Texas Unemployment Benefits in 2026: Up to $605/Week for 26 Weeks, No State Income Tax, Partial UI Rules, and What Else Is Available

Texas’ unemployment insurance program — managed by the Texas Workforce Commission (TWC) — increased its maximum weekly benefit to $605 in 2026, up from $563 in 2025. Texas sets its maximum at the greater of $590 or 47% of the statewide average weekly wage, adjusted each October. Texas has no state income tax, so UI benefits are only subject to federal taxes. One important caveat: Texas has not expanded Medicaid, so unemployed Texans without dependents have limited state health coverage options. See how Texas compares at SavingToInvest’s unemployment benefits by state guide.

2026 Benefit Amounts and Duration

Texas’ maximum weekly benefit is $605 for 2026. The minimum is $72. Benefits last up to 26 weeks, but your actual number of benefit weeks depends on your total base period wages and the state’s unemployment rate at the time you file.

Your Weekly Benefit Amount is calculated based on your wages in the highest two quarters of your base period, divided by 25. If your two highest quarters totaled $30,000, your WBA would be $30,000 ÷ 25 = $1,200 — but the $605 cap applies, so you’d receive $605/week.

Things can change — I’ll update this page when any adjustments are announced. Subscribe here to get notified.

Who Qualifies

To receive Texas UI benefits, you must:

• Have earned wages in covered employment during the base period
• Have wages in at least two of the four base period quarters
• Have earned at least $2,500 in total during the base period (or meet an alternate minimum earnings test)
• Have lost your job through no fault of your own (layoff, reduction in force, business closure)
• Be physically able and available for full-time work
• Actively seek work each week — Texas requires at least three job search activities per week

Register with WorkInTexas.com and certify biweekly through the TWC Tele-Serv line (800-558-8321) or online at twc.texas.gov.

Workers fired for misconduct or who quit without good cause are generally ineligible. Texas recognizes good cause for medical reasons, domestic violence, and following a spouse to a new location.

Partial Unemployment for Part-Time Workers and Reduced Hours

Texas has the most generous partial UI formula in the country: you can earn up to 125% of your WBA per week before your benefit is reduced to zero. The formula: subtract 25% of your WBA from your gross weekly earnings, then deduct the remainder from your full WBA.

For example, if your WBA is $500 (25% = $125) and you earn $400:

• Amount over threshold: $400 − $125 = $275
• Adjusted WBA: $500 − $275 = $225

You still receive a partial benefit. But if you earned $650 (more than 125% of $500 = $625), your benefit would be $500 − ($650 − $125) = -$25, meaning no benefit for that week. Report all gross earnings accurately when certifying biweekly through TWC.

Tax Implications of Texas Unemployment Benefits

Texas has no state income tax — UI benefits are not subject to state income tax. This is one of Texas’ major financial advantages for unemployed workers.

At the federal level, UI is taxable as ordinary income. You’ll receive Form 1099-G from TWC by January 31. You can elect federal withholding from your weekly payments when certifying. Since there’s no state withholding, just elect your preferred federal withholding rate.

How to File

File your claim at twc.texas.gov or call 800-939-6631. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit or a TWC debit card.

There is a one-week waiting period before benefits start. After approval, certify biweekly through Tele-Serv (800-558-8321) or online — report all earnings and three weekly work-search activities for each week.

If your claim is denied, you have 14 days from the mailing date to file an appeal.

Other Benefits Available to Unemployed Texas Workers

Medicaid: Texas has NOT expanded Medicaid. Only very low-income parents, pregnant women, and certain individuals with disabilities typically qualify. Most unemployed Texas adults without dependent children do not qualify for Medicaid. If you have children, apply at HHS.texas.gov or your local Health and Human Services office.

CHIP: Texas’ Children’s Health Insurance Program provides coverage for children in households up to 200% of the federal poverty level. Apply at HHS.texas.gov.

SNAP (Food Assistance): Texas SNAP provides monthly food benefits via Lone Star Card. Apply at HHS.texas.gov, YourTexasBenefits.com, or your local HHSC office. Net income limits are at 100% of the federal poverty level.

LIHEAP / CEAP (Energy Assistance): Texas’ Comprehensive Energy Assistance Program (CEAP) helps with home energy bills. Contact your local community action agency or apply through TDHCA at tdhca.state.tx.us for the nearest LIHEAP provider.

Workforce Solutions Centers: Texas’ Workforce Solutions office network (operated through local workforce boards) provides free job placement, skills training, resume help, and access to WIOA-funded programs. Find your local office at twc.texas.gov.

What to Watch in 2026 and Beyond

Texas’ benefit maximum adjusts each October. The 2026 rate ($605) took effect October 1, 2025, and the 2027 rate will be announced later in 2026. Texas also periodically considers Medicaid expansion — if passed, it would significantly improve health coverage options for unemployed Texans. I’ll update this page when either changes.