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Taxes
Texas Payroll Taxes 2026: Complete Overview for Employers
No state income tax, but employers still owe FICA, FUTA, and Texas SUI via TWC. Full breakdown of rates and obligations.
Practical guides on TX payroll taxes, TWC registration, SUI, and wage laws — written for small business owners, not accountants. No state income tax.
Texas has no personal income tax — zero state withholding for employees. That means simpler payroll, but you still owe FICA, FUTA, and Texas SUI.
Federal minimum wage, no daily overtime, no mandatory workers' comp, and state preemption of local wage ordinances. Texas keeps it simple for employers.
Register with the Texas Workforce Commission, file quarterly C-3 wage reports, and manage your SUI rate. We walk you through every step.
No state income tax, but employers still owe FICA, FUTA, and Texas SUI via TWC. Full breakdown of rates and obligations.
Register at twc.texas.gov within 10 days of first paying wages. Get your employer account number and start filing.
New employer rate 2.7%, experienced employers 0.23%–6.23%, wage base $9,000. Experience rating explained.
Texas minimum wage is $7.25/hr — the federal floor. Tipped minimum $2.13/hr. State preempts local ordinances.
Semi-monthly pay required, final pay within 6 days for terminations, next payday for voluntary quits.
Texas is the only state where workers' compensation is optional. What non-subscribers risk and how premiums work.