Employee Cost in Texas
Updated June 2026 · Total employer cost calculator
Calculate Total Employee Cost in Texas
Total Employee Cost in Texas by Salary
| Annual Salary | Payroll Taxes | +Std Benefits | Total Cost |
|---|---|---|---|
| $34,300 | $3,756 | $6,174 | $44,230 |
| $53,900 | $5,902 | $9,702 | $69,504 |
| $73,500 | $8,048 | $13,230 | $94,778 |
| $93,100 | $10,194 | $16,758 | $120,052 |
| $122,500 | $13,414 | $22,050 | $157,964 |
Total Hiring Cost by Job Type — Texas
Workers' compensation insurance rates vary dramatically by job classification, significantly affecting total employer cost. Rates based on $83,300 median salary in Texas.
| Job Type | WC Rate | WC Cost | Total/yr |
|---|---|---|---|
| Office / Administrative | ~$0.40/$100 | $333 | $107,748 |
| Retail / Customer Service | ~$1.20/$100 | $1,000 | $108,415 |
| Restaurant / Food Service | ~$3.00/$100 | $2,499 | $109,914 |
| Trades / Light Warehouse | ~$6.00/$100 | $4,998 | $112,413 |
| Construction / Heavy Labor | ~$14.00/$100 | $11,662 | $119,077 |
WC rates are approximate — actual workers' comp premiums vary by carrier, claims history, and exact classification code. Construction and trades roles can run 3–5× the total cost of equivalent-salary office roles due to WC premiums.
Hiring Costs in Texas
Texas has no state income tax, which helps attract workers at lower gross salaries. The minimum wage is $7.25/hr (federal minimum). Total employer costs are below the national average, making Texas a cost-competitive state for hiring.
Employer Tax Summary for Texas
- • FICA (employer share): 7.65% of gross wages
- • FUTA: 0.6% on first $7,000 of wages
- • Texas SUTA: ~2.7% average (varies by experience rating)
- • Minimum wage: $7.25/hr
- • Workers' comp: $0.30–$3.00+/$100 payroll (by classification)
Cost-Saving Strategies
- • Consider PEO (Professional Employer Organization) for small businesses — often reduces benefits costs 15–25%
- • Use contractors for variable workloads (ensure proper classification)
- • High-deductible health plans + HSA contributions lower health insurance costs
- • Benchmark salaries with local market data to avoid overpaying
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