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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, accurate resources for Texas small business owners — covering payroll taxes, labor laws, and compliance.
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 quarterly C-3 reports.
New employer rate 2.7%, experienced employers 0.23%–6.23%, wage base $9,000. Experience rating and Replenishment Tax explained.
Texas minimum wage is $7.25/hr — the federal floor. Tipped minimum $2.13/hr with tip credit. State preempts local ordinances.
Semi-monthly pay required, final pay within 6 calendar days for terminations, next payday for voluntary quits. TWC wage claims.
Texas is the only state where workers' compensation is optional. What non-subscribers risk and how premiums are based on payroll.