TaxBandits Knowledge Base

What are the taxes applicable to Texas?

Minimum Wage Information for Texas
Texas is one of the states with a minimum wage rate that is the same as the federal minimum wage rate.

Minimum wage	$7.25
Tipped Minimum wage	$2.13
Maximum Tip Credited	$5.12

Unemployment Insurance (UI) rate for Texas
UI taxes are used to provide benefits for the unemployed who have lost their job with no fault on them. However, employers with fewer employees may not be liable for this tax.

Maximum Taxable Wages	$9,000
Employee Deduction	None
Employer Tax Rates	0.5 - 6.5%
New Employer Tax Rates	2.70%

Applicable taxes
Here are the Texas taxes that are applicable to employees and employers.

• Employer taxes

Texas State Unemployment Tax

• Employee taxes & Local taxes

Texas does not require employee taxes and local taxes.

Texas State Income tax
Texas is one of the states that does not collect state income taxes (SIT)

More Information
To gather more information about Texas state tax, check out the Workforce Commission.