How Paycheck Taxes Work in Texas
Every paycheck in Texas is subject to federal income tax, FICA (Social Security at 6.2% and Medicare at 1.45%), and no state income tax — making it one of the 9 states with no state income tax.
The median household income in Texas is $67,000/year. At that income level, a single filer faces a federal effective tax rate of roughly 12–15%, plus FICA of 7.65%.
Texas vs. National Average
| Tax | Texas | National |
|---|---|---|
| State Income Tax (top rate) | None | ~5.5% avg |
| Federal Income Tax (median earner) | ~12% | ~12% |
| FICA (SS + Medicare) | 7.65% | 7.65% |
| Cost of Living Index | 95 | 100 |