Income tax, federal tax, state tax...help?
Okay, there has been a lot of people telling me different answers and I don't know who to believe. A few has said Texas has no income tax, some said there is no state taxes? I'm confused...in TEXAS what taxes do I have to pay or are taken out of my paycheck. Thanks.
Public Comments
- Texas has no state income tax. As far as returns that you must file, just a U.S. 1040 return for federal income tax. You are also paying social security tax, medicare tax and unemployment tax, taken out of your paychecks, no return needs to be filed.
- There is no state income tax for the State of Texas. Therefore, you should not have any state taxes taken out of your check. Referring to Irongram's answer - you will not be paying any unemployment tax, your employer pays that.
- Texas has a sales tax. This is added to the purchase price when you buy things. It is not taken from your paycheck. There is no STATE INCOME tax in Texas. There are FEDERAL income taxes in Texas (as in every other state) and a state SALES tax in Texas (see previous paragraph), as in most other states. The same federal taxes are (or should be) taken from your paycheck in every state. These include: 1. Federal income tax. Amount depending on your W-4. 2. Social security/OASDI. Usually 6.2%. 3. Medicare. 1.45%. In some states, there is a small amount withheld for a state disability insurance fund. I am not sure if Texas is one of those states. On Monday, call the Texas Workforce Commission to ask. Actually, call on Tuesday. They are probably busier on Mondays and Fridays than other days.
