Texas · 2026 employer costs
The cost of an employee in Texas
At a $75,000 salary, the fully-burdened employer cost in Texas is $81,079 (+8.1%). That is higher than Florida ($81,045), but lower than California ($81,296), New York ($81,632), and Washington ($81,946).
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How the $6,079 on top of salary breaks down
- Social Security76%
- Medicare18%
- FUTA1%
- State SUI4%
- Workers' comp1%
| Base salary | — | $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 cost | $81,079 |
Estimate for budgeting, not tax advice. SUI uses the new-employer rate; workers' comp is an adjustable office-class 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 $7,000
- Workers' comp (office class, est.)
- ~$0.05–$0.1 / $100
Standard 0.6% net rate (no credit reduction).
Estimate — set by your carrier and experience rating.
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 benefits.
What is the Texas SUI / SUTA rate for 2026?
The 2026 taxable wage base is $9,000. New employers pay 2.70%; experienced employers range 0.32%–6.32% based on their claims history.
Compare with other states
Or read how the burden stack works in our labor burden rate guide, compare 1099 vs W2 employer costs, and see every figure sourced in our methodology.