Texas Paystub Generator

State Income Tax

Texas has no state personal income tax and, under an amendment to the Texas Constitution passed by voters in November 2025, is now also permanently prohibited from taxing individual capital gains. This means your Texas paystub will never show a state income tax withholding line — every dollar of your gross wages is yours before federal taxes touch it.

What does appear on every Texas paystub is the full federal picture: income tax withheld based on your W-4 filing status and allowances, Social Security at 6.2% on wages up to $176,100, and Medicare at 1.45% on all wages. For higher earners, the Additional Medicare Tax of 0.9% applies to wages above $200,000 for single filers or $250,000 for married filers.

Texas is one of nine states with no income tax, alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. The practical difference shows up fast: a Texas worker earning $80,000 a year takes home roughly $4,000–$6,000 more annually than an equivalent worker in California or New York, depending on filing status.

State-Specific Mandatory Deductions

Texas has no state disability insurance (SDI), no paid family leave (PFL) program, and no employee-paid state unemployment contribution. The only unemployment tax in Texas — SUTA — is paid entirely by employers, not employees, at a rate between 0.23% and 6.23% on the first $9,000 of wages. None of this appears as a deduction on employee paystubs.

There are also no local income taxes anywhere in Texas. No city, county, or school district levies an income tax on wages. Unlike Ohio, Pennsylvania, or Kentucky — where dozens of municipalities tax worker paychecks — Texas residents pay zero local income tax regardless of which city or county they work in.

Recent Legislative Context (2026)

The Texas Constitution amendment passed in November 2025 permanently prohibits any future state income tax or capital gains tax, removing what had long been a political risk for the state's no-tax status. Additionally, Texas voters approved a $125,000 business personal property tax exemption effective January 1, 2026, which primarily affects small business owners rather than employees.

Mandatory Paystub Delivery

Texas is classified as an access/print state under payroll law. The Texas Payday Law requires employers to provide a written earnings statement — commonly called a paystub — every payday. Employers may deliver these electronically, but only if employees have a reasonable ability to access and print the record. An employer cannot simply email a PDF and call it done if the employee lacks the means to print it. The burden is on the employer to ensure genuine access.

This means Texas employers cannot silently switch to electronic-only delivery without confirming employees can actually use it. An employee who raises the issue can file a complaint with the Texas Workforce Commission, which has authority to investigate violations under Chapter 61 of the Texas Labor Code.

Required Information on a Texas Paystub

Under Texas labor law, every paystub must include the total amount of pay earned in the pay period, each deduction and its purpose, and the net amount after all deductions. The Texas Minimum Wage Act adds additional requirements for non-exempt employees, including hours worked and the applicable pay rate. For piece-rate workers, the number of units produced must also appear.

At minimum, a compliant Texas paystub contains: employee name, employer name, pay period dates, hourly rate or salary, total hours worked (for non-exempt employees), gross pay, all itemized deductions (federal income tax, Social Security, Medicare, and any voluntary deductions), and net pay.

Pay Frequency Requirements

Texas sets different pay frequency rules by employee classification. Non-exempt employees (those eligible for overtime) must be paid at least twice per month — semi-monthly at minimum. Exempt employees may be paid monthly. Employers who violate the Texas Payday Law's timing requirements face TWC complaints and potential back-pay orders.

Record Retention

Texas does not specify a state-level record retention period separate from the federal standard. Under the FLSA, employers must retain payroll records for three years and records relating to wage calculations for two years. Texas employers should use the federal three-year minimum as their floor.

Oil, Gas, and Energy Workers

Texas employs more than 490,000 workers directly in oil and natural gas, earning an average of $128,255 per year — 76% above the state's private-sector average. For these workers, paystub accuracy is critical and often complicated.

The most common payroll issue in the Texas energy sector is misclassification. Oilfield workers — particularly rig hands, pipeline technicians, and well-service contractors — are frequently treated as independent contractors when they legally qualify as employees, resulting in missing overtime pay and absent paystubs altogether. The U.S. Department of Labor has actively pursued Texas energy companies over these violations. If you work on a day-rate basis in the Permian Basin, the Eagle Ford Shale, or along the Gulf Coast refineries, verify whether your classification is correct. Employees are owed overtime; contractors are not.

For legitimate contractors in the energy sector, paystubs are not provided by clients — income appears on a 1099-NEC at year-end. A self-generated paystub from our paystub generator is often the only documentation available when these workers need proof of income for a mortgage or rental application.

Tipped Workers

Texas follows the federal tipped minimum wage of $2.13 per hour, with a maximum tip credit of $5.12. Combined tip income and direct wages must reach $7.25 per hour, or the employer must make up the difference. Texas has no additional tip credit restrictions beyond federal law, and there are no mandatory tip pooling rules specific to the state.

On a Texas paystub, tipped workers will see their direct cash wages as gross pay, with federal income tax withheld on declared tip income. The paystub does not separately break out tip amounts — that tracking happens on Form 4070 or through electronic tip reporting systems.

Texas State Employees and Teachers

State and local government employees in Texas participate in the Teacher Retirement System of Texas (TRS) or the Employees Retirement System of Texas (ERS), depending on their agency. Both systems appear as deductions on public-sector paystubs and are not subject to Social Security in most cases — Texas public employees are among the approximately 6.5 million government workers nationally who do not contribute to Social Security.

This means a Texas teacher's paystub looks different from a private-sector worker's: no Social Security withholding (6.2%), but a TRS contribution of 8.25% of gross salary instead. Medicare (1.45%) still applies.

The most common Texas-specific use cases for paystubs are driven by the state's housing market and independent workforce.

Texas has seen aggressive rent growth in its major metros — Austin, Dallas-Fort Worth, Houston, and San Antonio all rank among the fastest-appreciating rental markets in the country. Landlords in these markets routinely require two to three months of paystubs as proof of income, and many require documentation showing income at 2.5× to 3× monthly rent. For workers who recently started a job, changed employers, or receive irregular income, our check stub maker produces the documentation landlords expect.

Texas also has one of the highest concentrations of self-employed and 1099 workers nationally, particularly in construction, technology, and oil services. These workers have no employer-generated paystubs. When applying for SBA loans, conventional mortgages, or state programs like the Texas State Affordable Housing Corporation, self-employed individuals need organized income documentation. A properly generated paystub showing consistent earnings is often accepted alongside tax returns.

For state-administered programs, including Medicaid, CHIP, and SNAP in Texas, the Health and Human Services Commission requires recent income verification. Paystubs from the last 30 days are the standard accepted format.

Your final Texas paystub of the year is the document to cross-reference when your W-2 arrives. The year-to-date totals in Box 1 (federal wages) and Box 4 (Social Security withheld) should match your last paystub's cumulative figures almost exactly, with minor differences explained by pre-tax deductions like 401(k) contributions or health insurance premiums.

State Tax Reporting on Texas W-2s

Because Texas has no state income tax:

• Box 15 will show "TX" as the state abbreviation and your employer's Texas state tax ID, but this is an identification field — no withholding number accompanies it.
• Box 16 (state wages) will typically mirror Box 1 or be blank, depending on your employer's payroll software. There is nothing unique about Texas state wages because they are not separately taxed.
• Box 17 (state income tax withheld) will show $0.00 or be left blank. If you see any dollar amount in Box 17 on a Texas W-2, contact your payroll department immediately — this indicates an error.
• Boxes 18–20 (local wages and taxes) will be blank for all Texas employees, as no Texas jurisdiction imposes a local income tax.

Multi-State Workers

Texas residents who work remotely for employers in other states face a more complex W-2. Your employer may withhold income tax for the state where their business is located, even if you work entirely from Texas. Whether that withholding was correct depends on the specific state's rules — some states (like New York) tax non-residents on all income earned from companies located there. If you see out-of-state withholding on your W-2, review your state allocation or consult a tax professional.

Conversely, Texas workers who temporarily work in other states — traveling consultants, oilfield workers on assignment in North Dakota or Pennsylvania — may owe income tax in those states. Your Texas W-2 boxes 15–17 will still show Texas and $0, but you may receive a separate W-2 or need to file in the other state.

Verifying Your W-2 Against Your Paystubs

Compare your final December paystub's year-to-date totals with your W-2:

• YTD gross pay should closely match Box 1 (after pre-tax deductions are subtracted)
• YTD Social Security withheld should match Box 4 (capped at $10,918.20 for 2026, which is 6.2% × $176,100)
• YTD Medicare withheld should match Box 6
• Boxes 15–17 confirm $0 Texas state tax — if any of those figures are nonzero, there's an error

Generate Your Texas W-2 Form

Need to create a W-2 for Texas employees? Our Texas W-2 Generator handles the state fields automatically — Box 15 populates with TX, Box 17 correctly shows $0, and the form reflects the no-income-tax status without manual intervention. Generate accurate W-2 forms in minutes.