Texas · 2026 employer costs
The cost of an employee in Texas
At a $75,000 salary, the fully-burdened cost of an employee in Texas is about $81,079, the 7th-lowest of 51 — above Arkansas ($81,054) and Mississippi ($81,051), below Tennessee ($81,081) and Alabama ($81,083).
Texas's 2026 state unemployment (SUI) tax applies to the first $9,000 of each employee's wages, at a 2.70% new-employer rate. Experienced employers pay 0.32%–6.32% based on their layoff history. Texas has no state income tax and adds no employer payroll tax beyond SUI and federal FICA/FUTA.
Texas employer payroll tax calculator
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How the $6,079 on top of salary breaks down
- Social Security76%
- Medicare18%
- FUTA1%
- State SUI4%
- Workers' comp1%
| Base wages | Annual rate basis | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA | 0.60% on first $7,000 | $42 |
| State unemployment (SUI/TX) | 2.70% up to $9,000 | $243 |
| Workers' compensation (est.)est. | ~0.08% (office/clerical est.) | $56 |
| Total annual cost | $81,079 |
$75,000 annualized wages · 2,080 paid hours · Texas · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
Employer-paid costs only — employee withholdings (state income tax, SDI, employee-funded leave) are excluded; these are costs on top of wages, not deductions. Estimate for budgeting, not tax advice. Defaults use the new-employer SUI rate and an office-class workers'-comp estimate. See methodology.
Texas employer payroll taxes (2026)
- State income tax on wages
- No
- State unemployment (SUI) wage base
- $9,000
- SUI new-employer rate
- 2.70%
- SUI rate range (experienced)
- 0.32% – 6.32%
- FUTA (federal unemployment)
- 0.60% on first $7,000Standard 0.6% net rate (no projected credit reduction).
- Workers' comp (office class, est.)
- ~$0.05–$0.1 / $100Estimate — set by your carrier and experience rating.
2026 tax year · each Texas figure carries a primary and an independent source (see sources) · last verified June 2026.
Worked examples
Fully-burdened employer cost in Texas, 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $3,761 | $48,761 | +8.4% |
| $75,000 | $6,079 | $81,079 | +8.1% |
| $120,000 | $9,555 | $129,555 | +8.0% |
Includes Social Security (6.20% to $184,500), Medicare, FUTA, Texas SUI at the new-employer rate (2.70%), and an office workers' comp estimate. Excludes optional benefits.
Texas employer cost FAQ
How much does it cost to employ someone in Texas?
Beyond salary, a Texas employer pays Social Security and Medicare (7.65% combined), FUTA, and Texas state unemployment on the first $9,000 of wages. For a $75,000 salary that totals about $81,079 (+8.1%) before optional benefits.
What is the Texas SUI / SUTA rate for 2026?
The 2026 Texas taxable wage base is $9,000. New employers pay 2.70%; experienced employers range 0.32%–6.32% based on their claims history.
Does Texas have a state income tax employers withhold?
No — Texas has no state income tax on wages, so there is no state income-tax withholding. Employer state costs are limited to SUI plus workers' compensation.
Does Texas have employer withholding tax?
No — Texas has no state income tax, so employers withhold none. The employer's own state cost is SUI at a 2.7% new-employer rate on the first $9,000, and workers' compensation.
What taxes do employers pay for payroll?
Texas employers pay federal Social Security (6.2%) and Medicare (1.45%), FUTA (0.6% on the first $7,000), and Texas state unemployment (SUI) at a 2.7% new-employer rate on the first $9,000. Workers' compensation is on top. Texas has no state income tax.
States with a similar cost of employment
Read how the burden stack works in our labor burden rate guide, compare 1099 vs W-2 employer costs, and see every figure sourced in our methodology.