StateSide

TX · payroll profile

Texas

Everything an out-of-state employer needs before running a Texas payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
None on wages
Reciprocal agreements
None
SUI wage base 2026
$9,000
Local income taxes
No

Income tax withholding

Imposes wage income tax No
Rate structure n/a
Withholding certificate none
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold From the first dollar
No personal income tax withholding. Employers must register with the Texas Workforce Commission for unemployment tax.
Local income taxes No
No state or local personal income tax. The Texas Constitution was amended in 2019 to prohibit a personal income tax.

Reciprocity

States that exempt Texas residents

A Texas resident working in these states files that state's certificate and is taxed only by Texas.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $9,000
2025 base was $9,000.
New employer rate 2.7%
New employers pay 2.70% or the average rate for their industry, whichever is higher. Rate range includes the replenishment, obligation assessment, deficit and employment/training assessments.
Experience rate range 0.32% – 6.32%
Experience-rating method benefit ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
Texas Comptroller of Public Accounts
UI agency
Texas Workforce Commission (TWC)

Sources

comptroller.texas.gov · twc.texas.gov · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.