What is the Average Salary in Texas?

Introduction

Welcome to the Lone Star State, Texas, a land of diverse economic opportunities and dynamic job markets. One question that often arises when considering a move to Texas or a career change within the state is, “What is the average salary in Texas?” Let’s explore this topic in detail.

Average Salary in Texas

The average salary in Texas is a figure that can vary significantly across different professions and cities. However, as of 2022, the median household income in Texas was approximately $64,034. This figure represents a broad spectrum of salaries, from entry-level positions to executive roles.

In the bustling city of Austin, known for its vibrant tech scene, the average salary is slightly higher. Tech professionals, in particular, can expect to earn well above the state average. Similarly, in Houston, home to a thriving energy sector, salaries in oil, gas, and renewable energy often surpass the average.

What are the Highest Paying Jobs in Texas?

In the vast and diverse economic landscape of Texas, certain professions stand out for their high earning potential. Here are some of the top-paying jobs in the Texas:

1. Chief Executive Officers: At the helm of organizations, CEOs in Texas earn an impressive average salary of around $148,216 per year. Their responsibilities include strategic planning and overseeing operational activities.
2. Surgeons: With their critical role in healthcare, surgeons in Texas earn an average salary of $196,679 per year. They perform operations to treat injuries and diseases.
3. Family and General Practitioners: These medical professionals, who diagnose, treat, and help prevent commonly occurring diseases and injuries, earn an average salary of $163,991 per year.
4. Psychiatrists: As medical doctors specializing in mental health, psychiatrists in Texas earn an average salary of $241,729 per year.
5. Hospitalist Physicians: These are physicians whose primary focus is the general medical care of hospitalized patients. In Texas, they earn an average salary of $228,864 per year.
6. Finance Services Directors: Overseeing the financial activities of organizations, Finance Services Directors in Texas earn an average salary of $216,095 per year.
7. Physician-Pediatricians: Specializing in the health of children, Physician-Pediatricians in Texas earn an average salary of $209,000 per year.
8. Assistant Professors of Surgery: These are educators in the field of surgery, earning an average salary of $199,746 per year in Texas.
9. Medical Directors: Responsible for the overall medical direction of a healthcare organization, Medical Directors in Texas earn an average salary of $197,966 per year.
10. MD Physician-Dermatologists: Specializing in skin health, MD Physician-Dermatologists in Texas earn an average salary of $197,488 per year.

Remember, these figures represent average Salary in Texas, and actual salaries can vary based on factors like experience, skills, education, and more. So, it’s always a good idea to do your research and understand the market.

Understanding Taxes in Texas

Federal Taxes

Federal taxes are levied by the U.S. government and apply to everyone in the country, regardless of the state they live in. It is progressive based tax, means that the more you earn the more you’ll pay for Federal Tax. These taxes are used to fund a variety of federal programs and services, including defense, healthcare, and social services.

State Income Tax

Interestingly, Texas is one of the few states in the U.S. that does not impose state income tax for workers and residents. This means that residents of Texas do not pay any income tax to the state government.

Medicare

Medicare is a federal program that provides health insurance to people who are 65 or older and certain younger people with disabilities. It is funded by a combination of a mandatory 2.9% payroll tax split equally between employers and workers, monthly premiums paid by enrollees, and by the government.

Social Security

Social Security is a federal program that serves to old age citizens, handicapped citizens and some others. It is funded through a 12.4% payroll tax split equally between employers and workers.

Texas Salary Calculator

To get a more personalized estimate of your take-home pay in Texas, you can use a Texas Salary Calculator. This tool takes into account your income, federal taxes, and any pre-tax deductions like 401(k) or health savings account contributions to calculate your net income.

Conclusion

While the average salary in Texas is around $64,034, actual incomes can vary widely depending on the industry, profession, and location. Despite these variations, the affordable cost of living and robust economy make Texas an attractive place for job seekers and professionals alike. So whether you’re considering a move to Texas or just curious about salaries in the Lone Star State, it’s clear that the state offers promising opportunities for a prosperous career.

Explore the complete range of Salary Calculators here.