How Much Federal Income Tax Is Withheld in Texas?

The amount of federal income tax withheld from a paycheck in Texas is determined by federal law, not state-level regulations. Because Texas is one of the few states without a personal income tax, workers do not have state income taxes deducted from their pay. Their withholding is limited to federal income tax and other mandatory federal payroll taxes. The specific amount withheld is not a fixed percentage but is calculated based on financial and personal information the employee provides to their employer.

Key Factors Determining Your Federal Withholding

The document you use to communicate your tax situation to your employer is Form W-4, Employee’s Withholding Certificate. The information you provide on this form controls the amount of federal income tax your employer will set aside from each paycheck. Along with your gross pay and pay frequency, the W-4 uses several inputs to calculate your withholding.

• Filing Status: In Step 1, you select your filing status, such as Single, Married Filing Jointly, or Head of Household. This status corresponds to different tax brackets and standard deduction amounts, which for 2025 is $15,000 for single filers and $30,000 for married couples filing jointly.
• Multiple Jobs or Spouse Works: Step 2 is used to account for multiple jobs or a working spouse, which helps prevent under-withholding by consolidating income information.
• Dependents: Step 3 allows you to claim credits for children and other dependents if your income is under $200,000 ($400,000 if married filing jointly). These credits, such as the Child Tax Credit, reduce your tax liability on a dollar-for-dollar basis, which lowers the amount of tax that needs to be withheld.
• Other Adjustments: Step 4 allows for other adjustments, such as reporting non-wage income, claiming deductions beyond the standard deduction, or requesting a specific additional amount of tax to be withheld from each paycheck.

The Withholding Calculation Process

After you submit your Form W-4, your employer uses that information to calculate the amount of federal income tax to withhold. Employers follow procedures detailed by the IRS in Publication 15-T, which outlines two methods an employer can use: the Wage Bracket Method and the Percentage Method.

The Wage Bracket Method is a straightforward approach that involves a series of tables provided by the IRS. These tables organize withholding amounts based on an employee’s wages, pay period, filing status, and W-4 information. The employer looks up the employee’s wage for the pay period in the correct table to find the amount of tax to withhold.

Employers may use the Percentage Method for more complex payrolls. This approach is more formulaic and involves a multi-step calculation. The employer starts with the employee’s gross pay, subtracts pre-tax deductions and amounts for tax credits claimed on the W-4. The resulting adjusted wage is then used with percentage-based tax brackets to compute the final withholding amount.

Other Federal Payroll Tax Withholdings

Beyond federal income tax, your paycheck will have other mandatory deductions under the Federal Insurance Contributions Act (FICA). These taxes fund the Social Security and Medicare programs, and both the employee and employer pay them. FICA taxes are calculated as a flat percentage of your earnings.

The Social Security tax is levied at a rate of 6.2% on your gross wages up to an annual income limit, known as the wage base. For 2025, the Social Security wage base is $176,100. Once your earnings for the year exceed this amount, you will no longer have Social Security tax withheld.

The Medicare tax is calculated at a rate of 1.45% of your gross wages. Unlike Social Security, there is no wage limit for Medicare, so it applies to all of your earnings. High-income earners are also subject to an Additional Medicare Tax of 0.9% on wages exceeding $200,000 for single filers or $250,000 for married couples filing jointly. This additional tax is paid only by the employee.

Adjusting Your Withholding

If you find that too much or too little tax is being withheld, you can take action to correct it. The most effective way to check your withholding is by using the official IRS Tax Withholding Estimator tool on the IRS website. This online tool helps you determine if you are on track for the year by using your pay stubs, recent tax return, and estimates of other income.

The only way to change your federal income tax withholding is to submit a new Form W-4 to your employer. You can do this at any time during the year, especially after a significant life event such as marriage, the birth of a child, or a change in income. Your employer’s HR or payroll department will process the updated form and adjust your withholding for future pay periods.