State Payroll Taxes and Filings
Every state asks employers for something different: unemployment insurance, disability and paid leave, workers' comp, and taxes like Nevada's Modified Business Tax. Pick your state to see what to register for and file, and what a year of payroll costs.
Estimated yearly payroll taxes in Texas
On $304,000 of wages a year. An estimate to plan with; your payroll provider and the agencies have the final numbers.
You pay as the employer
$25,766
You withhold from paychecks
$23,256
Not counting income tax withholding
| Tax or program | Who pays | Rate | On | Per year |
|---|---|---|---|---|
| State unemployment insurance (SUI)By law the entry-level rate for each industry group is the higher of the group's calculated average or 2.70%. For 2026 it is 2.70% for all groups with no exceptions. | employer | 2.7% | first $9,000 per employee | $1,944 |
| Replenishment Tax Rate (RTR)Part of every employer's effective rate for 2026, not an extra bill. | employer | 0.21% | first $9,000 per employee | $151 |
| Interest Tax RatePays interest on federal loans to Texas; same for all employers. No Bond Obligation Assessment and no Deficit Tax Rate for 2026. | employer | 0.01% | first $9,000 per employee | $7 |
| Employment and Training Investment Assessment (ETIA)Separate 0.10% assessment on wages, but by law the RTR is reduced by the same amount, so the total rate does not go up. | employer | 0.1% | first $9,000 per employee | $72 |
| Social Security(federal) | employer | 6.2% | first $184,500 | $18,848 |
| Social Security(federal) | employee | 6.2% | first $184,500 | $18,848 |
| Medicare(federal) | employer | 1.45% | all wages | $4,408 |
| Medicare(federal)Plus 0.9% on one person's wages over $200,000. | employee | 1.45% | all wages | $4,408 |
| Federal unemployment (FUTA)(federal)6.0% less the 5.4% credit for paying state unemployment on time. Some states have a credit reduction, announced each November. | employer | 0.6% | first $7,000 per employee | $336 |
What to register for and file in Texas
State income tax withholding
Texas has no state income tax on wages, so there is nothing to withhold.
No state or local income tax withholding on wages.
State unemployment insurance
Taxable on the first $9,000 each person earns. New employers usually start at 2.7%. Experienced rates run 0.32% to 6.32% for 2026.
File every quarter: Employer's Quarterly Report (Form C-3) and Wage List (Form C-4), filed online in TWC's Unemployment Tax Services (UTS), due Last day of the month after each quarter: April 30, July 31, October 31, January 31.
Effective rate = General Tax Rate + Replenishment Tax Rate + Obligation Assessment + Deficit Tax Rate + ETIA. Register for an account online through TWC's Unemployment Tax Registration (UTR). Mailed reports only for employers with an electronic hardship waiver.
Texas Workforce Commission (TWC)Workers' compensation
Optional for most private employers. An employer that does not carry it (a non-subscriber) with one or more non-exempt employees must file a notice of no coverage with the Texas Department of Insurance, Division of Workers' Compensation (DWC Form-005) every year between February 1 and April 30, post a notice of no coverage in the workplace in English, Spanish and other needed languages (DWC Notice 5), and give written notice of no coverage to each new employee.
Buy a policy from an insurance carrier, or become a certified self-insurer.
Non-subscribers with 5 or more employees must also report work-related injuries, illnesses and deaths with more than one day of lost time. Non-subscribers lose certain legal defenses in injury lawsuits (not verified on the pages opened). Government employers must provide coverage.
Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC)New hire reporting
Report each new hire within 20 days. Report within 20 calendar days of the hire date to the Texas Attorney General. Electronic reporters may instead send two transmissions a month, 12 to 16 days apart.
Agency page
Checked against Texas's agency pages on 2026-10-08 for tax year 2026. Rates change every year; confirm with the agency or your payroll provider before you file. General information, not tax advice.
Kloqk keeps your hours, overtime and breaks straight for whichever payroll company files these for you. Read the guide: State payroll taxes and filings.