Texas 1099 Contractor Filing Checklist for 2026
No state income tax does not mean no state paperwork. Texas contractors still have franchise reporting, sales tax permits and county filings to keep straight, and getting them wrong costs more than the tax would have. This is the filing checklist, not another explainer on rates — for the dollar figures use the [Texas self-employed tax calculator](https://gigmytax.com/calculators/texas-self-employed-tax).
Federal filings, in order
Schedule C reports profit. Schedule SE computes the 15.3% self-employment tax on 92.35% of that profit. Schedule 1 carries the deductible half of SE tax, self-employed health insurance and retirement contributions. Form 1040-ES covers the four estimate dates: 15 April, 15 June, 15 September 2026 and 15 January 2027.
Franchise tax: reporting versus owing
Texas franchise tax applies to entities — LLCs, corporations, partnerships — not sole proprietors. The no-tax-due revenue threshold sits around $2.47M, and since 2024 entities below it no longer file a No Tax Due Report, but they do still file the annual Public Information Report by 15 May. Skipping it puts the entity's registration in jeopardy even with zero tax owed.
Do you need a sales tax permit?
Professional services — writing, design, consulting, most trades labour — are not taxable in Texas. Tangible goods, data processing, information services and security services are. If any part of what you sell is taxable you need a Texas Sales and Use Tax permit before the first sale, then file returns on the assigned monthly or quarterly cadence even in zero-sale periods.
Assumed name (DBA) and local registration
Trading under anything other than your legal name means filing an assumed name certificate with the county clerk where you work; entities also file at the state level. Some cities layer on their own registrations for home-based operations — check the municipality, not just the county.
Records that survive an audit
Keep a contemporaneous mileage log with date, destination, purpose and odometer; bank and card statements separated from personal spend; 1099-NEC and 1099-K copies; and home office square footage with a floor plan. Three years is the general federal retention window; six if income was understated by more than 25%.
A $70k Houston contractor, end to end
Gross $70,000, expenses $6,000, net $64,000. SE tax runs about $9,046, federal income tax near $7,700 as a single filer taking the standard deduction, state income tax $0. Total near $16,750, or roughly a quarter of gross, paid in four federal instalments of about $4,190.
Where Texans still lose money
Three recurring ones: treating gross platform payouts as income and skipping the mileage deduction; missing the 15 May Public Information Report for an LLC; and collecting no sales tax on a product line that was taxable all along. None of them are about the income tax Texas does not charge.
Bottom line
Federal filings do all the tax work; Texas filings protect your entity and permits. Diary 15 May for the state report and the four federal estimate dates, and the year runs quietly.
Frequently asked questions
+Does a Texas sole proprietor file anything with the state?
Usually only an assumed name certificate with the county if trading under a business name, plus sales tax returns if selling taxable goods or services.
+Do small Texas LLCs still file a No Tax Due Report?
No. Entities under the revenue threshold no longer file that report, but they must still file the annual Public Information Report by 15 May.
+Are freelance services subject to Texas sales tax?
Generally no. Writing, design and consulting are untaxed, while tangible goods, data processing, information and security services are taxable.
+How much should a Texas 1099 contractor set aside?
Around 22–28% of net profit covers federal income tax plus the 15.3% self-employment tax, with no state income tax to add.
+Do Texans pay state quarterly estimates?
No state income tax estimates exist. Only the four federal 1040-ES instalments apply.
+How long should Texas contractors keep records?
Three years from filing as a rule, extended to six years if income was understated by more than 25%.
About the author
Javed Niamat · Founder & Editor, GigTax
Javed Niamat founded GigTax to make self-employment tax math understandable for rideshare drivers, delivery couriers, creators and freelancers. He builds and maintains every calculator on this site and writes the guides that explain the numbers behind them.
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Related guides
- Texas Self-Employed Taxes: The Complete 2026 GuideHow self-employed taxes work in Texas for 2026: no state income tax, federal + SE tax, franchise tax, deductions, and a free calculator.
- The Complete 1099 Deductions Checklist for 2026Printable 1099 tax deductions checklist for 2026. Every Schedule C write-off freelancers and contractors miss — mileage, home office, phone, health, retirement.
- Quarterly Taxes for Freelancers: The 2026 GuideHow freelancers pay 2026 quarterly estimated taxes. Due dates, safe-harbor rules, penalty math, and step-by-step instructions using IRS Direct Pay or EFTPS.
- Self-Employment Tax Explained: 2026 Rates, Rules, and MathSelf-employment tax explained in plain English: 15.3% breakdown, the 92.35% adjustment, the ½ SE deduction, thresholds, and how to pay it in 2026.