Texas is one of the few states in the US that does not have a state income tax, which means that your salary is only subject to federal income taxes if you live and work in Texas. Therefore, the only taxes that are taken out of a paycheck in Texas are federal taxes. Here is a list of the federal taxes that are typically taken out of a paycheck in Texas:
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Federal Income Tax: This is a tax on your income that is collected by the federal government. The amount of federal income tax that is taken out of your paycheck depends on your income level and the number of exemptions you claim on your W-4 form.
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Social Security Tax: This is a tax that is collected to fund the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals. The Social Security tax rate is 6.2% of your gross income, up to a certain limit.
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Medicare Tax: This is a tax that is collected to fund the Medicare program, which provides health insurance to eligible individuals. The Medicare tax rate is 1.45% of your gross income, with no limit.
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Unemployment Tax: This is a tax that is collected to fund the states unemployment insurance program. Employers are responsible for paying this tax, which is based on the amount of wages paid to employees.
Its important to note that these taxes are just the federal taxes that are typically taken out of a paycheck in Texas. Other deductions, such as pre-tax deductions for retirement accounts or post-tax deductions for health insurance, may also be taken out of your paycheck depending on your employers policies.
