Texas paychecks in 2026: what changed
Texas's own rules did not change for 2026 — there is still no state income tax, and the minimum wage is still the federal rate. The changes that reach your paycheck are federal.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Texas minimum wage: still $7.25, the federal rate, unchanged since July 24, 2009.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 Texas paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Texas Constitution, Article 8, Section 24-a — the legislature may not tax the net incomes of individuals (adopted November 5, 2019)
- Texas Workforce Commission — Unemployment Tax Basics — unemployment taxes are not deducted from employee wages; first $9,000 of pay is taxable
- Texas Workforce Commission — Texas Minimum Wage Law — Texas adopts the federal $7.25 minimum wage
- Texas Guidebook for Employers — Allowable Deductions Under the FLSA — $2.13 cash wage for tipped employees
- Texas Workforce Commission — Texas Payday Law — paydays, allowed deductions, 180-day wage claims
- Texas Guidebook for Employers — Final Pay — Labor Code § 61.014
- Texas Guidebook for Employers — What the FLSA does and does not do — overtime after 40 hours in a workweek