A wide-angle beam propagation method suitable for analyzing anisotropic devices involving liquid crystals is presented. The mathematical formulation is based on a system of coupled differential equations involving an electric and a magnetic field component. The contribution of all dielectric tensor elements is included. A numerical implementation based on finite differences is used. Numerical examples are focused on light-wave propagation within twisted nematic pixels found in microdisplays, with all effects arising at pixel edges that are incorporated. A comparison between the results obtained and the prediction of finite-difference time-domain simulations is conducted, showing satisfactory agreement. The required computational effort is found to be minimal.