Texas Payroll Taxes: Does Texas Have a State Income Tax?

No. Texas imposes no state income tax and no local taxes. The only Texas payroll tax obligation for employers is state unemployment tax, reported and paid quarterly to the Texas Workforce Commission.

What are my Texas state payroll tax obligations?

Employers in Texas are required to contribute to unemployment taxes. No state income or local taxes are imposed in Texas. Texas tax rates are published by the Texas Workforce Commission.

Texas does not have any reciprocal agreements with other states.

Local taxes

There are no local taxes in the state of Texas.

How do I register as an employer?

Texas employers can register for unemployment taxes electronically through the Texas Workforce Commission's online registration site. The Texas Workforce Commission also publishes a Registration FAQs listing that answers common questions about registering.

What are the payroll tax filing requirements?

These are the forms and payments Texas employers file for unemployment insurance. Both are filed, and payment remitted, at the same time.

File electronically using the Texas Workforce Commission online portal.

Where can I find more info?

 
• The Texas Workforce Commission has more information on unemployment insurance contributions.
 
• The Responsibilities of a Liable Employer listing can be used as guidelines for the Texas unemployment tax.

Frequently asked questions

Does Texas have a state income tax?

No. No state income or local taxes are imposed in Texas. Employers in Texas are, however, required to contribute to unemployment taxes.

Are there local payroll taxes in Texas?

No. There are no local taxes in the state of Texas. Texas also does not have any reciprocal agreements with other states.

How do I register as an employer in Texas?

Texas employers can register for unemployment taxes electronically through the Texas Workforce Commission's online registration site. The Texas Workforce Commission also publishes Registration FAQs if you have questions about registering.

Which payroll forms do Texas employers file, and when are they due?

Texas employers file Form C-3, Employer's Quarterly Report, together with Form C-3V, Payment Voucher, remitting payment at the same time. Both are due quarterly by the end of the month following the close of a calendar quarter — April 30, July 31, October 31 and January 31 — and can be filed electronically using the Texas Workforce Commission online portal.