Single / Married Filing Separately
Married Filing Jointly / Qualifying Widow(er)
Head of Household
Deductions
Understanding Your Texas Pay Stub
Navigating your pay stub can sometimes feel like deciphering a secret code, but understanding its components is crucial for managing your finances. This guide will help you understand the various elements of a typical pay stub, specifically for employees in Texas.
Gross Pay
Your gross pay is the total amount of money you earned before any deductions are taken out. If you're an hourly employee, this is calculated by multiplying your hourly rate by the number of hours you worked. For salaried employees, it's your annual salary divided by the number of pay periods in a year (e.g., 26 for bi-weekly, 12 for monthly).
Pre-Tax Deductions
These are deductions taken from your gross pay before taxes are calculated. Common pre-tax deductions include:
401(k) or 403(b) Contributions: Retirement savings plans.
Health, Dental, and Vision Insurance Premiums: Your share of the cost for these benefits.
Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Accounts for healthcare or dependent care expenses.
Pre-tax deductions reduce your taxable income, meaning you pay less in federal income tax and sometimes state income tax (though not applicable in Texas).
Federal Taxes
The federal government levies several taxes on your income:
Federal Income Tax (FIT): This is a progressive tax, meaning higher earners pay a larger percentage. The amount withheld depends on your gross pay, filing status (Single, Married Filing Jointly, Head of Household), and information provided on your W-4 form (such as dependents and other adjustments).
FICA Taxes (Social Security and Medicare): These are mandatory contributions to federal programs.
Social Security: Funds retirement, disability, and survivor benefits. The current rate is 6.2% of your gross wages, up to an annual wage base limit ($168,600 for 2024).
Medicare: Funds healthcare for the elderly and disabled. The current rate is 1.45% of all your gross wages, with no wage base limit. An additional 0.9% Medicare tax applies to wages over certain thresholds ($200,000 for single filers, $250,000 for married filing jointly).
Texas State Taxes
One of the significant advantages of working in Texas is that there is no state income tax. This means a larger portion of your gross pay goes directly into your pocket compared to employees in states with state income taxes. You will still pay federal taxes, but your state tax deduction will always be zero.
Post-Tax Deductions
These deductions are taken out of your pay *after* all applicable taxes have been calculated and withheld. Examples include:
Roth 401(k) Contributions: Unlike traditional 401(k)s, these are funded with after-tax dollars, meaning qualified withdrawals in retirement are tax-free.
Garnishments: Court-ordered deductions for debts like child support or unpaid taxes.
Union Dues: Fees paid to a labor union.
Charitable Contributions: If deducted directly from your paycheck.
Net Pay
Your net pay, also known as "take-home pay," is the amount of money you actually receive after all pre-tax deductions, federal taxes, FICA taxes, and post-tax deductions have been subtracted from your gross pay. This is the amount that gets deposited into your bank account or issued as a check.
Using the Calculator
Our Texas Pay Stub Calculator helps you estimate your net pay by factoring in your gross earnings, pay frequency, federal withholding information (based on your W-4), and any pre- or post-tax deductions. Simply input your details, and the calculator will provide a breakdown of your estimated take-home pay.
Gross Pay: $${grossPayPerPeriod.toFixed(2)}
Pre-Tax Deductions: $${preTaxDeductionsPerPeriod.toFixed(2)}
Social Security Tax: $${ssTaxPerPeriod.toFixed(2)}
Medicare Tax: $${medicareTaxPerPeriod.toFixed(2)}
Federal Income Tax: $${federalTaxPerPeriod.toFixed(2)}
Texas State Income Tax: $${texasStateTaxPerPeriod.toFixed(2)}
Post-Tax Deductions: $${postTaxDeductionsPerPeriod.toFixed(2)}
Net Pay: $${netPayPerPeriod.toFixed(2)}
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}
// Run calculation on page load with default values
window.onload = calculatePayStub;