Texas Paystub Generator - Zero Income Tax (4 Constitutional Amendments), Property Tax Trade-Off, 3-Line Stub, Free Preview
Last updated: | ePaystubs Editorial Team
Texas doesn't just skip income tax. It has built a constitutional fortress around it. Between 2019 and 2025, voters approved four separate constitutional amendments banning income tax, wealth tax, capital gains tax, estate tax, and securities transaction tax. Changing any of this requires a two-thirds supermajority in both legislative chambers PLUS a statewide voter referendum. Per RelocateMeTX (March 2026): "the state has made it constitutionally harder to change this than virtually any policy in American governance."
Your Texas pay stub has three deduction lines. Federal income tax, Social Security, Medicare. Nothing else. But here's what the "no income tax" headline doesn't tell you: Texas has the 2nd highest property tax in America. A $400,000 home costs $6,400 to $10,000 per year in property tax. A $700,000 home in Austin can run $13,000 per year. The state makes up for zero income tax by taxing your house. Our Texas paystub generator handles the paycheck side (three clean federal lines), and this page gives you the full picture so you know exactly where your money goes.
Federal calculations per the IRS. FICA per SSA. Two minutes. No signup. Free preview.
Works for employees, contractors, and small business owners across Houston, Dallas, San Antonio, Austin, Fort Worth, El Paso, and all of Texas.
| State Income Tax | ZERO. Prohibited by 4 constitutional amendments (2019-2025). |
| Local Income Tax | None anywhere in Texas |
| Stub Lines | 3 only: Federal, Social Security, Medicare |
| Property Tax | ~1.40-1.80% avg (2nd highest in US). $100K homestead exemption (2023). |
| Sales Tax | 6.25% state + up to 2% local = 8.25% max. Groceries EXEMPT. |
| SDI / PFML / PSL | None, none, none |
| SUI Employee Share | $0 (employer-paid only, $9,000 wage base since 1997) |
| All Retirement Income | Not taxed (no state tax on any income) |
| Minimum Wage | $7.25/hr (federal, no TX state law). Tipped: $2.13. |
| Workers' Comp | OPTIONAL for private employers (only state in America) |
"I transferred from our LA office to Houston. Same company, same title, same base salary. My California state tax was running about $500 a month. My first Texas paycheck had three deduction lines instead of five, and the state line was just gone. $500 a month I'm keeping now. Over three years that's $18,000."
"We bought a house in Round Rock and our property tax bill is $8,400 a year on a $425,000 home. That's almost $700 a month just in property tax. The income tax savings are real, but the property tax surprise hits hard when you're coming from a state with lower property taxes. Make sure you budget for both sides."
Texas Has Zero Income Tax and 4 Constitutional Amendments Say It Stays That Way
Texas doesn't rely on a single law or a single constitutional clause to protect its zero-tax status. Between 2019 and 2025, voters approved four separate constitutional amendments that collectively ban income taxes, wealth taxes, capital gains taxes, estate taxes, and securities transaction taxes. Per RelocateMeTX: "Between 2019 and 2025, Texas voters approved four separate constitutional amendments that collectively ban income taxes, wealth taxes, capital gains taxes, estate taxes, and securities transaction taxes."
The most significant is Proposition 4 (2019), which passed with 74.35% support. It requires a two-thirds majority in both chambers of the legislature just to put an income tax proposal on the ballot, and then it would need to win a statewide voter referendum. The legislature alone can't create an income tax. Even a simple legislative majority can't do it. You'd need a supermajority plus the voters. That's a near-impossible bar.
Per CountryTaxCalc (May 2026): "Texas voters approved Proposition 4 in 2019, amending the constitution to explicitly prohibit both individual and corporate income taxes." South Dakota's 2024 constitutional amendment is similar in spirit, but Texas went further with four separate amendments covering every conceivable form of income-based taxation.
The result for workers: every dollar of employment income is taxed only at the federal level. No state line on your stub. No state W-4. No state tax return. No state quarterly estimates. Three deduction lines and you're done.
The 3-Line Pay Stub: Federal, Social Security, Medicare
| Deduction Line | Texas | California | New York |
|---|---|---|---|
| Federal Income Tax | Yes | Yes | Yes |
| Social Security (6.2%) | Yes | Yes | Yes |
| Medicare (1.45%) | Yes | Yes | Yes |
| State Income Tax | $0 | 1%-13.3% | 4%-10.9% |
| Local/City Tax | $0 | $0 | NYC 3.876% |
| State Disability (SDI) | $0 | SDI 1.1% | SDI deduction |
| Paid Family Leave | $0 | $0 | PFL deduction |
| Total Lines | 3 | 5+ | 6+ |
A Texas worker sees three lines. A California worker sees five or more. A New York City worker can see six or more (federal, SS, Medicare, NY state, NYC city, SDI/PFL). The difference isn't just visual. At $100,000 income, the CA worker loses roughly $5,200 to state tax and SDI. The NYC worker loses even more to the combined state and city tax. The Texas worker loses $0 to the state.
What Gets Taken Out of a Texas Paycheck: Houston vs. Los Angeles on the Same Salary
Houston Energy Worker, $40/hr, Biweekly
Setup: Carlos works at an energy company in Houston. He earns $40/hr, biweekly, 80 hours, files Single on federal W-4. Annual gross: $83,200.
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $40.00) | $3,200.00 |
| 1. Federal Income Tax | - $440.00 |
| 2. Social Security, 6.2% | - $198.40 |
| 3. Medicare, 1.45% | - $46.40 |
| State Income Tax | $0 |
| Estimated Net Pay | About $2,515 |
Three lines. $2,515 net on $3,200 gross. Carlos keeps 78.6% of his paycheck. The only deductions are federal.
The Same Worker in Los Angeles, California
Setup: Same salary ($40/hr, $83,200/year), same hours, same filing status. California has a progressive income tax up to 13.3% and a 1.1% SDI contribution.
| Line Item | Houston, TX | Los Angeles, CA |
|---|---|---|
| Gross Pay | $3,200.00 | $3,200.00 |
| Federal Income Tax | - $440.00 | - $440.00 |
| Social Security | - $198.40 | - $198.40 |
| Medicare | - $46.40 | - $46.40 |
| State Income Tax | $0 | - $224.00 |
| CA SDI (1.1%) | N/A | - $35.20 |
| Estimated Net Pay | About $2,515 | About $2,256 |
| Difference | $259/biweekly = $6,734/year = $561/month | |
$561 per month. $6,734 per year. On the exact same $83,200 salary. Over a 30-year career, that's $202,020 in cumulative state income tax savings before any investment growth. Per CountryTaxCalc: at $150,000 income, the gap widens to approximately $14,200 per year, and "accumulates to over $700,000 over a 50-year working career at compound growth." That's the math driving the California-to-Texas migration wave.
Austin Tech Worker, $50/hr, Biweekly
Setup: Priya works at a tech company in Austin (relocated from San Jose). She earns $50/hr, biweekly, 80 hours, files Single. Annual gross: $104,000.
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $50.00) | $4,000.00 |
| 1. Federal Income Tax | - $625.00 |
| 2. Social Security, 6.2% | - $248.00 |
| 3. Medicare, 1.45% | - $58.00 |
| Estimated Net Pay | About $3,069 |
Priya's California state tax on this salary would have been roughly $340 per biweekly check ($8,840/year). She's keeping that entire amount now. But her Austin property tax on a $550,000 home runs about $10,450/year ($871/month), which partially offsets the savings. The net benefit depends on whether you're renting (full savings) or buying (savings minus property tax increase vs. your prior state).
Estimates based on 2026 federal rates and standard withholding. Actual amounts depend on your federal W-4 and voluntary deductions.
The Real Trade-Off: Property Tax at 1.4-1.8% (2nd Highest in America)
Texas funds its state and local governments without income tax by taxing property. Per CountryTaxCalc (May 2026): "Texas property taxes average between 1.6% and 2.5% of assessed value, among the highest effective rates in the country." Per AARP (March 2026): the statewide effective rate is approximately 1.40%. Only New Jersey has higher property taxes.
| Metro Area | Approximate Effective Rate | Annual Tax on $400K Home |
|---|---|---|
| Austin (Travis County) | ~1.80-2.0% | ~$7,200-$8,000 |
| Houston (Harris County) | ~1.70-2.2% | ~$6,800-$8,800 |
| Dallas (Dallas County) | ~1.60-2.0% | ~$6,400-$8,000 |
| San Antonio (Bexar County) | ~1.50-1.8% | ~$6,000-$7,200 |
| Fort Worth (Tarrant County) | ~1.60-2.0% | ~$6,400-$8,000 |
| Rural West Texas | ~0.50-1.0% | ~$2,000-$4,000 |
The school district levy typically represents 50-60% of the total property tax bill per CountryTaxCalc. That's why the $100,000 homestead exemption (which applies to the school district portion) makes such a big difference.
The $100,000 Homestead Exemption (Increased in 2023, Saves $1,500+/Year)
In 2023, Texas voters approved a major increase to the school district homestead exemption, raising it from $40,000 to $100,000. If your home is your primary residence, the first $100,000 of its assessed value is exempt from school district property taxes. At a typical school district rate of roughly 1.0-1.5%, this saves homeowners approximately $1,000 to $1,500 per year. An additional $10,000 exemption is available for residents age 65 or older or those with disabilities.
Appraisal increases are capped at 10% per year for homesteaded properties. This means even in a hot market where home values jump 20% in a year, your taxable assessed value can only increase by 10%. Per CountryTaxCalc: "Texas caps appraisal increases at 10% per year, but this is less protective over decades than California's 2% cap."
Sales Tax at 8.25% (But Groceries Are Exempt)
Texas charges a 6.25% state sales tax on most goods and services. Cities, counties, transit authorities, and special districts can add up to 2%, bringing the maximum combined rate to 8.25%. Most major Texas cities (Houston, Dallas, Austin, San Antonio, Fort Worth) are at or near the 8.25% maximum.
The big advantage over Tennessee: Texas exempts groceries from sales tax. Unprepared food for home consumption is completely tax-free. So are prescription drugs and, since 2024, baby items like diapers and wipes. Per RelocateMeTX: "Important exemptions keep the sales tax from being as burdensome as the headline rate suggests." Tennessee taxes groceries at 4% state plus local additions. Florida also exempts groceries. For a family spending $12,000 per year on groceries, the Texas exemption saves roughly $750-$990 compared to Tennessee.
Per CountryTaxCalc: a household spending $50,000 per year on taxable goods and services at 8.25% pays approximately $4,125 in Texas sales tax. Spending $60,000: roughly $4,950.
Texas vs. Tennessee vs. Florida: The Three Zero-Tax Giants Compared
These are the three largest zero-income-tax states. People comparison-shop between them constantly, whether for jobs, retirement, or business relocation. Here's how the total tax burden actually breaks down:
| Factor | Texas | Tennessee | Florida |
|---|---|---|---|
| Income tax | 0% | 0% | 0% |
| Constitutional ban? | Yes (4 amendments) | No formal ban | No formal ban |
| Property tax (avg) | ~1.60% | ~0.66% | ~0.80% |
| $500K home (annual) | ~$8,000 | ~$3,300 | ~$4,000 |
| Sales tax (avg) | ~8.25% | ~9.55% | ~7.0% |
| Groceries taxed? | Exempt | 4%+ state + local | Exempt |
| $60K spending (annual) | ~$4,950 | ~$5,700 | ~$4,200 |
| Estate tax | None | None | None |
| Total ($500K home + $60K spend) | ~$12,950 | ~$9,000 | ~$8,200 |
Florida is the cheapest overall for homeowners. Tennessee is second. Texas has the highest total because of property tax. On a $500,000 home, Texas charges $4,700 more per year than Tennessee and $4,000 more than Florida. Texas partially makes up for it with lower sales tax than Tennessee and a grocery exemption that Tennessee doesn't offer. But for homeowners, the property tax gap is hard to close.
For renters, the comparison shifts. Without the property tax burden, Texas's 8.25% sales tax and zero income tax make it very competitive. A renter earning $80,000 in Houston keeps more than the same renter in Nashville (where TN's higher sales tax on everything including groceries erodes the advantage) and comparable to Miami.
Every Type of Retirement Income Is Untaxed in Texas
Since Texas has no state income tax on anything, all retirement income is completely exempt: Social Security, pensions (government and private), 401(k) distributions, IRA withdrawals, military retirement, capital gains, dividends, interest, annuities, and royalties. There's no income limit, no age requirement, and no partial exemption. Zero means zero.
Combined with no estate tax (constitutionally banned), no inheritance tax, the $100,000 homestead exemption, and additional property tax exemptions for those 65+, Texas is one of the most retirement-friendly tax environments in the country. Per Paystub Studio: "Texas is one of the most tax-friendly states for retirees. No form of retirement income is subject to state income tax."
The catch is property tax. A retired couple living in a $350,000 home in San Antonio might pay $5,250-$6,300 per year in property taxes (after the homestead exemption and 65+ exemption). A similar home in Florida might cost $2,800-$3,500. The income tax savings are identical (both zero), so the property tax gap becomes the deciding factor for retirees choosing between the two states.
Texas Payroll Requirements 2026: What Every Employer Needs to Know
| Requirement | What TX Requires | Official Source |
|---|---|---|
| State income tax | ZERO. 4 constitutional amendments prohibit it. | RelocateMeTX |
| State W-4 | None needed | Netchex |
| Local income tax | None anywhere in TX | Paylocity |
| SDI / PFML / PSL | None, none, none | Paylocity |
| SUI (employer only) | Wage base $9,000 (since 1997). New employer: 2.70%. Experienced: 0.32%-6.32%. | TWC (Official) |
| Minimum wage | $7.25/hr (federal, no TX law). Tipped: $2.13. | OnPay |
| Workers' comp | OPTIONAL for private employers (only state in America) | TX Payroll Guide |
| Overtime | 1.5x after 40 hrs/week (federal FLSA only) | U.S. DOL |
| Final pay | 6 days after discharge. Next payday for voluntary quit. | TX Payroll Guide |
| New hire reporting | Within 20 days | TWC |
| Sales tax | 6.25% state + up to 2% local = 8.25% max. Groceries exempt. | Tax Foundation |
| Property tax | ~1.40-1.80% avg. $100K homestead exemption. +$10K for 65+/disabled. | AARP |
| Estate/inheritance tax | None (constitutionally banned) | TX Constitution |
Who Uses the Texas Paystub Generator?
Houston Energy Workers
Houston is the energy capital of the world. ExxonMobil (Irving/Houston), ConocoPhillips, Halliburton, Schlumberger, Baker Hughes, and hundreds of smaller operators are headquartered in the Houston metro. The Permian Basin in West Texas and the Eagle Ford Shale in South Texas employ tens of thousands of roughnecks, drillers, engineers, and pipeline workers at wages ranging from $60,000 to $200,000+. All of that income is state-tax-free. Energy workers also need stubs for housing in oil field towns and for proving income during cyclical downturns.
Austin Tech Workers
Tesla's Gigafactory. Oracle (relocated from California). Samsung's semiconductor fab. Dell Technologies in Round Rock. Apple's expanding campus. Google, Meta, and Amazon offices. Austin has absorbed a massive wave of tech workers from California's Bay Area and Seattle. A $150,000 tech salary that lost $14,200 to California state tax now keeps every dollar in Texas. The catch is Austin's property taxes (Travis County is one of the highest in Texas), but renters and early-career workers come out well ahead.
Dallas-Fort Worth Corporate Workers
AT&T (Dallas). American Airlines (Fort Worth). ExxonMobil's Irving campus. Texas Instruments (Dallas). BNSF Railway (Fort Worth). Toyota North America (Plano). The DFW metroplex is one of the largest corporate headquarters clusters in America, and every worker at every company benefits from zero state income tax.
San Antonio Military and Healthcare Workers
Joint Base San Antonio is the largest joint base in the Department of Defense, combining Fort Sam Houston, Lackland Air Force Base, and Randolph Air Force Base. USAA (military insurance, San Antonio HQ). H-E-B (Texas grocery chain, San Antonio HQ). Valero Energy. The Methodist and Baptist health systems employ thousands. Active duty choosing Texas as their legal residence pay zero state tax on all military income.
Military Bases Statewide
Fort Cavazos (formerly Fort Hood, Killeen) is one of the largest active-duty Army installations in the world. Fort Bliss (El Paso) is near the New Mexico border. NAS Corpus Christi trains naval aviators. NAS Fort Worth JRB serves reserve and Guard units. NASA Johnson Space Center in Houston employs thousands of engineers and scientists. Military members, civilian contractors, and military spouses all benefit from zero state tax.
Small Business Owners and Contractors
A BBQ joint in Lockhart. A roofing company in Lubbock. A cattle ranch in the Panhandle. A dental practice in Plano. A fishing charter in Port Aransas. Texas small businesses enjoy the simplest payroll environment: no state withholding, no state W-4, three stub lines. Workers' comp is even optional (the only state where that's true). Self-employed workers carry the full 15.3% FICA self-employment tax per IRS rules but owe zero to Texas.
How to Create a Texas Pay Stub: 3 Steps
Texas payroll is among the simplest in America. No state tax. No state W-4. Three deduction lines. Enter your federal info and the tool handles everything.
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Enter company and employee info
Business name, address, employee name, address, pay period dates. No state withholding form needed (there's no state tax). Federal W-4 determines federal withholding. -
Enter earnings and deductions
Hourly rate or salary (at least $7.25/hr, or $2.13 for tipped employees), hours worked, any overtime. Add voluntary deductions. The tool calculates federal income tax, Social Security (6.2% up to $184,500), and Medicare (1.45%) automatically. -
Free preview, then download
Check every line. Gross pay, three mandatory federal deductions, voluntary deductions, net pay, YTD totals. Download when satisfied.
When You Need a Texas Pay Stub as Proof of Income
Renting in Houston, Dallas, Austin, San Antonio, or Anywhere in TX
Austin's East Side, South Congress, and Mueller areas have competitive rental markets driven by tech migration. Houston's Montrose, Heights, and Midtown are popular. Dallas's Uptown and Deep Ellum attract young professionals. San Antonio's Pearl District is growing. Landlords want two to three recent stubs showing gross monthly income of at least 2.5 to 3 times the rent. Texas stubs with three clean lines are simple to verify.
TX HHSC Programs (SNAP, Medicaid)
The Texas Health and Human Services Commission requires current income documentation for SNAP and Medicaid applications through the YourTexasBenefits portal. Pay stubs are the standard accepted document.
Common Questions About Texas Pay Stubs
Does Texas have income tax?
No. Zero. Protected by 4 constitutional amendments (2019-2025). Requires two-thirds supermajority + voter referendum to ever change. Covers income tax, wealth tax, capital gains tax, estate tax, and securities transaction tax. The strongest protection of any zero-tax state.
What deductions are on a TX pay stub?
Three lines: federal income tax, Social Security (6.2%), Medicare (1.45%). No state line. No local line. No SDI, PFML, PSL, or SUI employee share.
Why is TX property tax so high?
Because Texas has no income tax and uses property tax as a primary revenue source. Average effective rate ~1.40-1.80% (2nd highest behind NJ). $400K home = $6,400-$10,000/year. The $100K homestead exemption (increased 2023) saves $1,500+/year.
How much do TX workers save vs CA?
At $83K: ~$6,734/year. At $150K: ~$14,200/year. Over 50 years: $700K+ at compound growth. Per CountryTaxCalc. The CA-to-TX migration wave is driven by these numbers.
How does TX compare to TN and FL?
All zero income tax. TX property ~1.60% vs TN 0.66% vs FL 0.80%. TX sales 8.25% vs TN 9.55% vs FL 7.0%. TX and FL exempt groceries, TN doesn't. Total on $500K home + $60K spending: TX ~$12,950, TN ~$9,000, FL ~$8,200. FL cheapest for homeowners.
Does TX tax retirement income?
No. Zero tax on SS, pensions, 401(k), IRA, military retirement, dividends, capital gains, everything. No estate tax. No inheritance tax. $100K homestead + extra $10K for 65+.
What is TX minimum wage?
$7.25/hr (federal, no TX state law). Tipped: $2.13. Cities can't set higher (TX Supreme Court ruling). Average hourly wage well above $7.25. Workers' comp is optional (only state in America).
Official Sources Referenced on This Page
Texas Workforce Commission (2026) confirmed the SUI wage base ($9,000, unchanged since 1997), new employer rate (2.70%), experienced employer range (0.32%-6.32%), and the 5-component rate formula.
RelocateMeTX (March 2026) provided the most detailed analysis of the constitutional amendments, Prop 4 (74.35% approval), the four separate tax bans, and the two-thirds supermajority requirement.
CountryTaxCalc No-Income-Tax Guide (May 2026) provided the $14,200/year CA comparison at $150K, the $700K+ career savings figure, and the property tax range data.
CountryTaxCalc Texas Tax Guide (May 2026) provided the $100K homestead exemption details, county-level property tax variations, and the $700K Austin home example.
Paystub Studio (February 2026) confirmed the constitutional prohibition, the retirement-friendly status, and the military base listing.
Texas Payroll Guide (March 2026) confirmed SUI details, workers' comp optional status, final pay rules (6 days after discharge), and minimum wage.
OnPay (June 2026) confirmed SUI rates, minimum wage, and the $9,000 wage base history.
Paylocity (January 2026) confirmed no SDI, no PFML, no PSL, and no reciprocal agreements.
AARP (March 2026) confirmed the 1.40% effective property tax rate, the $100K homestead exemption, and the sales tax exemptions.
Wealthvieu (April 2026) and USTax.tools (June 2026) confirmed the overall tax structure and retirement-friendly status.
TX HHSC covers income verification for SNAP and Medicaid programs.
IRS Topic 751 covers FICA rates (6.2% SS, 1.45% Medicare). SSA confirms the 2026 wage base at $184,500. IRS Publication 15 provides federal withholding tables.
Ready to Create Your Texas Pay Stub?
Texas has zero state income tax, protected by four constitutional amendments and a statewide voter requirement. Three deduction lines. The simplest paycheck in the country. The trade-off is property tax (2nd highest in America), but the $100,000 homestead exemption helps. Our generator calculates your federal income tax, Social Security, and Medicare, and produces a clean three-line stub.
Free preview. No signup. Federal calculations per IRS. FICA per SSA. Updated June 2026.