🧮 Calculate Your Texas Freelancer Taxes
Select Texas in the state dropdown (or leave blank — Texas = $0 state tax).
Open the Calculator →Texas Freelancer Tax Rates 2026
As a Texas-based 1099 contractor, you only owe federal taxes. No Texas state income tax, no Texas franchise tax for sole proprietors.
| Tax Type | Rate | Notes |
|---|---|---|
| Self-Employment Tax | 15.3% | Federal — Social Security + Medicare |
| Federal Income Tax | 10% – 37% | Progressive brackets, standard deduction applied |
| Texas State Income Tax | 0% | Texas has NO state income tax ✓ |
| Texas Franchise Tax | $0 | Sole proprietors exempt ✓ |
Texas vs California: Tax Savings for Freelancers
| Annual Income | Texas Total Tax | California Total Tax | TX Savings vs CA |
|---|---|---|---|
| $50,000 | $10,461 | $11,309 | +$848/yr saved |
| $75,000 | $17,101 | $19,465 | +$2,364/yr saved |
| $100,000 | $25,745 | $30,159 | +$4,414/yr saved |
| $150,000 | $43,385 | $52,120 | +$8,735/yr saved |
Texas 1099 Tax Details 2026: Brackets, Deductions & Rankings
Texas levies no state income tax on individuals, which makes it one of only nine states where freelancers keep their entire net profit after federal taxes. Your 1099 tax bill in Texas is purely federal: 15.3% self-employment tax on 92.35% of net profit, plus federal income tax after the $16,100 standard deduction (single, 2026).
At $75,000 net profit, Texas ties with the other no-income-tax states for the lowest total 1099 tax burden in the country: $17,101 all-in (22.8% effective).
What a single freelancer pays in Texas (2026)
| Net profit | Texas state tax | Total tax (SE + federal + state) | Take-home | Effective rate |
|---|---|---|---|---|
| $50,000 | $0 | $10,461 | $39,539 | 20.9% |
| $75,000 | $0 | $17,101 | $57,899 | 22.8% |
| $100,000 | $0 | $25,745 | $74,255 | 25.7% |
| $150,000 | $0 | $43,385 | $106,615 | 28.9% |
Single filer, standard deduction, no QBI or other deductions. Computed with the same 2026 engine as the calculator.
How Texas compares to its neighbors at $75,000
| State | State tax | Total tax | vs Texas |
|---|---|---|---|
| Oklahoma | $2,591 | $19,693 | $2,591 more |
| Louisiana | $1,705 | $18,806 | $1,705 more |
| New Mexico | $2,110 | $19,212 | $2,110 more |
| Arkansas | $2,506 | $19,607 | $2,506 more |
Sources: IRS Rev. Proc. 2025-32 (federal brackets & standard deduction), SSA 2026 wage base ($184,500), Tax Foundation 2026 state individual income tax data, and the Texas Comptroller of Public Accounts. Last updated August 6, 2026.
Three Texas Tax Rules That Surprise New Freelancers
“No state income tax” is the headline, and it is true. But Texas raises its revenue somewhere, and there are three obligations that catch 1099 workers off guard — none of which show up in a federal tax calculator.
1. Your business structure decides whether you owe franchise tax
Texas does not tax your personal income, but it does levy a franchise tax (often called the margin tax) on business entities. Whether it applies to you has nothing to do with how much you earn — it depends entirely on how your business is registered.
| How you operate | Subject to franchise tax? | What this means for you |
|---|---|---|
| Sole proprietor (just your name and an EIN) | No — exempt | Nothing to file with the Comptroller |
| General partnership of individuals | No — exempt | Nothing to file with the Comptroller |
| Single-member LLC | Yes — subject entity | Annual filing due, even if $0 tax is owed |
| Multi-member LLC, PLLC, LP | Yes — subject entity | Annual filing due, even if $0 tax is owed |
| S-corp or C-corp | Yes — subject entity | Annual filing due, even if $0 tax is owed |
This is the trap: a freelancer forms a single-member LLC for liability protection, keeps filing a federal Schedule C exactly as before, and assumes nothing changed at the state level. It did. The LLC is now a taxable entity in Texas with an annual reporting deadline of May 15.
The practical impact is usually small. Texas sets a revenue threshold — currently in the millions — below which no tax is actually due, so a solo freelancer will almost certainly owe $0. But owing nothing and filing nothing are different things, and missed filings accrue penalties. Confirm your entity's current obligation directly with the Texas Comptroller before your first May 15.
2. Some freelance services are subject to Texas sales tax
Most states tax goods and leave services alone. Texas is different — it taxes a specific list of services, and two categories on that list catch a lot of freelancers: data processing services and information services.
| Type of freelance work | Generally taxable in Texas? |
|---|---|
| Web hosting, data storage, data entry, data manipulation | Likely yes — data processing |
| Compiling or reselling information, curated reports, mailing lists | Likely yes — information services |
| Writing, editing, copywriting | Generally no |
| Business or management consulting | Generally no |
| Custom software development and programming | Generally no — but see below |
Texas exempts 20% of the value of data processing and information services, so 80% of the charge is taxable when it applies. The state rate is 6.25%, and local jurisdictions can add up to 2% more, for a maximum combined rate of 8.25%.
The boundaries here are genuinely blurry. A developer building custom software is usually providing a non-taxable professional service; the same developer configuring a client's hosting and managing their data may be providing a taxable one. Invoices that bundle both can be treated as taxable in full. If a meaningful share of your income falls near that line, this is the one place on this page where a Texas CPA is worth an hour of their time — and where you may need a sales tax permit.
3. There is no state return, but the federal quarterlies still apply
Texas has no state income tax return and no state estimated payments, so your entire quarterly obligation is federal. Missing them still triggers IRS underpayment penalties — a common mistake among freelancers who move to Texas and assume “no state tax” means “nothing due until April.”
| 2026 deadline | What is due | Paid to |
|---|---|---|
| April 15, 2026 | Q1 federal estimated tax | IRS |
| May 15, 2026 | Franchise tax report — LLCs and corporations only | Texas Comptroller |
| June 16, 2026 | Q2 federal estimated tax | IRS |
| September 15, 2026 | Q3 federal estimated tax | IRS |
| January 15, 2027 | Q4 federal estimated tax | IRS |
What “No Income Tax” Actually Costs You in Texas
Every calculator on the internet will tell you Texas saves you money. That is true for income tax, and the tables above show exactly how much. But Texas still has to fund its schools and roads, and it does that through two other taxes — so the honest answer depends on how you live, not just what you earn.
Property tax replaces the income tax
Texas has no state property tax, but local property taxes are among the highest effective rates in the country. For a freelancer who owns a home, a significant share of the income-tax saving shown in the Texas vs. California table can be absorbed by a property tax bill that would be materially lower in a state that taxes income instead.
The saving is largest for renters and for freelancers who own modest property relative to their income. It is smallest for high earners with expensive homes — who may find the two systems closer to a wash than the headline number suggests.
Sales tax is comparatively high
At a combined maximum of 8.25%, Texas sits toward the upper end nationally. This falls hardest on freelancers who spend a high proportion of their income on taxable goods, and lightest on those whose largest expenses are rent, groceries and services.
So who actually wins?
A freelancer earning $100,000 who rents an apartment keeps close to the full $4,414 the table shows against California. A freelancer earning $100,000 who owns a $600,000 home keeps considerably less of it once the property tax bill lands. Neither number is wrong — they answer different questions.
The calculator on this page estimates your income tax position, which is the part that follows you regardless of housing. Treat property and sales tax as a separate line in your own budget before deciding a move to Texas pays for itself.
Texas Freelancer Tax FAQ
Does Texas have a state income tax for freelancers?
No. Texas has no state personal income tax. Freelancers and independent contractors in Texas only pay federal self-employment tax (15.3%) and federal income tax. This makes Texas one of the most tax-friendly states for remote workers and freelancers in the US.
Do I need an LLC to freelance in Texas?
No. You can work as a sole proprietor using your SSN or an EIN, and Texas asks nothing of you at the state level. An LLC buys liability separation between your business and personal assets — but it also makes you a franchise tax entity with an annual May 15 filing. Federally it changes nothing by default: a single-member LLC is a disregarded entity, so you still file the same Schedule C. Choose an LLC for liability protection, not for tax savings.
I moved to Texas mid-year. Do I still owe my old state’s income tax?
Yes, on the income you earned while you were a resident there. Most states require a part-year resident return covering the months before your move. Texas asks for nothing after you arrive, but your former state’s claim on the earlier period does not disappear. Keep clear records of your move date, and expect closer scrutiny if you left a high-tax state — residency is judged on facts like where you physically live, your driver’s license and voter registration, not simply a mailing address.
I live in Texas but my clients are in California. Do I owe California tax?
Generally no. Income from services is usually sourced to where the work is performed, not where the client sits. If you are a Texas resident doing the work from Texas, that income is normally outside California’s reach — a client’s location does not by itself create a filing obligation. The picture changes if you physically travel to another state to perform the work, which can make that portion taxable there. Being paid by an out-of-state company is not the same as earning income in that state.
Do any Texas cities charge a local income tax?
No. Unlike Ohio, Pennsylvania or New York, no Texas city levies a local income tax. Houston, Dallas, Austin and San Antonio freelancers all owe the same $0 in state and local income tax. Local governments in Texas are funded through property and sales tax instead, which is covered in the section above.
Do Texas freelancers still pay quarterly estimated taxes?
Yes — but only federal quarterly taxes to the IRS. There are no Texas state estimated tax payments. Federal payments are due: April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15, 2027 (Q4). Pay at irs.gov/payments.
📐 How the Texas estimate works
Good news for Texas freelancers: Texas has no state income tax on your earnings. So this estimate is federal income tax + self-employment tax only — calculated on the actual 2026 IRS figures, not rounded-off guesses.
- Federal brackets & standard deduction: IRS Rev. Proc. 2025-32 (2026)
- Self-employment tax: 15.3% with the 92.35% net-earnings adjustment, the 50% SE-tax deduction, and the 0.9% Additional Medicare Tax — per IRS rules
- Social Security wage base: $184,500 for 2026 (SSA)
- Texas income tax: none — Texas does not tax freelance or self-employment income
Built & maintained by Rahul B.
A software developer who got tired of “free” 1099 calculators that use lazy flat rates and give wrong numbers — so I built one on the actual 2026 IRS brackets and real state-by-state rates, updated every tax year. More about this tool →
Last reviewed for tax year 2026 · Independent tool — not affiliated with the IRS. Estimates for planning only; verify with a tax professional before filing.