Texas Employee Cost Calculator (2026)
Last updated: October 2026
Texas employers pay federal payroll taxes plus Texas unemployment insurance — 2.7% for new employers on the first $9,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$65,025.00
1.08× salary · $5,025.00 on top of wages
Monthly cost
$5,418.75
Loaded hourly cost
$31.26
Per hour actually worked
$32.51
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $243.00 |
| Workers' comp | $150.00 |
| Total annual cost | $65,025.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
Texas employer payroll taxes at a glance
| New employer SUTA rate | 2.7%The greater of the NAICS industry average or 2.7% — all 2026 industry groups compute to 2.7%. |
| Experienced employer SUTA range | 0.32% – 6.32% |
| SUTA taxable wage base | $9,000.00Fixed by statute. |
| Max SUTA per employee per year | $243.00 |
| Paid family/medical leave program | No |
| State income tax on wages | No |
| Source | Texas unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in Texas
Salary
$40,000.00
Total annual cost
$50,645.00
1.27× salary · SUTA $243.00
Salary
$60,000.00
Total annual cost
$72,825.00
1.21× salary · SUTA $243.00
Salary
$90,000.00
Total annual cost
$106,095.00
1.18× salary · SUTA $243.00
What's different about hiring in Texas
- Texas's SUTA wage base is low ($9,000.00), so unemployment tax is mostly paid in the first months of the year.
- Texas has no state income tax on wages, which simplifies payroll withholding (though it doesn't reduce your employer cost).
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
| State | New employer rate | Wage base | Max SUTA per employee |
|---|---|---|---|
| Texas | 2.7% | $9,000.00 | $243.00 |
| New Mexico | 1% | $34,800.00 | $348.00 |
| Oklahoma | 1.5% | $25,000.00 | $375.00 |
| Arkansas | 2% | $7,000.00 | $140.00 |
| Louisiana | Varies | $7,000.00 | Varies |
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- Texas unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
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- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
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- Maine
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- Ohio
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- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Tax rates are approximate — always verify with your state's revenue department.