Texas employer payroll tax calculator 2026
Hiring in Texas? New Texas employers pay 2.7% state unemployment tax on the first $9,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $4,875 a year in employer payroll taxes — $243.00 of it to Texas.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (2.7% on $9,000.00) | $243.00 |
| Employer payroll taxes | $4,875.00 |
| Total cost before benefits | $64,875.00 |
Per two-week payroll: $2,495.19. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Texas unemployment tax (SUTA) for new employers
For 2026 the entry-level rate is 2.70% for all industries.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Texas on time and FUTA is 0.6% on the first $7,000. If Texas ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Texas payroll programs
Texas has no state paid-leave or disability program with an employer share, and no other broad state payroll tax on employers.
What an employee costs in Texas
| Salary | Federal employer taxes | Texas employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $243.00 | $43,345.00 | 8.4% |
| $60,000 | $4,632.00 | $243.00 | $64,875.00 | 8.1% |
| $100,000 | $7,692.00 | $243.00 | $107,935.00 | 7.9% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Texas?
About $43,345 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $243.00 of Texas employer taxes, before benefits. That's $1,667.12 per two-week payroll.
How much does a $60,000 employee cost in Texas?
About $64,875 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $243.00 of Texas employer taxes, before benefits. That's $2,495.19 per two-week payroll.
How much does a $100,000 employee cost in Texas?
About $107,935 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $243.00 of Texas employer taxes, before benefits. That's $4,151.35 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $9,610 a year taken out of pay — federal income tax, their own Social Security and Medicare — and takes home $50,390 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $4,875.00 of employer taxes. See the employee's side line by line in the Texas paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Texas figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Texas Workforce Commission — Tax rates — for 2026, the entry-level rate is 2.70% for all groups with no exceptions (checked 2026-09-28)
- Texas Workforce Commission — New Texas employers — taxes on the first $9,000 per employee per year
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Texas SUTA rate for new employers?
2.7% in 2026, on the first $9,000 of each employee's wages. For 2026 the entry-level rate is 2.70% for all industries.
What is the Texas unemployment tax wage base for 2026?
$9,000 per employee per year.
How much does it cost to employ someone for $60,000 in Texas?
About $64,875 a year before benefits: $4,632.00 of federal employer taxes and $243.00 for Texas, at the new-employer rate with 5 employees.