Estimate your combined Texas state (0%) and federal self-employment tax as a freelancer or 1099 contractor. Plan to set aside roughly 25-30% of net income.
Taxhub matches you with a licensed CPA who understands Texas tax law and specializes in freelancers. Upload your docs, hop on a video call, and let a professional handle it.
Get Matched with a CPA →Texas is one of nine states with no state income tax, making it an attractive location for freelancers and independent contractors. While you still owe federal income tax and the 15.3% self-employment tax, the absence of state income tax means you keep more of your earnings. Texas does have a franchise tax that may apply to certain business structures.
Since Texas has no state income tax, freelancers only need to worry about federal income tax and the 15.3% self-employment tax. This simplifies tax planning significantly.
All self-employed individuals in Texas must make quarterly estimated tax payments to the IRS if they expect to owe $1,000 or more. Since there's no state income tax, you only need to make federal quarterly payments. Our calculator above gives you the exact quarterly amounts based on your income.
Based on the absence of state income tax in Texas, we recommend setting aside approximately 25-30% of your net self-employment income for taxes. This covers federal income tax, self-employment tax (15.3%), and any applicable local taxes.
The exact percentage varies based on your total income, filing status, and deductions. Use the calculator above for a personalized estimate, then set up automatic transfers to a dedicated tax savings account each time you receive a payment.
Calculate your freelancer taxes for any state: