Calculate your paid time off rights under Texas law with our free Texas PTO calculator. This essential tool helps employees and employers estimate PTO accrual, payout values, and tax withholding for unused vacation time according to 2025 Texas labor laws.
This Texas PTO calculator tool uses current 2025 Texas labor laws and tax rates to provide accurate estimates for:
PTO accrual rates based on hours worked
Vacation payout values upon termination
Texas tax withholding on PTO payments
Sick pay calculations (if company offers it)
PTO cap compliance with company policies
Texas PTO Formula (2025):
PTO Accrual = Hours Worked × Accrual Rate
PTO Payout Value = PTO Balance × Hourly Rate
TX Tax Withholding = 0% State + 7.65% FICA (typical)
Sick Pay = Varies by company policy (not state-mandated)
Texas PTO Laws in 2025
Our Texas vacation payout calculator incorporates these key legal requirements:
Vacation Time
Law Texas doesn't require PTO payout unless company policy states so
Law "Use-it-or-lose-it" policies are allowed if disclosed in advance
Law Employers can set any accrual rate or cap
Sick Pay
Note Texas has no state-mandated sick leave law
Note Sick pay policies vary entirely by company
Common PTO Accrual Rates in Texas
The PTO accrual calculator Texas handles these typical scenarios:
Standard Accrual Rates
Entry-level: 0.0385/hour (1.5 weeks/year)
Professional: 0.0577/hour (2 weeks/year)
Managerial: 0.0769/hour (3 weeks/year)
Executive: 0.0962/hour (4 weeks/year)
Accrual Caps
Common caps range from 120-240 hours in Texas companies
Texas allows "use-it-or-lose-it" if policy is clear
Calculating PTO Payouts in Texas
Our PTO payout calculator Texas explains these key factors:
Taxation: PTO payouts are taxed as regular income
Payout Requirement: Only if company policy promises it
Rate: Based on current pay rate
2025 Texas Tax Withholding on PTO
The Texas PTO payout calculator accounts for these 2025 tax rates:
State Income Tax: 0% (Texas has no state income tax)
Social Security: 6.2% on first $168,600
Medicare: 1.45% (2.35% over $200,000)
Federal Supplemental: 22% optional for large payouts
Pro Tip: In Texas, always check your company's written PTO policy. Unlike California, Texas employers aren't required to pay out unused PTO unless they've promised to in writing.
Frequently Asked Questions
Is unused PTO paid out in Texas when you quit?
Only if your company policy states it will pay out unused PTO. Our Texas PTO calculator helps estimate what you might receive if payout is promised.
How is PTO taxed in Texas?
PTO payouts are taxed as regular income. Our calculator shows typical withholding of 7.65% for FICA taxes, with optional 22% federal supplemental withholding for large payouts.
Does Texas require employers to offer sick pay?
No, Texas has no sick leave mandate. The calculator's sick pay feature is for companies that voluntarily offer it.
Can my employer take away accrued PTO in Texas?
Yes, if their policy includes a "use-it-or-lose-it" provision that was properly disclosed to you.
Texas PTO Resources
For official information, consult these resources: