Texas Paycheck Calculator 2026 - No State Income Tax

Calculate Your Texas Salary After Taxes for 2026 - No State Income Tax

One of the biggest advantages of working in Texas for 2026 is that there's no state income tax. This means your Texas salary after taxes is higher than in most other states because you only pay federal taxes and FICA (Social Security and Medicare). Texas is one of only 9 states with no income tax, along with Florida, Nevada, Washington, Wyoming, South Dakota, Tennessee, New Hampshire, and Alaska—making Texas extremely attractive for workers at all income levels, especially high earners.

For example, someone earning $80,000 in Texas takes home approximately $60,000-$62,000 after federal taxes and FICA in 2026. The same salary in California would result in about $55,000-$58,000 take-home pay due to California's state income tax (up to 12.3%) and SDI. That's a $5,000-$7,000 annual difference just from state taxes alone. A technology worker earning $115,000 in Austin takes home approximately $86,000-$88,000 after federal taxes and FICA in 2026, compared to about $79,000-$82,000 in California—a difference of $7,000-$9,000 per year. As financial advisor David Martinez explains, "Texas's no-income-tax status for 2026 makes it extremely attractive for high-earning professionals and businesses, especially those working in technology, finance, or energy in Dallas, Houston, or Austin."

Our Texas paycheck calculator for 2026 helps you determine your exact Texas salary after taxes. Because we maintain federal, FICA, and Texas withholding tables for every filing status using the latest 2026 tax rates, the calculator instantly shows both per-paycheck and annual net pay. Toggle between salary and hourly pay, include pre-tax deductions such as 401(k), HSA, or health insurance, and watch the tool recompute your Texas take-home pay immediately with accurate 2026 calculations.

How to Calculate Your Texas Salary After Taxes for 2026

Using our Texas paycheck calculator for 2026 is straightforward, thanks to Texas's no-income-tax status. Follow these steps to determine your Texas salary after taxes using the latest 2026 tax rates:

1. Enter your income: Select salary or hourly pay and enter your gross income. For example, if you earn $80,000 per year or $40 per hour in Texas for 2026, enter that amount.
2. Select Texas: Choose Texas as your state (using ?state=TX in the URL fills it in automatically). This ensures no state income tax is applied for 2026.
3. Add your details: Pick your pay frequency (weekly, bi-weekly, semi-monthly, or monthly) and filing status (single, married filing jointly, etc.), then add any 401(k), HSA, or health insurance deductions.
4. Get your results: Click "Calculate My Paycheck" and review the detailed breakdown showing your Texas salary after taxes for 2026, including federal income tax, FICA taxes, and your final take-home pay (no state tax!).

The Texas paycheck calculator for 2026 is especially useful for comparing job offers, planning your budget in popular areas like Dallas, Houston, Austin, or San Antonio, or understanding how pre-tax deductions affect your Texas salary after taxes. With no state income tax, you maximize your take-home pay compared to states with income taxes, making Texas extremely attractive for workers at all income levels, especially high earners in 2026.

Understanding Texas's No-Income-Tax Status for 2026

Texas is one of only 9 states with no state income tax in 2026, which means your Texas salary after taxes is maximized compared to states with income taxes. This makes Texas extremely attractive for workers at all income levels, but especially valuable for high earners who would otherwise face significant state tax burdens. With no state income tax, Texas workers only pay federal income tax and FICA taxes (Social Security and Medicare), meaning more money in your pocket each paycheck in 2026.

The absence of state income tax means that someone earning $50,000 and someone earning $150,000 both benefit equally from Texas's no-income-tax status—neither pays state income tax. This makes Texas particularly attractive for high earners, as they would face significant state tax burdens in states with progressive tax systems (like California's 12.3% top rate or New York's 10.9% top rate plus NYC local tax). However, Texas's combination of no state income tax, relatively high sales taxes (especially in major cities), and high property taxes means overall cost of living should be factored into financial planning for 2026.

Texas generates revenue through sales taxes (6.25% state rate plus local rates up to 2%, bringing totals to 8.25% in some areas like Houston) and property taxes rather than income taxes. This approach means residents pay taxes through consumption and property ownership rather than income, which can benefit those who save more and spend less. However, the sales taxes (especially in major cities) and high property taxes should be considered when evaluating overall cost of living for 2026.

Texas Local Taxes and Your Salary After Taxes

When calculating your Texas salary after taxes for 2026, it's important to note that Texas does not allow local income taxes at the city or county level. Unlike states like Pennsylvania or Ohio, Texas only collects federal taxes and FICA, which simplifies your Texas paycheck calculation significantly.

However, Texas does have relatively high property taxes (among the highest in the country) and sales taxes (6.25% state rate plus local rates up to 2%, bringing totals to 8.25% in some areas like Houston) compared to some states. While these don't directly affect your paycheck, they're important to consider when evaluating the total cost of living in Texas, especially in high-cost areas like Dallas, Houston, or Austin where housing costs can be higher than other Texas cities. Your Texas paycheck calculator results for 2026 will show your take-home pay after federal income tax and FICA taxes only—no state or local income taxes.

This makes Texas an extremely attractive state for workers who want to maximize their take-home pay, as the absence of state income tax means more money in your pocket each paycheck. Texas's combination of no state income tax, no local income taxes, relatively high sales taxes (especially in major cities), high property taxes, and generally moderate cost of living (though higher in Dallas, Houston, and Austin) means take-home pay is maximized, but overall cost of living should be factored into financial planning for 2026, especially in high-cost areas like Dallas, Houston, or Austin.

Example: Texas Salary After Taxes Calculation for 2026

Let's calculate the Texas salary after taxes for someone earning $85,000 per year in Texas for 2026, filing as married filing jointly, with a 6% 401(k) contribution:

• Gross annual salary: $85,000
• 401(k) contribution (6%): $5,100 (pre-tax)
• Federal taxable income: ~$52,100 (after federal standard deduction)
• Federal income tax: ~$4,200
• FICA taxes (Social Security + Medicare): $6,502
• Texas state tax: $0 (no state income tax in 2026!)
• Texas salary after taxes (annual): $69,198
• Bi-weekly Texas paycheck: ~$2,662

This example demonstrates how the Texas paycheck calculator for 2026 works with no state income tax. With no state income tax, your Texas salary after taxes is maximized compared to states with income taxes. The same $85,000 salary in California would result in approximately $60,000-$62,000 take-home pay due to California's state income tax (up to 12.3%) and SDI. The same salary in New York would result in approximately $61,000-$63,000 take-home pay due to New York's progressive state tax (up to 10.9%) plus NYC local tax. The 401(k) contribution reduces federal taxable income, providing tax savings while building retirement savings, and with Texas's no-income-tax status, you get the full benefit of federal tax savings in 2026. However, remember that Texas's relatively high sales taxes (especially in major cities) and high property taxes (among the highest in the country) should be factored into overall financial planning.

Multiple Salary Examples: Texas Take-Home Pay for 2026

Understanding how different salary levels affect your Texas take-home pay for 2026 helps with financial planning:

Entry-Level ($64,000 salary, single filer, 3% 401(k)): After 401(k) contribution ($1,920), federal taxes (~$4,500), FICA (~$4,896), and Texas state tax ($0), annual take-home pay is approximately $52,684, or $2,026 per bi-weekly paycheck. Lower earners benefit equally from Texas's no-income-tax status.

Mid-Career ($93,000 salary, married filing jointly, 5% 401(k)): After 401(k) contribution ($4,650), federal taxes (~$7,000), FICA (~$7,115), and Texas state tax ($0), annual take-home pay is approximately $74,235, or $2,855 per bi-weekly paycheck.

Senior Level ($122,000 salary, married filing jointly, 7% 401(k)): After 401(k) contribution ($8,540), federal taxes (~$12,500), FICA (~$8,337), and Texas state tax ($0), annual take-home pay is approximately $92,623, or $3,563 per bi-weekly paycheck.

High Earner ($157,000 salary, single filer, 10% 401(k)): After 401(k) contribution ($15,700), federal taxes (~$26,000), FICA (~$10,806), and Texas state tax ($0), annual take-home pay is approximately $104,494, or $4,019 per bi-weekly paycheck. Higher earners benefit significantly from Texas's no-income-tax status compared to states with high progressive rates.

Comparing Texas to Neighboring States for 2026

Understanding how Texas compares to nearby states helps when evaluating job offers or considering relocation in 2026:

Texas vs. California: California has progressive tax rates up to 12.3% plus SDI. Someone earning $86,000 in Texas takes home approximately $69,200, compared to about $59,500-$61,500 in California—a difference of $7,700-$9,700 per year, making Texas significantly more favorable.

Texas vs. Louisiana: Louisiana has progressive tax rates up to 6%. Someone earning $86,000 in Texas takes home approximately $69,200, compared to about $66,000-$66,500 in Louisiana—a difference of $2,700-$3,200 per year, making Texas significantly more favorable.

Texas vs. Oklahoma: Oklahoma has progressive tax rates up to 5%. Someone earning $86,000 in Texas takes home approximately $69,200, compared to about $66,500-$67,000 in Oklahoma—a difference of $2,200-$2,700 per year, making Texas significantly more favorable.

Texas vs. New Mexico: New Mexico has progressive tax rates up to 5.9%. Someone earning $86,000 in Texas takes home approximately $69,200, compared to about $66,000-$66,500 in New Mexico—a difference of $2,700-$3,200 per year, making Texas significantly more favorable.

Texas vs. Arkansas: Arkansas has progressive tax rates up to 5.5%. Someone earning $86,000 in Texas takes home approximately $69,200, compared to about $66,500-$67,000 in Arkansas—a difference of $2,200-$2,700 per year, making Texas significantly more favorable.

Texas-Specific Industries and 2026 Considerations

Texas's economy is diverse, with several major industries that benefit from the no-income-tax status:

Technology: Texas has a significant technology sector, particularly in Austin, Dallas, and Houston. Tech workers can use the 2026 paycheck calculator to plan their finances and understand how Texas's no-income-tax status affects their take-home pay, especially when comparing to neighboring states like California where state taxes significantly impact take-home pay.

Energy: Texas, particularly Houston, has a significant energy industry (oil and gas). Energy workers can use the 2026 paycheck calculator to plan their finances and understand how Texas's no-income-tax status affects their take-home pay.

Healthcare: Texas's healthcare sector, including major hospitals in Dallas, Houston, and Austin, provides employment opportunities. Healthcare workers at all income levels can use the 2026 paycheck calculator to plan their finances and understand how Texas's no-income-tax status affects their take-home pay.

Finance: Texas, particularly Dallas, has a significant finance industry. Finance workers can use the 2026 paycheck calculator to compare job offers and understand how Texas's no-income-tax status affects their take-home pay compared to neighboring states.

Manufacturing: Texas has a significant manufacturing sector. Manufacturing workers can use the 2026 paycheck calculator to plan their finances and understand the impact of Texas's no-income-tax status.

2026 Planning Tips for Texas Employees

• Update your W-4 for 2026: If you want to adjust your Texas salary after taxes, update your W-4 if you picked up a second job, got married, or expect significant itemized deductions in 2026. Since Texas has no state income tax, your W-4 only affects federal withholding.
• Maximize pre-tax benefits: Leverage pre-tax benefits—every dollar you contribute to a 401(k) or HSA reduces your federal taxable income, potentially moving you into a lower tax bracket and increasing your take-home pay. In Texas, you get the full benefit of federal tax savings since there's no state tax to save on, making pre-tax contributions especially valuable in 2026.
• Track Social Security wage base: Track your year-to-date taxable wages. Once you hit the Social Security wage base ($168,600 in 2025, adjusted for inflation in 2026), your Texas salary after taxes will increase because OASDI withholding stops for the rest of the year.
• Consider total cost of living: While Texas has no income tax, remember to consider sales taxes (6.25% state rate plus local rates up to 2%, especially in major cities like Houston), property taxes (among the highest in the country), and cost of living (especially in Dallas, Houston, and Austin, where housing costs can be higher than other Texas cities) when evaluating your overall financial situation for 2026.
• Plan for seasonal or variable income: If you work in energy, agriculture, or other seasonal industries, use the 2026 paycheck calculator throughout the year to adjust your budget and tax planning as your income changes. Texas's no-income-tax status makes calculations straightforward regardless of income level.
• Research location-specific costs: Cost of living varies significantly between Dallas, Houston, Austin, San Antonio, and smaller Texas communities. Research housing, utilities, and transportation costs in your specific Texas location when evaluating job offers for 2026, as Dallas, Houston, and Austin's cost of living is higher than other Texas cities.
• Take advantage of no-income-tax benefit: With Texas's no-income-tax status, you maximize your take-home pay compared to states with income taxes, making Texas attractive for workers at all income levels, but especially valuable for high earners who would otherwise face significant state tax burdens in 2026.
• Consider neighboring states: Given Texas's no-income-tax status, Texas can be extremely attractive for workers in the Southwest and South, especially compared to California, Louisiana, Oklahoma, New Mexico, or Arkansas. However, cost of living and job opportunities vary, so compare overall compensation when evaluating job offers for 2026.

Texas Tax Changes and Updates for 2026

Texas continues to have no state income tax in 2026, making Texas one of only 9 states with this benefit. This means your Texas salary after taxes is maximized compared to states with income taxes, as you only pay federal income tax and FICA taxes. Texas generates revenue through sales taxes (6.25% state rate plus local rates up to 2%, bringing totals to 8.25% in some areas like Houston) and property taxes (among the highest in the country) rather than income taxes.

When using the Texas paycheck calculator for 2026, all calculations reflect the latest 2026 tax rates, ensuring accuracy for your 2026 financial planning. Texas's no-income-tax status provides significant benefits for workers at all income levels, but especially valuable for high earners who would otherwise face substantial state tax burdens. The absence of state income tax makes Texas extremely attractive for workers, particularly those in high-earning industries like technology, finance, and energy in 2026.

Frequently Asked Questions About Texas Salary After Taxes for 2026