Texas Self-Employed Taxes: The Complete 2026 Guide
Texas has no personal state income tax, which makes it one of the friendliest states for freelancers and 1099 gig workers. You still owe federal income tax and 15.3% self-employment tax, and businesses above ~$2.47M in revenue owe Texas franchise tax. This guide covers everything a self-employed Texan needs, with our free [Texas self-employed tax calculator](https://gigmytax.com/calculators/texas-self-employed-tax).
The one big Texas advantage
No state income tax. A Texas freelancer with $60k net self-employment profit skips the ~$2,500–$4,000 California would charge on the same income.
What Texas self-employed still owe
Federal income tax at 10–37% marginal brackets. Self-employment tax at 15.3% on 92.35% of net profit. Federal quarterly estimates when you will owe $1,000+ for the year.
Texas franchise tax
Texas taxes business entities (LLCs, corporations, partnerships) via franchise tax if annual revenue exceeds $2.47M. Sole proprietors and single-member LLCs treated as disregarded entities file the No-Tax-Due Report but owe nothing below the threshold.
Sales tax for Texas self-employed
Texas has 6.25% state sales tax + up to 2% local, on tangible goods and taxable services. Freelance services (writing, design, consulting) are generally NOT taxable. Physical product sales, digital goods, and some services (data processing, security) ARE taxable.
Deductions still cut your bill
Every federal deduction still lowers your federal + SE tax base. Mileage at $0.70/mi, home office ($5/sqft simplified), phone %, health insurance, and Solo 401(k) all apply the same as in high-tax states. See our [1099 deductions checklist](https://gigmytax.com/blog/1099-deductions-checklist).
Worked example: $70k Texas freelancer
$70k gross − $6k expenses = $64k net. SE tax ≈ $9,046. Federal (single, standard deduction, ½ SE) ≈ $7,700. State ≈ $0. Total ≈ $16,746 (~24% of gross). Same freelancer in California would owe an extra ~$3,200. Verify: [Texas calculator](https://gigmytax.com/calculators/texas-self-employed-tax).
Quarterly estimates for Texans
Federal quarterlies still apply — April 15, June 15, September 15, January 15. No Texas state quarterly to worry about. See our [freelancer quarterly tax guide](https://gigmytax.com/blog/freelancer-quarterly-tax-guide).
Bottom line
Texas self-employment tax = federal + SE only. Set aside 22–28% of net profit for federal + SE, and pay quarterly if you will owe $1,000+.
Frequently asked questions
+Does Texas have state income tax for self-employed?
No. Texas has no personal state income tax for any type of income, including self-employment.
+How much tax do self-employed Texans pay?
Typically 22–30% of net profit — federal income tax plus 15.3% SE tax. No state income tax.
+Do Texas freelancers pay franchise tax?
Only entities (LLC, corp, partnership) with revenue above ~$2.47M. Sole proprietors below the threshold owe nothing.
+Do I need to charge sales tax in Texas?
Only on taxable goods and specific services. Freelance writing, design, and consulting are generally not subject to Texas sales tax.
+Do I still pay quarterly estimated tax in Texas?
Yes — federal quarterly estimates still apply. There are no Texas state quarterly payments to make.
Related calculators
- Texas Self-Employed Tax CalculatorFederal + SE tax for Texas 1099 workers — no state income tax.
- California Self-Employed Tax CalculatorFederal + SE + CA state tax for California 1099 workers.
- Florida Self-Employed Tax CalculatorFederal + SE tax for Florida 1099 workers — no state income tax.
- New York Self-Employed Tax CalculatorFederal + SE + NY state (and NYC) tax for New York 1099 workers.
Related guides
- California Self-Employed Taxes: The Complete 2026 GuideHow California self-employed taxes work in 2026: state brackets to 13.3%, SE tax, quarterly payments, deductions, and a free calculator.
- Self-Employed Tax Estimator: The 2026 Federal, SE & State GuideHow to accurately estimate 2026 self-employed taxes — federal income tax, 15.3% SE tax, and state tax — with real formulas and a free calculator.
- 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.
- How Much Should I Save for Taxes as a Self-Employed Worker in 2026The exact % of every 1099 payout to save for taxes in 2026. Covers federal, self-employment, and state tax for freelancers, gig workers, and contractors.
- 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.