State guide
How to Register for Texas Payroll Taxes
Let a dedicated tax manager register you with the Texas Workforce Commission and follow up until your account number arrives, or use the step-by-step guide below.
Last updated:
At a glance
1 agency: TWC
No state income tax withholding
Register within 10 days of liability
2.70% new-employer UI rate
Done for you
Rather hand off the TWC registration?
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Texas that means your TWC unemployment tax account, followed up until the number is issued.
- A real person assigned to your account from start to finish
- We complete the TWC online registration with you
- We follow up with TWC and deliver your account number ready for payroll
- You get back to running the business
Hands-on help from a real person you can call or email. Use it on its own or alongside managed payroll.
Quick answer
Texas payroll tax registration at a glance
Texas has no state income tax, so there is no state withholding account to open. The only state payroll tax registration is with the Texas Workforce Commission (TWC), for state unemployment tax. You register online through Unemployment Tax Registration (UTR), and TWC asks you to do it within 10 days of becoming liable.
Most employers who register online get their TWC tax account number right away. In 2026, a new Texas employer pays unemployment tax at 2.70% on the first $9,000 of each employee's wages.
Who registers
When Texas requires you to register
Texas liability tests come from the Texas Unemployment Compensation Act.
| Employer type | You are liable for Texas unemployment tax when you |
|---|---|
| Most businesses | Pay $1,500 or more in gross wages in a calendar quarter, or employ at least one person for some part of a day in 20 different weeks of the year |
| Household (domestic) employers | Pay $1,000 or more in cash wages for household work in a calendar quarter |
| Agricultural employers | Pay $6,250 or more in cash wages in a calendar quarter, or employ 3 or more workers in 20 different weeks |
| 501(c)(3) nonprofits | Employ 4 or more people in 20 different weeks of the year |
| Others | Are liable for federal unemployment tax (FUTA) and have Texas employees, or acquire all or part of a liable business |
- Corporate officers are employees. TWC applies the rule that a corporate officer is employed by the corporation, so an S corporation that pays its owner a salary is an employer. The same goes for LLC members who receive wages. Profit distributions paid under the company's founding documents are not wages.
- No income tax withholding registration. The Texas Constitution prohibits a tax on the net incomes of individuals. You still withhold federal income tax and FICA as usual.
UTR
How to register with TWC online
Most employers register through Unemployment Tax Registration (UTR).
- Pay your first Texas wages. UTR is built for employers who have already paid wages. You cannot register online before then.
- Open UTR. Start Unemployment Tax Registration. It takes about 20 minutes, and UTR saves your progress so you can resume later.
- Answer the liability questions. UTR asks for first hire and first payroll dates and quarterly wages, then tells you whether you are liable.
- Get your account number. If you are liable, UTR gives you a TWC tax account number at the end of the session. TWC mails an Employer Liability Notice about 2 weeks later.
Who cannot use UTR
- 501(c)(3) nonprofits, government employers and employers liable under more than one section of the law, plus anyone who has not paid wages yet. These employers request a paper Status Report (Form C-1) through TWC's contact form.
Representatives
A payroll provider or accountant can act for you once a corporate officer or owner grants Third Party Authorization (Form C-42) in Unemployment Tax Services (UTS). Form C-43 revokes it.
Fees
TWC describes UTR as a free online service.
The shortcut
Liability tests, a long online form and the wait for TWC
Texas has only one agency, but registration still means a liability test, a detailed online application and follow-up before your first report.
On your own
- Liability and officer questions answered alone
- The TWC online application on your own
- Waiting on and tracking your account number
With your PayAdvisors tax manager
- Your tax manager handles the application with you
- TWC follow-up done for you
- Your number delivered, ready for payroll
Get it done by a dedicated tax manager.
Checklist
What UTR asks for
Gather these before you start.
- Your federal EIN
- A business contact email address
- The date you first hired employees in Texas and the date you first paid wages
- Gross wages paid in each quarter
- Social Security numbers and home addresses of the owners, partners or corporate officers
- A mailing address in the United States
- The trade name and physical address of each Texas location
- A description of the business's principal activities
- If you bought a business: the previous owner's name and TWC account details
What comes back
What you receive from TWC
Texas has one payroll tax account, so expect one result.
- TWC tax account number. Issued at the end of a successful UTR session if you are liable. Use it on every report and payment.
- Employer Liability Notice. Mailed by TWC about 2 weeks after you register online.
- Unemployment Tax Services (UTS) access. TWC's employer portal, where you file wage reports, pay tax and manage representatives.
- No state withholding ID. Texas has no individual income tax, so there is nothing to register with a revenue agency for payroll.
Rates
Texas payroll tax rates for 2026
Texas unemployment tax is paid by the employer, not deducted from wages.
| Item | 2026 figure |
|---|---|
| New-employer rate | 2.70%. It is the higher of 2.7% or the average rate for your NAICS industry; in 2026 every industry group is at 2.70% |
| Taxable wage base | $9,000 per employee per year |
| Rated range, 2026 | 0.32% to 6.32% (average 1.20%) |
| When your rate changes | You keep the new-employer rate until you have 4 chargeable quarters; TWC then moves you to an interim rate, and to an experience rate once you have enough history |
| State income tax withholding | None |
Your effective rate is the sum of five parts: the general tax rate, replenishment tax rate, obligation assessment, deficit tax rate and employment and training investment assessment. TWC typically mails rate notices in December.
Gotchas
Texas registration mistakes we see
Most of these cost money or time only after the first few payrolls.
- Looking for a Texas withholding account. There isn't one. TWC unemployment tax is the only state payroll registration.
- Missing the 10-day window. TWC asks employers to register within 10 days of becoming liable. Once you have paid $1,500 in a quarter or reached 20 weeks with an employee, start UTR.
- Assuming an owner-only S corp is exempt. If the corporation pays you a salary, you are its employee for TWC purposes.
- Skipping no-wage quarters. Quarterly reports are due even for quarters with no wages paid.
- Mailing a paper report. All employers must file and pay electronically unless TWC has granted an electronic hardship waiver.
- Forgetting the workers' comp notice. Texas lets most private employers go without workers' compensation insurance, but non-subscribers must file DWC Form-005 within 30 days of hiring their first employee and every year between February 1 and April 30, and post notice for employees.
Beyond TWC
Other Texas employer requirements
These are separate from the TWC registration but start with your first hire.
- Workers' compensation. Coverage is optional for most private employers. If you opt out, file DWC Form-005 with TDI, post Notice 5 in English, Spanish and any other appropriate language, and tell new hires in writing. See the TDI Division of Workers' Compensation.
- New hire reporting. Report every new and rehired employee to the Texas Attorney General within 20 calendar days from the date the employee starts earning wages. Texas rules set a $25 penalty for each hire not reported.
- Payday rules. Employees exempt from federal overtime must be paid at least monthly; everyone else at least twice a month. Post your paydays. Final pay is due within 6 calendar days after a discharge, or on the next regular payday after a resignation.
- Minimum wage. Texas follows the federal minimum wage, $7.25 an hour.
- Posters. Display the Texas Payday and Unemployment Compensation poster and, since January 8, 2024, the Reporting Workplace Violence notice in English and Spanish. TWC offers them free to download.
After you register
Your Texas filing calendar
Once your account is open, these filings repeat every quarter and year.
- Quarterly wage report and tax payment: due April 30, July 31, October 31 and January 31, in Unemployment Tax Services (UTS) or QuickFile. Include quarters with no wages.
- Electronic payment: ACH debit, TEXNET electronic funds transfer or credit card. Employers paying $250,000 or more in a state fiscal year must pay by electronic funds transfer.
- Rate notices: TWC computes rates as of October 1 for the next calendar year and typically mails notices in December.
- Records: keep employment and payroll records for four years (TWC Rule 815.106).
- DWC Form-005: if you do not carry workers' compensation, refile between February 1 and April 30 each year.
Official links
Official Texas links
Agency sites for forms, filing and help.
Texas registration questions
Does Texas have a state payroll withholding account?
No. Texas has no individual income tax, so you only register with the Texas Workforce Commission for unemployment tax.
How fast do I get a Texas unemployment tax account number?
Most employers who register online through UTR and are liable get the number at the end of the session. TWC mails the Employer Liability Notice about 2 weeks later.
When do I have to register with TWC?
Within 10 days of becoming liable, which for most businesses means paying $1,500 in wages in a quarter or employing someone in 20 different weeks.
Can I register before I run my first payroll?
Not online. UTR is for employers who have already paid wages in Texas.
I am the only employee of my S corporation. Do I register with TWC?
Usually yes, once the corporation pays you wages and meets a liability test. TWC treats corporate officers as employees. A dedicated tax manager can handle the TWC registration for you as part of our S corp payroll package.
What is the 2026 Texas new-employer unemployment rate?
2.70%, on the first $9,000 of each employee's wages.
Can my payroll provider manage my TWC account?
Yes, once a corporate officer or owner grants Third Party Authorization (Form C-42) in Unemployment Tax Services.
Do I need workers' compensation insurance in Texas?
Most private employers can choose not to carry it, but then must file DWC Form-005 with TDI and notify employees.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. This page is a general guide to Texas's registration process, based on TWC and other official sources. For advice on your own situation, talk to your CPA or tax advisor.
Get in touch
Tell us how we can help with your payroll or HR. A member of our team will reach out shortly.
Other ways to reach us
Monday through Friday
Contact our team
See how we use the details you send in our privacy policy.
Next step
Get your Texas account set up
A dedicated tax manager files your TWC registration, follows up until the account number arrives and sends it to you ready for payroll. Tell us your first payroll date and we will take it from there.
About this guide
Last verified and sources
Last verified October 26, 2026 against TWC, TDI, the Texas Attorney General and Texas statutes. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
- California payroll tax registration guide
- Arizona payroll tax registration guide
- Florida payroll tax registration guide
- New York payroll tax registration guide
- Georgia payroll tax registration guide
- North Carolina payroll tax registration guide
- Illinois payroll tax registration guide
- Washington payroll tax registration guide
- Colorado payroll tax registration guide
- Ohio payroll tax registration guide
- Pennsylvania payroll tax registration guide
- New Jersey payroll tax registration guide
- Virginia payroll tax registration guide
- Michigan payroll tax registration guide
- Massachusetts payroll tax registration guide
- Tennessee payroll tax registration guide
- Indiana payroll tax registration guide
- Missouri payroll tax registration guide
- Maryland payroll tax registration guide
- Oregon payroll tax registration guide
- Utah payroll tax registration guide
- Nevada payroll tax registration guide
- Wisconsin payroll tax registration guide
- Alabama payroll tax registration guide
- Minnesota payroll tax registration guide
- South Carolina payroll tax registration guide
- Louisiana payroll tax registration guide
- Kentucky payroll tax registration guide
- Oklahoma payroll tax registration guide
- Connecticut payroll tax registration guide
- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- TWC, Register for an Unemployment Tax Account
- TWC, Unemployment Tax Registration (UTR): before you begin
- TWC, Determine if You Need a Tax Account
- TWC, New Texas Employer Information
- TWC, Tax Rates
- TWC, Reporting and Determining Taxable Wages
- TWC, Responsibilities of a Liable Employer
- TWC, Tax Report and Payment Due Dates
- TWC, Employer's Quarterly Wage Report Filing Options
- TWC, Payment Options
- TWC, Especially for Texas Employers: Alternatives to Hiring Employees
- TWC, Unemployment Tax Forms
- Texas Labor Code, Chapter 201
- Texas Constitution, Article 8, Section 24-a
- Texas Attorney General, New Hire Reporting
- TWC, Posters for the Workplace
- TDI Division of Workers' Compensation, DWC Form-005 (PDF)
- TDI Division of Workers' Compensation
- TWC, Texas Payday Law
- TWC, Texas Minimum Wage Law
- TWC, Unemployment Tax Contact Information
- TWC, New Hire Reporting