How Much Are Federal Taxes in Texas? Brackets, FICA, and Credits

Federal taxes in Texas work exactly the way they do in every other state, because Texas has no state personal income tax and the federal system does not vary by geography. If you live or work in Texas, you owe federal income tax at rates from 10% to 37%, plus 7.65% in FICA payroll taxes on wages, and — if you’re self-employed — a combined 15.3% Social Security and Medicare tax on net earnings.¹²

2026 Federal Income Tax Brackets

Federal income tax is progressive. Higher rates apply only to the portion of income that falls inside each bracket, not to every dollar you earn.³ For tax year 2026, single filers face these seven brackets:⁴

10% on taxable income up to $12,400
12% from $12,401 to $50,400
22% from $50,401 to $105,700
24% from $105,701 to $201,775
32% from $201,776 to $256,225
35% from $256,226 to $640,600
37% on income above $640,600

Married couples filing jointly get roughly double the bracket widths. The 10% bracket runs up to $24,800, 12% up to $100,800, 22% up to $211,400, 24% up to $403,550, 32% up to $512,450, 35% up to $768,700, and 37% on income above $768,700.⁴

A quick example makes the difference between marginal and effective rates clear. A single filer with $60,000 in taxable income pays 10% on the first $12,400, 12% on the next $38,000, and 22% on only the remaining $9,600. The total bill comes out to about 13% of the $60,000, well below the 22% marginal bracket the filer sits in.

Standard Deduction

Before those rates ever touch your income, you subtract either the standard deduction or your itemized deductions from gross income. Most filers take the standard deduction. For 2026:⁴

Single or married filing separately: $16,100
Married filing jointly: $32,200
Head of household: $24,150

Filing status matters in two ways at once. It sets your standard deduction, and it sets your bracket thresholds. A single Texan hits the 22% bracket at $50,401 in taxable income; a married couple filing jointly does not hit it until $100,801.

FICA: Social Security and Medicare

Federal payroll taxes come out of every paycheck under the Federal Insurance Contributions Act. Your employer withholds the employee share and pays a matching share on your behalf.²

Social Security: 6.2% on wages up to $184,500 in 2026 (employer matches, for a combined 12.4%).⁵
Medicare: 1.45% on all wages with no cap (employer matches, for a combined 2.9%).²

The employee share of FICA totals 7.65% on wages up to $184,500. Everything you earn above the cap is still subject to the 1.45% Medicare portion, just not to Social Security.

Additional Medicare Tax

Higher earners pay an extra 0.9% Medicare surcharge on wages above $200,000 for single filers or $250,000 for married couples filing jointly.⁶ Your employer does not match this one; only the employee pays. Employers start withholding it once your wages pass $200,000 in a calendar year regardless of filing status, and any mismatch with your actual threshold is settled on your return.

Self-Employment Tax

Independent contractors, freelancers, and small business owners pay both the employee and employer sides of Social Security and Medicare. That comes to 15.3% on net earnings: 12.4% for Social Security up to the $184,500 wage base, and 2.9% for Medicare.⁷ The tax kicks in once your net self-employment income for the year reaches $400.⁸

To take some of the sting out, the IRS lets you deduct the employer-equivalent half of your self-employment tax when calculating adjusted gross income.⁷ The 0.9% Additional Medicare Tax also applies to self-employment income above the same $200,000 / $250,000 thresholds.⁶ Self-employed people who buy their own health insurance can deduct 100% of premiums for themselves, a spouse, dependents, and children under 27, provided the plan is established through the business and they are not eligible for employer coverage.⁹

Capital Gains and Investment Income

Profits on investments held longer than a year get their own rate schedule instead of ordinary income rates. For 2026, single filers see:¹⁰

0% on taxable income up to $49,450 ($98,900 married filing jointly)
15% from $49,451 to $545,500 ($98,901 to $613,700 joint)
20% above $545,500 ($613,700 joint)

Assets held a year or less are short-term gains, taxed at your regular income tax rates. Head-of-household filers have their own thresholds: 0% up to $66,200 and 15% up to $579,600.¹⁰

Net Investment Income Tax

A separate 3.8% surtax hits net investment income — interest, dividends, capital gains, rental income — when modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly).¹¹ It’s calculated on the smaller of your net investment income or the amount by which your modified AGI exceeds the threshold. These thresholds don’t adjust for inflation and have stayed put since 2013.

Credits That Reduce What You Owe

Credits are more powerful than deductions because they cut your tax bill dollar for dollar. Two show up on most Texas returns that qualify.

Child Tax Credit

The Child Tax Credit is worth up to $2,200 per qualifying child under 17 for 2026. Up to $1,700 per child is refundable through the Additional Child Tax Credit, meaning you can get it back even if you owe no tax. The full amount is available to single filers earning up to $200,000 and joint filers earning up to $400,000; above those thresholds, the credit phases out by $50 for every $1,000 of additional income.¹²

Earned Income Tax Credit

The EITC is fully refundable and aimed at lower- and moderate-income workers. Maximum amounts for tax year 2026:¹⁰

No qualifying children: $664
One qualifying child: $4,427
Two qualifying children: $7,316
Three or more qualifying children: $8,231

Income limits control eligibility. A single filer with one child loses the credit at $51,593; a married couple filing jointly with one child can earn up to $58,863. Investment income above $12,200 for 2026 disqualifies you.¹⁰

Filing, Deadlines, and Paying

You report federal income on Form 1040, subtract the standard deduction or itemized deductions from gross income, then apply the bracket rates to what’s left. Federal returns are due April 15 each year. You can request an automatic six-month extension to October 15 by filing Form 4868 or by making an electronic payment marked as an extension.¹³ An extension buys time for paperwork, not for payment. Anything you owe is still due April 15, and interest and penalties start accruing on any unpaid balance after that date.

Direct Pay lets you send money from a checking or savings account for free.¹⁴ The Electronic Federal Tax Payment System is another free option and is particularly useful for self-employed filers making quarterly estimated payments.¹⁵

Estimated Payments if You’re Self-Employed

If your income isn’t subject to employer withholding — freelance work, rental income, investment profits — the IRS expects quarterly estimated payments on April 15, June 15, September 15, and January 15 of the following year.¹⁶ You can avoid an underpayment penalty if you owe less than $1,000 at filing, or if you paid at least 90% of the current year’s tax or 100% of the prior year’s tax (whichever is smaller). The 100% figure rises to 110% if your prior-year AGI was over $150,000 ($75,000 married filing separately).¹⁷

Late Filing vs. Late Payment Penalties

These are two separate penalties and they are not equal. Failure to file costs 5% of the unpaid tax per month (or partial month), capped at 25%.¹⁸ Failure to pay costs 0.5% per month, also capped at 25%.¹⁹

When both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay amount, so the combined charge stays at 5% per month rather than climbing to 5.5%.¹⁹ If you file on time and set up an approved installment agreement, failure-to-pay drops to 0.25% per month. The practical lesson: if you can’t cover the full amount, file the return anyway. The bigger penalty is for not filing.

1
State of Texas. Texas Constitution Article 8 – Taxation and Revenue
2
Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
3
Office of the Law Revision Counsel. 26 US Code 1 – Tax Imposed
4
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
5
Social Security Administration. Contribution and Benefit Base
6
Internal Revenue Service. Topic No. 560, Additional Medicare Tax
7
Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
8
Internal Revenue Service. Topic No. 554, Self-Employment Tax
9
Internal Revenue Service. Instructions for Form 7206
10
IRS. Rev. Proc. 2025-32
11
Internal Revenue Service. Net Investment Income Tax
12
Internal Revenue Service. Child Tax Credit
13
Internal Revenue Service. Get an Extension to File Your Tax Return
14
Internal Revenue Service. Direct Pay with Bank Account
15
Internal Revenue Service. EFTPS: The Electronic Federal Tax Payment System
16
Internal Revenue Service. Estimated Tax
17
Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty
18
Internal Revenue Service. Topic No. 653, IRS Notices and Bills, Penalties and Interest Charges
19
Internal Revenue Service. Failure to Pay Penalty