Texas Payroll Tax & Labor Law Quick Reference (2026)
Texas payroll taxes at a glance
Texas has no state income tax, so there is no state income tax withholding to manage. Running payroll in Texas means handling federal income tax withholding, Social Security and Medicare (FICA), and Texas state unemployment insurance (SUTA) through the Texas Workforce Commission. The SUTA wage base and rate update yearly, so build from current figures each January.
Minimum wage and overtime
Texas does not set its own minimum wage — it follows the federal minimum of $7.25 an hour. Overtime also follows the federal FLSA: 1.5x the regular rate after 40 hours in a workweek. There is no Texas-specific daily overtime or higher state minimum to track.
State registration and filings
Because there is no state income tax, your main state obligation is registering for and paying unemployment tax (SUTA) with the Texas Workforce Commission and filing quarterly wage reports. Federal income tax withholding, FICA, and FUTA still apply on the federal side. Late or incorrect filings trigger penalties that dwarf the cost of getting it right.
Final paychecks and recordkeeping
Under the Texas Payday Law, final pay is due within six calendar days of an involuntary termination, and by the next regular payday when an employee quits. Keep payroll records on file as federal and state rules require. Missing a final-paycheck deadline is an easy, avoidable violation.
Make it automatic
MyCo applies Texas and federal rules to every pay run and produces payroll-ready data; US payroll tax filing is configured during onboarding through your payroll provider. For a quick estimate, try the Texas paycheck calculator or read the Texas labor-law reference.
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What payroll taxes apply in Texas?
Texas has no state income tax, so there is no state income tax withholding. You handle federal income tax, Social Security and Medicare (FICA), and Texas state unemployment insurance (SUTA).
Does Texas have its own minimum wage or overtime rules?
No. Texas follows the federal minimum wage of $7.25 an hour and the federal FLSA overtime rule of 1.5x after 40 hours in a workweek.
Can MyCo file my state payroll taxes?
Yes. MyCo calculates withholding and produces payroll-ready data automatically; US payroll tax filing is configured during onboarding through your payroll provider.