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Texas · Tax year 2026

Texas 1099 Tax Calculator

Good news for Texas freelancers: there's no state income tax. This estimates your federal self-employment tax and federal income tax — the only taxes on 1099 income in the Lone Star State.

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Self-employment income after business expenses.

Sets your federal brackets & standard deduction.

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A W-2 job or spouse's income — taxes 1099 income at higher brackets.

No state income tax in Texas. Your state line is $0 — a real advantage over states like California. You only owe the two federal taxes above. State figure is an estimate — see our methodology.

Why Texas freelancers keep more

Texas is one of nine states with no individual income tax. For an independent contractor that's a meaningful saving: a freelancer earning the same profit in California could pay thousands in state tax that a Texan simply doesn't. Your only obligations on 1099 income are federal — self-employment tax (see our self-employment tax calculator) and federal income tax.

What about the Texas franchise tax?

Texas has no personal income tax, but it does levy a franchise tax on certain business entities — and it only applies above a fairly high revenue threshold. Most sole-proprietor freelancers and single-member LLCs filing as sole proprietors fall below it and owe nothing. If your business grows substantially, check the current threshold with the Texas Comptroller.

Quarterly taxes for Texas contractors

You still make federal quarterly estimated payments to the IRS if you expect to owe $1,000 or more. There's no separate state filing. See how much to set aside for 1099 taxes.

Frequently asked questions

Does Texas have a state income tax for 1099 contractors?

No. Texas is one of nine states with no individual income tax, so freelancers pay no state income tax on 1099 earnings. You still owe federal self-employment tax and federal income tax.

How much should a Texas freelancer set aside for taxes?

With no state income tax, Texas freelancers can usually set aside less than those in California or New York — often around 20–25% of net profit for federal taxes combined.

Do Texas self-employed people pay any state tax at all?

Not on personal income. Some businesses owe the Texas franchise tax, but it only applies above a high revenue threshold, so most sole-proprietor freelancers won't owe it.

Other state calculators

Compare your tax in other states — your federal bill stays the same, but state tax varies widely:

Estimates based on 2026 federal and Texas figures; state tax estimate excludes state-specific deductions and credits. Not tax advice — confirm with the IRS, your state tax agency, or a professional. See our disclaimer.