Texas Income Calculator

Guide to Using the Texas Income Calculator

This Texas Income Calculator helps you estimate your federal taxable income, taxes, net income, and monthly income. Follow the steps below to use the calculator effectively.

Step 1: Enter Your Annual Gross Income

Begin by locating the field labeled “Annual Gross Income ($)”. Enter your total annual income before any deductions. This value must be a non-negative number, and you can adjust your entry in increments of 100 if needed.

Step 2: Select Your Filing Status

Next, choose your filing status from the provided options. Click on the dropdown menu labeled “Filing Status”. You can select from either Single, Married Filing Jointly, or Head of Household. This selection is required, as it affects the calculation of your federal income tax.

Step 3: Specify the Number of Dependents

Enter the number of dependents you are claiming in the field labeled “Number of Dependents”. This number should be between 0 and 20, and each dependent impacts your federal taxable income. It is a required field.

Step 4: Input 401(k) Contributions

If applicable, enter your annual 401(k) Contributions ($) in the corresponding field. While this field is optional, contributions up to a maximum of $22,500 can be recorded. These contributions can reduce your taxable income.

Step 5: Enter Health Insurance Premiums

Optionally, you can add your annual health insurance premiums in the field labeled “Health Insurance Premiums ($)”. This amount can also decrease your taxable income, and should be adjusted in increments of 100.

Step 6: Calculate and Review Results

• Federal Taxable Income: This field displays the taxable income after accounting for dependents, 401(k) contributions, and health insurance.
• Federal Income Tax: Based on your federal taxable income and filing status, this field shows the estimated federal income tax.
• Social Security Tax: Displays the calculated Social Security tax, capped at $9114.
• Medicare Tax: Shows the calculated Medicare tax which is 1.45% of your annual income.
• Total Tax: The sum of federal income tax, Social Security tax, and Medicare tax.
• Net Income: Total annual income minus total tax and any contributions or premiums specified.
• Monthly Net Income: Breaks down your net income into a monthly figure.
• Effective Tax Rate: The percentage of your annual income that goes towards paying taxes.

Once you have entered all the required and optional fields, the calculator will automatically display all results. Use these insights to make informed decisions regarding your income and taxes.