Texas Payroll Taxes: 2026 Employer Guide
Quick Facts
Key payroll tax details at a glance.
State Income Tax
No state income tax
SUI New Employer Rate
2.7% or industry average
SUI Wage Base
$9,000 per employee
SUI Rate Range
0.23% to 6.23%
Employee SUI Contribution
No
Local Taxes
No
Overview: Why Texas Payroll Is Simple
Texas is the gold standard for simple payroll. No state income tax, no local payroll taxes, and a low SUI wage base of $9,000 make it one of the easiest states to run payroll. Texas is the most popular state for startup relocations and expansions, particularly from California.
The only state-level payroll obligation is unemployment insurance through the Texas Workforce Commission. The new employer rate is 2.7% or the industry average, whichever is higher. Texas has no state W-2 filing requirement. The state's business-friendly environment and large talent pool make it the top destination for growing companies.
This guide breaks down each of Texas's employer obligations: registration requirements, 2026 tax rates and wage bases, filing deadlines, and the compliance pitfalls that catch expanding startups off guard. Whether you're hiring your first Texas employee or managing a growing remote team, everything you need to stay compliant is here.
Texas State Income Tax
Withholding rates, brackets, and forms.
Texas does not levy a state income tax. Employers do not need to withhold state income tax from employee wages.
Texas Unemployment Insurance (SUI)
Employer rates, wage bases, and contribution details.
New Employer Rate
2.7% or industry average
Wage Base
$9,000 per employee
Rate Range
0.23% to 6.23%
Employee Contribution
—
Texas SUI (State Unemployment Insurance) is an employer-paid tax that funds unemployment benefits for workers who lose their jobs. It is administered by the Texas Workforce Commission (TWC). Registration: Employers must register with the Texas Workforce Commission (TWC) as soon as they hire their first Texas employee. Registration can be completed online.
Texas Compliance Checklist
Deadlines, filing requirements, and official resources.
Key Deadlines
Quarterly returns (Q1)
Due April 30
Quarterly returns (Q2)
Due July 31
Quarterly returns (Q3)
Due October 31
Quarterly Returns (Q4)
Due January 31
W-2 state copies
Due January 31 (federal only)
New hire report
Due Within 20 days of start date
How Warp Handles Texas Payroll
Warp is the only AI-native HR & Payroll platform built for ambitious companies. Instead of clicking through clunky dashboards or Texas's .gov websites for taxes, Warp's AI agents open your Texas tax accounts, file every payroll form, and resolve every tax notice automatically.
What Warp handles for Texas employers:
- Texas tax account registration and setup
- SUI registration and quarterly filings
- Annual W-2 and reconciliation filing
- Tax notice resolution directly with Texas agencies, so you never spend hours on hold
Every Warp customer gets a dedicated Account Manager and Benefits Advisor included to guide them through payroll setup, multi-state expansion, and benefits selection. You'll never visit a government website, negotiate with tax agencies, or pay an accountant $150 per quarterly filing.
If you don't want to deal with navigating Texas .gov portals, check out a demo of Warp to see how we can help you stop worrying about compliance and get back to building.
Tax data last verified: March 16, 2026