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Texas 1099 tax calculator

Texas is one of the most tax-friendly states in the country for freelancers and self-employed workers. With no state income tax, you owe only federal: the 15.3% self-employment tax plus federal income tax. That's a meaningful advantage over freelancers in California or New York paying a combined 35-45% effective rate.

Your 1099 income

Updates instantly as you type.

Total payments received from clients

$

Deductible expenses (home office, software, mileage, etc)

$

If you also have a regular job — affects your federal bracket

$

Total tax owed

Self-employed

$14,295

Pay $3,574 quarterly to the IRS — that's an effective rate of 19.9% on your net profit.

Tax breakdown

  • Net profit (income − expenses)
    $72,000
  • Self-employment tax (15.3%)
    $10,173
  • Federal income tax
    $4,122
  • QBI deduction (20% reduces fed tax)
    −$14,400
  • Half-SE tax deduction
    −$5,087
  • After-tax take-home
    $57,705

Q1

Apr 15

$3,574

Q2

Jun 16

$3,574

Q3

Sep 15

$3,574

Q4

Jan 15

$3,574

AI Analysis

Texas freelancer tax landscape

On $80,000 of net 1099 profit, a single freelancer in Texas owes roughly $11,300 in SE tax + $9,000-$10,000 in federal income tax (after standard deduction, half-SE deduction, and QBI) — a combined effective rate around 25-26%. The same freelancer in California would owe an additional ~$5,000-$6,000 in state tax, pushing the effective rate over 32%.

Texas does not require state-level quarterly estimated payments — there's no state form to file. You only owe federal quarterlies to the IRS via Form 1040-ES. Due dates: April 15, June 16, September 15, and January 15 of the following year.

Texas does have one wrinkle for freelancers operating as LLCs: the Texas Franchise Tax (also called the Margin Tax). It applies to LLCs, partnerships, and corporations with revenue over roughly $1.23 million annually. Below that threshold, you owe nothing — most freelancers don't hit it. Sole proprietors are exempt regardless of revenue.

Texas sales tax is 6.25% state plus local additions — most TX freelancers don't owe sales tax on services (Texas exempts most professional services from sales tax). However, software-as-a-service and certain digital products are taxable. Consult the Texas Comptroller if you're unsure whether your service is taxable.

Compare Texas to other states

See how 1099 taxes in Texas compare to other major states:

Frequently asked questions

Do Texas freelancers pay state income tax?

No. Texas does not levy a state income tax on individuals or pass-through entities. You only owe federal taxes (SE tax + federal income tax).

Do I need to file quarterly state taxes in Texas?

No state filing is required for individual income — Texas has no income tax form. You'll still file federal quarterlies to the IRS via Form 1040-ES if you owe more than $1,000 in tax for the year.

What's the Texas Franchise Tax?

A revenue-based tax applied to LLCs, partnerships, and corporations with annual revenue over ~$1.23 million. Most freelancers fall below this threshold. Sole proprietors are exempt regardless.

Do I need to charge sales tax on freelance services in Texas?

Most professional services (consulting, writing, design) are exempt from Texas sales tax. SaaS, digital products, and some specific services are taxable. The Texas Comptroller publishes a service-by-service guide.

Is Texas a good state for freelancers?

Yes — among the most tax-friendly. No state income tax, generally low cost of living outside major metros, and a large business-friendly regulatory environment. Property tax is high if you own a home.

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