Texas Employer Payroll Tax Calculator

How to use

1. Enter total annual wages paid to all employees, before deductions.
2. Enter the number of employees on payroll.
3. Confirm the Texas UI rate and taxable wage base from your TWC notice, then enter them.
4. Read employer FICA, FUTA, state UI, the combined total, and the cost per employee.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance); content last reviewed September 2026. For decisions that matter, confirm with a licensed professional in your country.

About this tool

This calculator estimates what an employer pays on top of wages in Texas: the matching share of Social Security and Medicare at 7.65 percent, federal unemployment tax at 0.6 percent, and Texas unemployment insurance at the rate and wage base you enter. Texas new employers generally start at a 2.7 percent UI rate on the first 9,000 dollars of each employee's wages; confirm the figure on your current Texas Workforce Commission notice and enter your own numbers if they differ. The engine applies the UI base and the Social Security cap per employee using average wages, a simplification for mixed-pay teams. Experience rating moves the assigned rate down as your account matures. Estimates use published federal rates and the Texas UI figures entered; verify against your TWC rate notice; not tax or legal advice.Texas collects no state income tax on wages, yet unemployment insurance still applies, so the employer stack never drops to zero. After the full FUTA credit, the effective federal unemployment rate is 0.6 percent on the first 7,000 dollars per worker. Over time, an unemployment claim history feeds the experience rating and can push a stable account well below the 2.7 percent new-employer start.

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