Last reviewed: October 20, 2026

Payroll requirements in Texas

Texas does not have a personal income tax. Employers still withhold federal income tax, Social Security, and Medicare, and they pay state unemployment tax to the Texas Workforce Commission.

Withholding and unemployment insurance

There is no Texas income-tax withholding. The Comptroller of Public Accounts is the reference for what Texas does not tax: Texas taxes. Federal withholding still follows IRS Publication 15 (2026).

State unemployment tax is paid to the Texas Workforce Commission. Your rate is assigned. Source: TWC unemployment tax.

Minimum wage, overtime, and the final paycheck

The US DOL table effective July 1, 2026 lists Texas at the federal minimum wage of $7.25. Source: DOL consolidated minimum wage table.

Texas does not add a general daily overtime rule on top of the FLSA. Covered employees are generally due time and a half after 40 hours in a workweek. Source: DOL overtime.

The Texas Payday Law, enforced by TWC, requires wages to be paid on regular paydays. Final wages are tied to that payday schedule rather than to California’s immediate-payment rule. Source: Texas Payday Law.

Pay frequency and new-hire reporting

Set the payday in line with the Texas Payday Law page above. Do not copy another state’s twice-a-month rule unless TWC says it applies to that job.

The Texas Attorney General’s employer portal states that employers report new hires and rehires within 20 calendar days from the date the employee starts earning wages. Source: Texas new-hire FAQ.

This is general information for employers, not tax, legal, or payroll-filing advice. Rates and deadlines change. Confirm them with the cited agency before you pay people or file a return. HR360 TechX records payroll runs, payslips, time, and leave. It does not file Form 941, Form 940, W-2s, or 1099s.