes alone can take 10% to 37%.
Federal Taxes Deducted From a Texas Paycheck
Let’s break down the key federal paycheck deductions you’ll see in Texas.
1. Federal Income Tax
This is the largest deduction for most Texans. It’s based on your taxable income, filing status, and Form W-4 details. Here's how it works in 2025:
| Income Bracket (Single) | Tax Rate |
| Up to $11,600 | 10% |
| $11,601 – $47,150 | 12% |
| $47,151 – $100,525 | 22% |
| $100,526 – $191,950 | 24% |
| $191,951 – $243,725 | 32% |
| $243,726 – $609,350 | 35% |
| Over $609,350 | 37% |
These are marginal rates, so only the income within each range is taxed at that rate.
2. FICA Taxes (Social Security + Medicare)
You do pay FICA taxes in Texas, even without state income tax. These are:
- Social Security: 6.2% (on earnings up to $168,600 in 2025)
- Medicare: 1.45% (with no income cap)
- Additional Medicare Tax: 0.9% on income over $200,000
Combined, that’s 7.65% on most earnings. Employers match this amount, but if you're self-employed, you pay the full 15.3%.
Common Pre-Tax Deductions
Before taxes are even calculated, certain contributions reduce your taxable income. These might include:
- Health Insurance Premiums (medical, dental, vision)
- Health Savings Account (HSA) or Flexible Spending Account (FSA)
- 401(k) or 403(b) retirement contributions
- Dependent care plans
- Commuter benefits
These reduce your taxable income and help you save on federal taxes.
Post-Tax Deductions
Some deductions come after taxes. These don’t reduce your taxable income but still affect your take-home:
- Roth 401(k) contributions
- Garnishments (child support, tax levies)
- Union dues
- Charitable donations via payroll
- Loan repayments
An Example Texas Paycheck
Here’s how a monthly paycheck might look in 2025 for someone earning $75,000/year with standard deductions and no additional withholdings:
| Category | Amount |
| Gross Pay | $6,250.00 |
| Federal Income Tax | -$796.00 |
| Social Security (6.2%) | -$387.50 |
| Medicare (1.45%) | -$90.63 |
| 401(k) (5%) | -$312.50 |
| Health Insurance | -$150.00 |
| Take-Home Pay | $4,513.37 |
What’s Not Withheld in Texas
Here’s where Texas stands out:
✅ No state income tax
✅ No state disability insurance
✅ No city-level income tax (like in NYC or Philly)
That said, you still pay federal taxes, sales taxes, and property taxes. Texas has some of the highest property taxes in the U.S., so what you save on income tax might be paid elsewhere.
What If You’re Self-Employed?
Self-employed Texans don’t get a paycheck with withholdings. But they still owe:
- Self-Employment Tax: 15.3% on net earnings
- Estimated Federal Income Tax: paid quarterly
No paycheck doesn’t mean no taxes. In fact, you’ll likely pay more out-of-pocket.
Tip: Consider using quarterly estimated tax calculators or accounting software to stay on track.
FAQs: Paycheck Withholding in Texas
Do Texans pay any income tax at all?
Not at the state level. But federal income tax still applies.
Why does my paycheck seem smaller than my salary?
Gross salary includes your full pay before deductions. Things like 401(k) contributions, health insurance, and taxes reduce what you take home. Read: Texas paycheck vs W-2 income
Can I adjust how much is withheld?
Yes. Update your W-4 form to change federal income tax withholding. The more allowances or dependents you claim, the less withheld.
Do bonuses get taxed differently?
Yes and no. They’re often taxed at a flat 22% rate initially, but it’s just a withholding method. Your final tax depends on your total income.
Final Thoughts
Even without state income tax, Texas paychecks aren’t immune to deductions. Between FICA, federal income tax, and benefit contributions, your take-home pay can look very different from your gross salary. But understanding what’s withheld—and why—can help you plan smarter.
Use the Texas net salary calculator to take control of your paycheck. You might be surprised where your money goes—and where you can get some back.
