The Texas bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses.
Behind the numbers
Behind the numbers
Updated: July 12, 2025
Does Texas tax bonuses?
No. Texas has no personal income tax.
How to calculate bonus tax in Texas
Only federal tax applies. If the bonus is paid separately from regular wages, use the federal flat rate of 22% for withholding. You can use the calculator at the top of this page to run the numbers.
What is the bonus tax rate in Texas?
22% federal only. There’s no state or local income tax.
How can employers in Texas pay bonuses to employees?
Bonuses can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in Texas?
Bonuses are treated like other wages for federal tax purposes. No state tax applies.
Why are bonuses taxed differently than standard pay?
They aren’t — at least not at the state level. Texas doesn’t tax wages, so no state withholding applies.
How much tax is taken out of a bonus in Texas?
Just federal withholding. For example, if you give an employee a $3,000 bonus, $660 (22%) would be withheld for federal taxes — but nothing for Texas, since there’s no state income tax.