Want more in each check from the overtime or tips deductions? Use the W-4 calculator. It shows the Step 4(b) amount to give your employer, so less federal tax comes out of every paycheck.
Worked example: a warehouse worker paid weekly
$18 an hour, 45 hours a week, paid every week, single, a 2020 or later W-4 with nothing else filled in.
Gross pay: 40 × $18 = $720, plus 5 overtime hours × $27 (time and a half) = $135. Total $855.
Federal income tax: $855 × 52 = $44,460, minus $8,600 = $35,860. From the 2026 single table: $1,240 + 12% of the $15,960 over $19,900 = $3,155.20 a year, or $60.68 a week.
Social Security: 6.2% × $855 = $53.01. Medicare: 1.45% × $855 = $12.40. Texas: $0.
Take-home pay: $855 − $60.68 − $53.01 − $12.40 = $728.91 a week, about $37,903 a year.
Without the 5 overtime hours, the same worker takes home $620.44 a week, so those hours add $108.47 to the check after tax. For 2025 through 2028, the extra half of time-and-a-half pay ($9 × 5 hours = $45 a week here) can also be deducted on the federal return; see the no tax on overtime calculator, or the W-4 calculator to get it in each check instead.
A long overtime week: 60 hours
The same worker puts in 60 hours one week: 40 × $18 = $720, plus 20 × $27 = $540. Total $1,260.
Federal income tax: $1,260 × 52 = $65,520, minus $8,600 = $56,920; $1,240 + 12% of the $37,020 over $19,900 = $5,682.40 a year, or $109.28 for the week. Social Security $78.12, Medicare $18.27.
Take-home pay: $1,054.33 for the week.
The 15 extra hours over a 45-hour week add $405 of pay and $325.42 of take-home, about 80 cents of each extra dollar: 12% federal income tax plus 7.65% for Social Security and Medicare. Overtime has no special tax rate. Payroll does treat a big week as if every week were that big, so if that pushes you into the next tax bracket, a one-off long week can have a little more withheld than your yearly tax needs. The difference comes back when you file.
What comes out of a Texas paycheck
| Deduction | 2026 rate | Notes |
|---|---|---|
| Federal income tax | Depends on pay and W-4 | Worked out from your Form W-4 with IRS Publication 15-T |
| Social Security | 6.2% | Stops after $184,500 of pay in the year |
| Medicare | 1.45% | Plus 0.9% on pay over $200,000 in the year |
| Texas income tax | None | Texas Constitution, Article 8, Section 24-a |
| Texas unemployment tax | None from you | Employers pay it. Texas Labor Code §204.003: "An employer may not deduct any part of a contribution from the wages" of an employee |
| City or county income tax | None | No Texas city or county has an income tax. The Texas Comptroller has said wages are not subject to any Texas state or local income tax (letter 9610803L, 1996) |
What else your employer may take out
Texas Labor Code §61.018 lets an employer withhold or divert part of your wages only if a court orders it (child support, for example), a state or federal law allows it (like federal income tax), or you gave written permission for a lawful purpose. So a 401(k), health insurance or union dues need your signature. The Texas Workforce Commission adds that repaying a loan from your employer also needs written authorization, and your employer can't hold your final check to get back company property unless the law, a court or your written consent allows the deduction.
Texas payday rules
- How often: if you're paid overtime under federal law, at least twice a month; employees exempt from overtime, at least once a month (Texas Labor Code §61.011).
- Final paycheck: within 6 calendar days if you're fired or laid off; by the next regular payday if you quit (Texas Labor Code §61.014).
- Minimum wage: Texas uses the federal minimum wage (Texas Labor Code §62.051), which is $7.25 an hour.
Not paid what you're owed? File a wage claim
File a wage claim with the Texas Workforce Commission no later than 180 days after the pay was due. The deadline is strict: the law calls it "a matter of jurisdiction" (Texas Labor Code §61.051). The claim goes on the commission's form and you must verify it, meaning you confirm it's true. You can file in person at a commission office, by mail, by fax or online. Keep your pay stubs and a record of your hours to back it up.
Why your real Texas check may differ a little
This is an estimate. Payroll may use the IRS wage bracket tables or round differently, a bonus paid on its own can have a flat 22% federal tax withheld (IRS Publication 15, section 7), and after-tax deductions such as a Roth 401(k) or union dues aren't included. Your pay stub is the final word, and this isn't payroll or tax advice. Every assumption is listed on how we calculate.
Common questions
Does Texas have a state income tax?
No. The Texas Constitution (Article 8, Section 24-a) says the legislature may not impose a tax on the net incomes of individuals. No Texas city or county has an income tax either. Only federal income tax, Social Security and Medicare come out of a Texas paycheck, plus deductions you agree to, like a 401(k).
How much is taken out of a paycheck in Texas?
For most workers, 7.65% for Social Security and Medicare plus federal income tax, which depends on your pay and W-4. A single worker earning $855 a week takes home $728.91: $60.68 federal income tax, $53.01 Social Security and $12.40 Medicare, about 14.7% in all.
Is overtime taxed more in Texas?
No. Overtime is taxed like the rest of your pay, with no Texas income tax. At $18 an hour, going from 45 to 60 hours in a week adds $405 of pay and $325.42 of take-home. For 2025 through 2028, the extra half of time-and-a-half pay can also be deducted on your federal return, up to $12,500 ($25,000 joint).
When do I get my final paycheck in Texas?
Within 6 calendar days if you're fired or laid off, and by your next regular payday if you quit, according to the Texas Payday Law (Labor Code §61.014). If it doesn't arrive, you can file a wage claim with the Texas Workforce Commission within 180 days.
Can my employer take money out of my Texas paycheck?
Only if a court orders it, a state or federal law allows it, or you agreed in writing for a lawful purpose (Texas Labor Code §61.018). That covers a child support order, federal tax withholding, and a 401(k) or health plan you signed up for. Your employer can't take Texas unemployment tax from your pay (Labor Code §204.003).
Updated November 7, 2026. Sources: IRS Publication 15-T (2026), Federal Income Tax Withholding Methods (December 3, 2025), Worksheet 1A and the 2026 Annual Percentage Method tables; IRS Publication 15 (2026), Employer's Tax Guide (December 15, 2025): Social Security and Medicare rates, the $184,500 wage base and Additional Medicare Tax withholding (section 9), overtime and tips (sections 5 and 6), supplemental wages (section 7), 401(k), 403(b) and cafeteria plans (section 15); IRS Publication 15-B (2026) (December 23, 2025), Table 2-1, accident and health benefits; Texas Constitution, Article 8, Section 24-a; Texas Labor Code Chapter 61 (Payday Law: §61.011, §61.014, §61.018, §61.051), Texas Labor Code §204.003 (unemployment contributions) and §62.051 (minimum wage); Texas Workforce Commission, Texas Payday Law; Texas Comptroller of Public Accounts, STAR letter 9610803L (1996: no state or local income tax on individuals); Fair Labor Standards Act, 29 U.S.C. §206 and §207.