The Texas Constitution and Income Tax
Texas voters approved Proposition 4 in November 2019. It added Article 8, Section 24-a to the state constitution, which forbids the legislature from taxing the net incomes of individuals, including a person's share of partnership income.
Before 2019 a 1993 rule only required a public vote before such a tax. The amendment closed that route. Repealing it now needs a constitutional amendment approved by voters.
For a worker this means the paycheck math is short and stable. Federal law sets every withheld tax, so a Texas pay stub looks the same in Houston, El Paso or Amarillo.
Deductions on a Texas Pay Stub
Three lines are required by federal law:
- Federal income tax, based on your W-4 and the 2026 brackets.
- Social Security, 6.2% of wages up to $184,500.
- Medicare, 1.45% with no cap, plus 0.9% above $200,000.
Texas unemployment tax is charged to the employer by the Texas Workforce Commission, so it never reduces your pay. Optional lines, like 401(k) savings or a health plan, are the only other things you may see.
Worked Example: Married Couple on $72,000
| Line | Per year | Per month |
|---|---|---|
| Gross pay | $72,000 | $6,000 |
| Federal income tax | −$4,280 | −$356.67 |
| Social Security | −$4,464 | −$372 |
| Medicare | −$1,044 | −$87 |
| Net pay | $62,212 | $5,184.33 |
Joint federal taxable income is $39,800 after the $32,200 standard deduction. Federal income tax is $4,280, and total deductions equal 13.6% of pay.
Texas Salary After Tax Table
Single filer in 2026, salary only:
| Salary | Federal income tax | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $35,000 | $2,020 | $4,697.50 | $30,302.50 | $2,525.21 |
| $50,000 | $3,820 | $7,645 | $42,355 | $3,529.58 |
| $70,000 | $6,570 | $11,925 | $58,075 | $4,839.58 |
| $90,000 | $10,970 | $17,855 | $72,145 | $6,012.08 |
| $150,000 | $24,734 | $36,209 | $113,791 | $9,482.58 |
| $210,000 | $39,134 | $53,708 | $156,292 | $13,024.33 |
At the top row Social Security stops at the $184,500 cap, while the extra 0.9% Medicare starts above $200,000.
A Single Worker on $45,000
Entry level pay in Texas loses $6,662.50 a year to federal lines: $3,220 of income tax, $2,790 of Social Security and $652.50 of Medicare. That is 14.8% of gross pay.
| Pay schedule | Gross per paycheck | Net per paycheck |
|---|---|---|
| Weekly (52) | $865.38 | $737.26 |
| Every two weeks (26) | $1,730.77 | $1,474.52 |
| Twice a month (24) | $1,875 | $1,597.40 |
| Monthly (12) | $3,750 | $3,194.79 |
Overtime and Bonuses in Texas
Overtime and bonus money only meet federal tax in Texas, which matters in shift heavy fields such as refining, construction and trucking. Bonuses are often withheld at a flat 22% federal rate, which can be more or less than you finally owe. The Bonus Tax Calculator shows that split.
Federal law allows a deduction for some qualified overtime pay for 2025 to 2028. This calculator does not apply it, so overtime earners may owe a little less federal tax than shown.
What Texas Does Not Tax
- Wages, salary and tips.
- Interest, dividends and capital gains of individuals.
- Retirement income and Social Security benefits.
The state relies on sales tax and local property tax, which you pay when you buy or own, not through payroll.
Moving to Texas From a Taxing State
When you start a Texas job, the state withholding line simply disappears from your stub. A few points are worth checking in the first months.
- Your old state return. You still file a part year return where you lived before, covering the wages earned there.
- Remote work for an out of state employer. Some states tax a remote worker's pay based on where the employer sits. Ask payroll which state code they use.
- Living costs. Higher property tax and sales tax take back part of the saving. The Cost of Living Calculator compares price levels between states.
To see the change in money, enter the same salary on this page and on your former state's page, then compare the two net figures.
Assumptions and Limits
- Wages from one employer, standard deduction, no federal credits.
- No pre tax benefits unless you lower the salary yourself.
- Annual tax owed; withholding on each paycheck can differ.
Sources: Texas Constitution Article 8, Section 24-a; IRS Rev. Proc. 2025-32; Social Security Administration wage base. Rates for 2026.
Frequently Asked Questions
Is there a state income tax in Texas in 2026?
No. Article 8, Section 24-a of the Texas Constitution bars a personal income tax.
What is $45,000 after tax in Texas?
About $38,337.50 a year for a single filer, or $1,474.52 every two weeks.
Does Texas have state disability or paid leave deductions?
No. Texas has no employee funded disability or paid family leave program, and unemployment tax is paid by employers.
Why is my Texas paycheck smaller than gross?
Federal income tax, Social Security and Medicare, plus any benefits you chose, come out of every check.
Do Texas cities tax wages?
No Texas city or county taxes wages. Local governments fund themselves mainly through property and sales tax.
Can I compare Texas with Louisiana or Oklahoma?
Yes. Open the Louisiana or Oklahoma page and enter the same salary to see the state tax difference.
Does Texas tax my 401(k) withdrawals later?
No. Retirement income is free of Texas tax as well, so only the federal government taxes traditional 401(k) withdrawals.