How Much Tax Is Taken Out of a Paycheck in Texas?

A paycheck’s gross amount is reduced by various deductions, resulting in net or take-home pay. Unlike most states, Texas does not impose a state income tax. Therefore, federal taxes and other specific deductions are the primary components that reduce an individual’s paycheck in Texas.

Federal Income Tax Withholding

Federal income tax is a mandatory deduction from most employees’ paychecks, prepaying an individual’s annual tax liability. Employers withhold this tax based on employee-provided information. The amount withheld is primarily determined by the employee’s completed Form W-4, which instructs the employer on how to calculate appropriate withholding.

The W-4 form requires information like filing status, the number of dependents, and any additional income or deductions an individual anticipates. This information helps the employer estimate the correct amount of federal income tax to withhold each pay period. The IRS provides withholding tables employers use to remit the proper tax amount.

Social Security and Medicare Taxes

Federal Insurance Contributions Act (FICA) taxes consist of two distinct components: Social Security and Medicare taxes. These taxes fund federal programs that provide retirement, disability, and healthcare benefits. Both employees and employers contribute to FICA taxes, with each paying a specified percentage of the employee’s wages.

For 2025, the Social Security tax rate is 6.2% for employees, with employers matching that amount for a combined total of 12.4%. This tax applies to wages up to an annual wage base limit, which is $176,100 for 2025. Wages earned above this limit are not subject to Social Security tax.

The Medicare tax rate, however, is 1.45% for employees and 1.45% for employers, with no wage base limit, meaning it applies to all earned income. Additionally, employees with higher incomes may be subject to an Additional Medicare Tax of 0.9% on earnings exceeding certain thresholds, such as $200,000 for single filers, a tax not matched by employers.

Common Non-Tax Paycheck Deductions

Beyond federal taxes, paychecks often include non-tax deductions that reduce an employee’s net pay. These deductions are typically for benefits or services elected by the employee or required by other obligations. Common examples include health insurance premiums for medical, dental, or vision plans.

Many employees contribute to retirement plans like 401(k)s or 403(b)s, often as pre-tax deductions that reduce taxable income. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are other common pre-tax deductions for healthcare or dependent care expenses. Other possible deductions include union dues, wage garnishments for debts, or charitable contributions, which can be pre-tax or post-tax.

Factors Influencing Your Paycheck Deductions

The final amount taken from a paycheck is influenced by several factors. Gross pay is foundational, as most taxes and percentage-based deductions are calculated based on this figure. Higher gross pay results in larger deductions.

The settings an employee establishes on their Form W-4 significantly impact the amount of federal income tax withheld. Adjustments for dependents or additional withholding requests directly alter how much is taken from each paycheck.

The selection and amount of pre-tax deductions, such as contributions to a 401(k) or health savings account, directly reduce the income subject to federal income tax and FICA taxes, influencing overall deductions. The frequency of pay (e.g., weekly, bi-weekly, or monthly) also plays a role, as deductions are spread across fewer or more pay periods throughout the year.