Merkel is a city in Taylor County, Texas, United States.Merkel is located 17 miles west of Abilene near Interstate 20.The town has a total area of 2.8 square miles (7.2 km2), all land.[5] Around 1870, when the Texas and Pacific Railway was built, the city was founded as Windmill Town.[6] As of the 2020 United States census, 2,471 people, 875 households, and 640 families were residing in the town.