Texas Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against Texas Workforce Commission's own pages and the other official sources below
Texas employers pay state unemployment tax (SUTA) on the first $9,000 of each employee's wages in 2026, and new employers pay 2.7% — at most $243.00 per employee for the year. Every Texas employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in Texas?
Enter your headcount and average pay to see the employer's share of Texas and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
Texas employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
Texas unemployment (SUTA) 2.7% × first $9,000 per employee | $1,215 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
| Total employer taxes | $20,550 |
| Per employee | $4,110 |
Assumes every employee earns the average and works in Texas all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
Texas unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $9,000 per employee (42nd highest of 51)
- New-employer rate
- 2.7%
- How the new-employer rate works
- Entry-level rate 2.70% for all industries in 2026, inclusive of all tax components.
- Most a new employer pays per employee
- $243.00 (2.7% × $9,000)
- Experience-rated range (2026, as published)
- 0.32% to 6.32%
- 2025 average employer rate
- 1.54% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
Same $9,000 wage base as District of Columbia, Michigan, Missouri, Nebraska and Ohio. Register with Texas Workforce Commission when you first pay wages in Texas; you get an account number for quarterly wage reports and tax payments.
Federal payroll taxes every Texas employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Texas unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
Workers' comp: Texas is the only state where most private employers may choose not to carry workers' comp ("non-subscribers"), but they must notify employees and the state and lose key legal defenses.
Next for Texas employers: Texas paycheck calculator (employee withholding) · Texas new hire reporting · Texas payday & final paycheck rules · Texas workers' comp · full payroll cost calculator
Texas payroll tax FAQ
What is the Texas SUTA rate for new employers in 2026?
2.7%. Entry-level rate 2.70% for all industries in 2026, inclusive of all tax components.
What is the Texas SUTA wage base for 2026?
$9,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Texas unemployment tax on them for the rest of the year. That is the 42nd highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in Texas?
No. In Texas unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.
What other payroll taxes do Texas employers pay?
For 2026, Texas has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.
How much FUTA do Texas employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Texas unemployment tax on time. Texas is not a credit-reduction state for 2026.
How does my Texas SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Texas Workforce Commission assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.32% to 6.32%. Use the rate on your annual rate notice. The 2025 average employer rate in Texas was 1.54% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12Related Resources on This Site
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Payroll taxes in other states
All states in one table, plus federal deposit rules and deadlines →
General information, not tax advice. Rates change every year; confirm yours on the notice from Texas Workforce Commission before filing.