Cost to hire an employee in Texas
On top of a $50,000 salary, a Texas employer pays roughly $4,500 in payroll taxes and insurance before benefits, about 9% of wages.
Last verified November 2, 2026. Sources: twc.texas.gov, oregon.gov.
What a Texas employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Texas unemployment (SUTA) | 2.7% new employer 0.32%–6.32% experienced | First $9,000 |
| Workers' compensation | ~$0.78 per $100 | Varies by job class |
Replenishment tax 0.21% (reduced 0.10% to offset ETIA), Obligation Assessment 0.01%, and Employment and Training Investment Assessment (ETIA) 0.10%, all included in the effective rates
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,236 | 9.2% | $38,236 |
| $50,000 | $4,500 | 9% | $54,500 |
| $75,000 | $6,608 | 8.8% | $81,608 |
| $100,000 | $8,715 | 8.7% | $108,715 |
| $150,000 | $12,930 | 8.6% | $162,930 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Texas vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Texas | $9,000 | 2.7% | $4,500 |
| Arkansas | $7,000 | 2% | $4,272 |
| Louisiana | $7,000 | 1% | $4,642 |
| New Mexico | $34,800 | 1% | $4,740 |
| Oklahoma | $25,000 | 1.5% | $4,907 |
Frequently asked questions
- How much does it cost to hire an employee in Texas?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,500 (9%), before benefits, for a total of $54,500.
- What is the Texas SUTA rate for new employers?
- New employers generally pay 2.7% on the first $9,000 of each employee's wages. Experienced employers pay between 0.32% and 6.32%.
- Do Texas employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.