Reading a Texas pay stub, line by line
A Texas pay stub is the simplest in the country to read — and that's official policy. Texas has no state income tax (it's banned by the Texas Constitution, Article 8, Section 24-a), no state disability insurance, no paid-leave deduction, and no city or local income taxes anywhere in the state.
That leaves exactly three involuntary deductions on a standard Texas stub:
- Federal income tax — withheld per your W-4
- Social Security — 6.2% of wages up to $184,500 (2026)
- Medicare — 1.45% of all wages (+0.9% above $200,000)
What you should never see: an "unemployment tax" deduction. Texas unemployment insurance is 100% employer-paid, and Labor Code §204.003 makes it illegal for an employer to deduct any part of it from your wages. If a Texas stub shows an employee-paid SUI or UI line, something is wrong.
Everything else on a Texas stub — health premiums, 401(k), garnishments — is either voluntary or court-ordered, and each deduction must be listed with its purpose (that's state law; see below).
Texas paycheck facts — 2026
| Item | 2026 value |
|---|---|
| State income tax | None — constitutionally prohibited |
| State SDI / PFL deductions | None |
| Local income taxes | None statewide |
| Employee-paid unemployment tax | None — deducting it is illegal (LC §204.003) |
| Minimum wage | $7.25/hr (federal rate, adopted by LC §62.051) |
| City minimum wages | Preempted for private employers (LC §62.151) |
| Pay frequency law | Semimonthly (non-exempt); monthly (exempt) |
| Pay stub required? | Yes — written earnings statement (LC §62.003) |
What you actually take home in Texas (2026 estimates)
Estimated for a single filer taking the standard deduction — only federal tax, Social Security, and Medicare come out:
| Gross pay | Est. net per year | Net biweekly | Net monthly | Effective tax |
|---|---|---|---|---|
| $40,000 | $34,320 | $1,320 | $2,860 | 14.2% |
| $60,000 | $50,390 | $1,938 | $4,199 | 16.0% |
| $75,000 | $61,592 | $2,369 | $5,133 | 17.9% |
| $100,000 | $79,180 | $3,045 | $6,598 | 20.8% |
| Minimum wage, full-time ($7.25/hr) | $13,926 | $536 | $1,161 | 7.6% |
A $75,000 earner keeps about $3,900 more per year in Texas than in California and about $3,800 more than in New York — the no-income-tax advantage in real dollars.
Methodology: 2026 federal brackets and $16,100 standard deduction (IRS Rev. Proc. 2025-32), FICA per SSA. Estimates only — your withholding depends on your W-4, credits, and pre-tax benefits.
What Texas jobs pay (BLS, May 2025)
| Occupation | Median hourly | Median annual |
|---|---|---|
| Registered nurse | $46.14 | $95,970 |
| Software developer | $63.54 | $132,150 |
| Elementary school teacher | — | $62,760 |
| Truck driver (heavy) | $27.06 | $56,290 |
| Construction laborer | $19.53 | $40,620 |
| Customer service rep | $19.44 | $40,420 |
| Retail salesperson | $14.81 | $30,800 |
| Waiter / waitress | $11.18 | $23,240 |
Texas's median hourly wage across all occupations is $23.38 (national median: $24.51) — but with no state tax, Texas net pay at the median beats many higher-wage states.
Texas's workforce in numbers
- 31.7 million residents, civilian labor force of 15.9 million — second largest in the nation (Census 2025 estimate; BLS, June 2026)
- 3,092,631 self-employed (nonemployer) businesses (Census, 2023) — third most in the US, behind California and Florida. That's roughly 1 for every 10 Texans, and none of them get an employer pay stub
- 670,878 employer establishments (Census, 2023)
- Mean annual wage: $65,750 (BLS OEWS, May 2025)
Texas pay rules — the three answers people actually need
Final paycheck: Faster than most states when you're let go. Fired or laid off in Texas, your final check is due within 6 calendar days (Labor Code §61.014). If you quit, it's due on the next regularly scheduled payday. Unpaid? File a wage claim with the Texas Workforce Commission — but the deadline is short: 180 days from when the wages were due.
Pay frequency: Non-exempt employees must be paid at least twice a month in roughly equal periods; exempt employees at least monthly. If an employer never designates paydays, Texas law sets them automatically: the 1st and 15th (LC §61.012).
Is a pay stub required? Yes — despite what many websites claim. Labor Code §62.003 requires a written earnings statement at the end of each pay period showing your name, pay rate, total pay, each deduction and its purpose, net pay, and hours worked (or piece-rate units). It can be electronic or printed on the check voucher, but it must exist.
One rate statewide
Texas preempts city minimum wages for private employers (LC §62.151) — Austin, Houston, and Dallas can set higher pay only for their own city workers and contractors. Private-sector pay floors are identical in all 254 counties, and no Texas city or county taxes your paycheck. What you see on a Texas stub in El Paso is what you see in Houston.
How Texas compares with big-state rivals (take-home on $60,000, 2026 est.)
| State | Est. net/year | Difference vs TX |
|---|---|---|
| Texas | $50,390 | — |
| Florida (no state income tax) | $50,390 | $0 |
| California | $47,817 | −$2,573 |
| New York | $47,457 | −$2,933 |
Texas and Florida paychecks are identical at the same salary — the difference between the two comes down to cost of living, not withholding.
FAQ
Why is there no state tax on my Texas paycheck?
Because Texas has no personal income tax — it's prohibited by the Texas Constitution (Article 8, Section 24-a). Texas stubs show only federal income tax, Social Security, and Medicare as involuntary deductions.
How much tax comes out of a paycheck in Texas?
Only federal taxes. A single filer at $60,000 keeps about $50,390 a year — roughly $1,938 per biweekly check — a 16% effective rate covering federal income tax, Social Security, and Medicare.
Does Texas require employers to give pay stubs?
Yes. Labor Code §62.003 requires a written earnings statement every pay period listing pay rate, total pay, each deduction with its purpose, net pay, and hours worked. Electronic statements are allowed.
When is my final paycheck due in Texas?
Within 6 calendar days if you were fired or laid off; by the next regular payday if you quit. Claims go to the Texas Workforce Commission within 180 days.
Can my Texas employer deduct unemployment tax from my check?
No — that's illegal. Texas unemployment insurance is entirely employer-paid, and Labor Code §204.003 expressly forbids deducting any part of it from wages.
Is the minimum wage higher in Austin or Houston?
Not for private employers. Texas law preempts city minimum wages except for city employees and contractors, so the $7.25 federal rate applies to private jobs statewide.