Texas Employee Cost Calculator
The annual, monthly, and hourly cost of a hire in Texas, with local state unemployment pre-filled.
Pre-filled with Texas estimates: SUI 2.7% on a $9,000 wage base, no state income tax. Edit any field below.
2,080 = 40 hours × 52 weeks
Sets the SUI rate and wage base below. Both stay editable.
New-employer estimate; use your assigned rate
SUI applies only up to this amount
Health, retirement match, etc.
Vacation, sick, and holidays
Equipment, software, admin
$109,016
Annual employer cost
$9,085
Per month
$52.41
Per hour (2,080 hrs)
28.3%
Burden on salary
Cost breakdown
At $109,016 a year, a wrong hire is expensive. Skillora's AI screens and scores every resume against the role before you spend it.
Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality. Verify with a licensed accountant before relying on these figures.
A Texas hire costs $109,016. Screen first.
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An $85,000 hire in Texas costs the employer about $109,016 a year at the defaults on this page, or $9,085 a month and $52.41 an hour on 2,080 hours. The $24,016 above salary is the burden: employer FICA, federal and state unemployment, workers comp, benefits, paid time off, and overhead. The calculator pre-fills Texas's SUI estimate; every other field is editable.
Texas charges state unemployment insurance on the first $9,000 of each employee's wages, at an estimated 2.7% for a new employer. On an $85,000 salary that is $243 for the year, $65 below the $308 median across the 51 jurisdictions on this site. The wage base is met in week 6 of a full-time year, so SUI stops accruing after that and the annual figure is the cap. Experience-rated employers pay more or less than the new-employer rate, so replace it with the rate on your annual notice.
Texas has no state income tax on wages. That changes nothing in the employer's cost above, but an $85,000 salary goes further for the employee than the same salary in a taxing state, which can make a Texas offer competitive at a lower number.
The largest line in the Texas total is employer FICA at $6,503, which is federal and identical in every state. Benefits at 8.0% add $6,800, and 15 days of PTO cost $4,904 in salary paid for hours not worked. Workers comp at 1.5% adds $1,275; the real rate depends on the class code and on Texas's rate filings, so replace the default with the rate on your policy.
For a staffing agency placing a W2 employee in Texas at this salary, $109,016 is the floor a bill rate has to clear: $52.41 an hour before any gross margin. In Texas, SUI is a small share of that floor, so the bill rate math is driven by FICA, benefits, and the workers comp class, not the state.
| Line ($85,000 in Texas) | % of salary | Annual |
|---|---|---|
| Employer FICA (Social Security + Medicare) | 7.7% | $6,503 |
| Federal Unemployment (FUTA) | 0.1% | $42 |
| State Unemployment (SUI) | 0.3% | $243 |
| Workers' Compensation | 1.5% | $1,275 |
| Benefits (health, retirement) | 8.0% | $6,800 |
| Paid time off | 5.8% | $4,904 |
| Overhead (equipment, admin) | 5.0% | $4,250 |
| Total burden | 28.3% | $24,016 |
Employee cost in states bordering Texas
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