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Texas payroll taxes (2026)

Quick answer: A new Texas employer pays 2.7% state unemployment tax on the first $9,000 of each employee’s wages (up to $243.00 per employee), on top of 7.65% federal FICA and 0.6% FUTA. A $60,000 employee costs about $64,875 before benefits.

A new Texas employer pays 2.7% state unemployment tax on the first $9,000 of each employee’s wages (up to $243.00 per employee), on top of 7.65% federal FICA and 0.6% FUTA. A $60,000 employee costs about $64,875 before benefits.

Add benefits, your SUTA rate and other costs

Where do these numbers come from?

Checked Oct 23, 2026. A $75,000 salary in California: Social Security 6.2% = $4,650 (SSA 2026 wage base $184,500), Medicare 1.45% = $1,087.50, FUTA 0.6% × $7,000 = $42 (IRS Publication 15), California UI 3.4% + 0.1% ETT on the first $7,000 = $245 (EY 2026 chart). Total $81,024.50, the figure this calculator shows. Automated tests repeat this and 20 more US checks.

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Texas employer payroll taxes at a glance

Tax2026 rateWage baseMax per employee
Texas unemployment (new employer)2.7%$9,000$243.00
Social Security (employer)6.2%$184,500$11,439.00
Medicare (employer)1.45%No limitNo limit
FUTA (after full state credit)0.6%$7,000$42.00

Rate detail: Or your industry average if higher.

Rate year shown: 2026. After the first years, Texas assigns an experience rate based on your claims history; use the rate on your notice. Source: EY Tax News, SUI wage bases and tax rates for 2026 (updated 29 Jul 2026).

Employer cost by salary in Texas

SalarySocial SecurityMedicareFUTASUTATotal cost before benefits
$40,000$2,480.00$580.00$42.00$243.00$43,345
$60,000$3,720.00$870.00$42.00$243.00$64,875
$75,000$4,650.00$1,087.50$42.00$243.00$81,022
$100,000$6,200.00$1,450.00$42.00$243.00$107,935

Withholding from employee paychecks

Employers withhold federal income tax, 6.2% Social Security and 1.45% Medicare from every paycheck. There is no state income tax withholding. Texas has no state income tax, so there is no state withholding from paychecks; the main state payroll tax is unemployment tax paid to the Texas Workforce Commission.

Getting set up

Register with the Texas unemployment insurance agency when you first pay wages in the state, get a federal EIN, file Form 941 quarterly and Form 940 annually, and send new-hire reports to the state. Employees are generally covered by the state where they physically work.

Sources: SSA 2026 fact sheet (Social Security wage base $184,500); IRS Publication 15 (2026); US DOL, FUTA credit reductions. State unemployment rates are new-employer rates for 2026; your assigned rate may differ.

Related

Frequently asked questions

What payroll taxes do employers pay in Texas?

Federal Social Security (6.2%), Medicare (1.45%) and FUTA (0.6% on $7,000), plus Texas unemployment tax (2.7% on the first $9,000 for new employers in 2026).

What is the Texas SUTA wage base?

$9,000 per employee for 2026.

Does Texas have state income tax withholding?

No. Texas has no state income tax on wages.

How much does a $75,000 employee cost in Texas?

About $81,022 a year before benefits, health insurance and workers’ compensation.