Texas Hourly Pay Raise Calculator
Compare your current and new hourly wages to estimate the extra take-home pay from a raise in Texas. Because Texas levies no state personal income tax under Article VIII of the Texas Constitution, workers in Texas retain 100% of their hourly raise after statutory federal taxes and FICA. This calculator models the marginal difference per paycheck for 2026.
Hourly Pay Raise Estimate
2026 Tax YearCompare wages and estimate take-home pay • Runs in your browser
0% state income tax. Every extra dollar earned stays subject only to federal & FICA taxes.
Current base rate (min wage: $7.25)
New proposed rate or offer
Standard full-time is 40 hrs/wk
Simulate working 5 overtime hours per week under both wage levels.
Estimated additional take-home pay received every 2 weeks after modeled federal, FICA, and state taxes.
Tax Year 2026 Modeled Estimates: Based on federal statutory tax brackets, standard deductions ($16,100 Single / $32,200 Married), FICA (7.65%), and Texas tax rules.
Does not include local/city taxes, employer pre-tax benefits (health insurance, 401(k)), or personal tax credits. Actual paychecks will vary based on your employer's payroll withholding tables and IRS Form W-4 elections.
Where Does Your Raise Actually Go?
Estimated breakdown of how each additional dollar of your raise is split between take-home pay and tax withholdings.
What This Raise Covers in Real Life
Tangible monthly purchasing power this extra cash brings to your household.
Covers ~10.8 fill-ups of gasoline every single month ($45/tank avg).
Full monthly grocery budget offset + surplus (covers ~1.0 months based on ~$475/mo).
Straight into an emergency cushion, debt payoff, or family vacation fund.
Texas Pay Raise Facts (2026)
Texas levies 0% state personal income tax on wage earnings, meaning hourly wage increases are entirely exempt from state-level income tax withholdings. The state statutory minimum wage baseline is set at $7.25/hour. Because there is no state income tax, deductions from your pay raise are limited strictly to federal income tax and statutory 7.65% FICA (Social Security and Medicare), allowing workers to retain a higher percentage of every dollar earned compared to taxable states.
Worked Example: $2/hr Raise in Texas ($20/hr → $22/hr, 40 hrs/wk)
2,080 Hours/Year Baseline| Pay Frequency / Calculation | Gross Increase | Estimated After-Tax |
|---|---|---|
| Weekly | +$80.00 | +$64.28 |
| Biweekly | +$160.00 | +$128.56 |
| Monthly | +$346.67 | +$278.55 |
| Annual Gross | +$4,160.00 | — |
| Estimated After-Tax Annual Increase | — | +$3,342.56 |
*After-tax estimates assume a Single filer taking the standard deduction with no dependents. Use the calculator above to model your specific filing status and withholdings.
Does Texas tax a pay raise?
No. Texas levies 0% personal state wage income tax under state law. Any hourly pay raise is subject only to federal income tax and mandatory 7.65% FICA withholdings (6.2% Social Security and 1.45% Medicare), with zero state-level income tax deducted from your paycheck.
How much is a $2 an hour raise in Texas per year?
A $2 an hour raise equals $4,160 in gross extra income per year for a full-time employee working 40 hours per week (52 weeks × 40 hours × $2.00/hr = $4,160). After subtracting federal income tax, statutory 7.65% FICA, and 0% state tax, a single filer is estimated to take home approximately $3,343 per year (about $129 extra per biweekly paycheck). Use the calculator above to model your specific filing status, hours, and custom wage difference.
Texas Wage Raise Benchmark Table (40 hrs/week)
How standard raises starting from $18.00/hr convert into estimated take-home pay in Texas.
| Hourly Raise | New Wage | Bi-Weekly Take-Home | Monthly Cash | Annual Net Bump | % Kept |
|---|---|---|---|---|---|
| +$1.00/hr | $19.00/hr | +$64.28 | +$139.27 | +$1,671 | 80.3% |
| +$2.00/hr | $20.00/hr | +$128.56 | +$278.55 | +$3,343 | 80.3% |
| +$3.50/hr | $21.50/hr | +$224.98 | +$487.46 | +$5,849 | 80.4% |
| +$5.00/hr | $23.00/hr | +$321.40 | +$696.37 | +$8,356 | 80.4% |
Texas Tax Rules & Calculation Assumptions
Transparent breakdown of the tax parameters applied to your Texas pay raise estimate.
What This Calculator Models
- Texas levies 0% personal state income tax under Article VIII, Section 24-a of the Texas Constitution (Texas Comptroller of Public Accounts).
- Federal income tax modeled with standard deductions ($16,100 Single / $32,200 Married Filing Jointly) and statutory federal brackets for Tax Year 2026 (Pub. L. 119-21 / IRS Rev. Proc. 2025-32).
- Statutory FICA taxes modeled at 6.2% Social Security (up to the $184,500 wage base) and 1.45% Medicare (Tax Year 2026).
- Texas statutory minimum wage matches the federal Fair Labor Standards Act (FLSA) rate of $7.25/hour baseline (Texas Labor Code Chapter 62).
Calculation Scope & Exclusions
This tool is an hourly pay raise calculator, designed specifically to estimate the marginal difference in take-home pay resulting from a wage change. It is not a full paycheck or payroll tax stub simulator.
- •Does not model voluntary employer pre-tax benefit elections (401(k), health insurance, HSA/FSA).
- •Does not model individual federal tax credits (Child Tax Credit, Earned Income Tax Credit) or itemized deductions.
- •Calculates employee take-home pay; does not model employer-side taxes (Texas Franchise Tax or unemployment insurance).
Texas Hourly Paycheck Breakdown (2026)
Estimated gross and after-tax take-home earnings across standard hourly wage tiers (40 hrs/week, Single filer).
Under state law, Texas levies 0% personal state income tax on employee compensation, with an official minimum wage baseline of $7.25/hour. Because Texas imposes no state wage withholdings, paychecks are subject only to federal income tax and statutory 7.65% FICA (Social Security and Medicare) contributions. The table below outlines standard gross earnings alongside estimated after-tax take-home pay across hourly wages from $15 to $40/hour for single filers working 40 hours per week in 2026.
| Hourly Wage | Weekly Gross | Biweekly Gross | Monthly Gross (avg) | Annual Gross | Est. Biweekly Take-Home | Est. Annual Take-Home |
|---|---|---|---|---|---|---|
| $15.00/hr | $600.00 | $1,200.00 | $2,600.00 | $31,200.00 | $1,048.05 | $27,249.20 |
| $20.00/hr | $800.00 | $1,600.00 | $3,466.67 | $41,600.00 | $1,369.45 | $35,605.60 |
| $25.00/hr | $1,000.00 | $2,000.00 | $4,333.33 | $52,000.00 | $1,690.85 | $43,962.00 |
| $30.00/hr | $1,200.00 | $2,400.00 | $5,200.00 | $62,400.00 | $2,012.25 | $52,318.40 |
| $40.00/hr | $1,600.00 | $3,200.00 | $6,933.33 | $83,200.00 | $2,590.82 | $67,361.20 |
Looking to compare a raise or wage increase as a percentage? Use our Wage Increase Calculator.
Assumptions: 40 hrs/wk • Single filer • Tax Year 2026Frequently Asked Questions About Hourly Pay Raises
Clear answers on calculating wage differences, pay period conversions, overtime compounding, and tax withholding.
Hourly Wage Tax Rates in All 50 US States
Click your state to see pre-loaded paycheck raise calculations, state tax rules, and local minimum wages.