Texas variant. This is a Texas-specific version of the Workers Comp Cost Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Workers Comp Cost Estimator.
Workers' compensation premiums in Texas are priced per $100 of payroll, by job classification. On a $75,780 salary at an illustrative $1.00 rate, the annual premium is about $758.
How Texas workers' comp is priced
Premium = (payroll ÷ 100) × class rate × experience modifier. Clerical roles carry low rates; construction and trucking carry much higher ones.
Texas sets its own rules and rates. The calculator above lets you enter your real payroll, class rate, and mod factor for an accurate Texas estimate.
About taxes and housing in Texas
Texas has a constitutional ban on a state personal income tax, relying instead on sales and property taxes.
Texas offsets the lack of an income tax with relatively high property taxes near 1.68%, while median home values are around $305,000.
Texas has one of the largest state economies in the nation, led by energy, technology, manufacturing, and trade.
Worked example: $75,780 payroll
($75,780 ÷ 100) × $1.00 = $758/year at a sample clerical rate. A construction class rate of $8.00 would make it $6,062.
Quick reference
- State income tax: No state income tax (constitutional ban)
- State sales tax: 6.25% (plus 1.95% avg local)
- Median home value: $305,000
- Median household income: $75,780
- Effective property tax rate: 1.68%
- Avg auto insurance: $2,018/yr
Frequently Asked Questions
How is workers' comp calculated in Texas?
By payroll ÷ 100 × class rate × experience modifier, using Texas's approved rates.
Is workers' comp required in Texas?
Most Texas employers must carry coverage once they have employees; rules vary by industry and headcount.