How the Texas 1099 tax calculator works
Texas has no personal income tax, so a freelancer there pays two federal taxes on net profit, meaning what clients paid minus deductible business expenses: self-employment tax for Social Security and Medicare, and federal income tax. The national 1099 tax calculator shows how each is figured, with the formulas, the 2026 brackets and worked examples at several incomes.
At $100,000 of profit, a single filer owes $14,129.55 of self-employment tax and $8,235.00 of federal income tax, $22,364.55 in all (22.4% of profit). Those amounts are the same in every state without an income tax; the calculator above works them out for your own numbers.
The Texas franchise tax
Texas has no personal income tax. Its franchise tax applies to entities such as corporations and LLCs, not to a sole proprietorship that isn't organized to limit liability, so a freelancer working in their own name doesn't file it.
A single-member LLC is a taxable entity, but for reports due in 2026 and 2027 an entity with total revenue at or below $2,650,000 owes no franchise tax and files only its information report. Above that, the rate is 0.75% (0.375% for retail and wholesale) of the taxable margin.
Texas vs. neighboring states
The same $100,000 single freelancer in Texas and nearby states:
| State | State income tax | Total tax | Take-home pay |
|---|---|---|---|
| Texas | $0.00 | $22,364.55 | $77,635.45 |
| Louisiana | $2,401.81 | $24,766.36 | $75,233.64 |
| New Mexico | $3,222.93 | $25,587.48 | $74,412.52 |
| Arkansas | $3,238.31 | $25,602.86 | $74,397.14 |
| Oklahoma | $3,636.58 | $26,001.13 | $73,998.87 |
You generally owe state income tax where you live and work, not where your clients are.
Every state's figure for one example freelancer is in the 1099 tax by state table, which you can sort and download.
Selling a rental property in Texas? The Texas rental property capital gains tax calculator works out the federal and state tax on the sale, depreciation recapture included.
States with similar income taxes
Texas is one of 9 states with no personal income tax. What the closest of them still require:
- South Dakota: Sales tax on services in South Dakota.
- Tennessee: Tennessee's business tax.
- Washington: Washington's B&O tax on gross income.
- Wyoming: Sales tax on services in Wyoming.
Quarterly estimated taxes for Texas freelancers
With no Texas income tax, your quarterly estimated payments go to the IRS only, on Form 1040-ES, due April 15, June 15 and September 15, 2026, and January 15, 2027. The "Quarterly payments" view above splits your estimate into equal installments, and the national page explains the safe-harbor rules that avoid an underpayment penalty.
The bottom line
A Texas freelancer's 1099 tax bill is mostly federal: on $100,000 of net profit, self-employment tax is $14,129.55 and federal income tax $8,235.00, and Texas adds no income tax on earned income. All in, that is $22,364.55, or 22.4% of profit.
Set aside about that share of every payment, pay the IRS each quarter, and rerun the Texas 1099 tax calculator when your income changes.
Frequently asked questions
How much should I set aside for taxes as a freelancer in Texas?
A single freelancer in Texas with $75,000 of net profit would owe about $15,494.90 in 2026, or 20.7%; at $100,000 the estimate is $22,364.55 (22.4%). Setting aside a similar share of every payment you receive, and paying it in quarterly installments, keeps you from facing a large bill and underpayment penalties at filing time.
Does Texas have a state income tax?
No. Texas has no personal income tax. Its franchise tax doesn't apply to a sole proprietorship, so most freelancers pay federal self-employment and income tax only.
Do I still pay self-employment tax and estimated tax in Texas?
Yes. Both are federal, so they apply in Texas as in every state: Texas self-employment tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on 92.35% of net profit, and you pay it with federal income tax through quarterly estimated tax payments due April 15, June 15 and September 15, 2026, and January 15, 2027, so for income tax your Texas estimated tax payments all go to the IRS. The national 1099 tax calculator explains both.
Sources and further reading
- Self-employment tax (Social Security and Medicare taxes) (opens in a new tab), Internal Revenue Service
- IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (opens in a new tab), Internal Revenue Service
- Qualified business income deduction (opens in a new tab), Internal Revenue Service
- Estimated taxes (opens in a new tab), Internal Revenue Service
- Contribution and benefit base (opens in a new tab), Social Security Administration
- 2026 State Income Tax Rates and Brackets (opens in a new tab), Tax Foundation
- Franchise Tax (opens in a new tab), Texas Comptroller of Public Accounts
- Franchise Tax FAQ: Taxable Entities (opens in a new tab), Texas Comptroller of Public Accounts
- Texas Comptroller of Public Accounts (opens in a new tab), State of Texas
Related calculators
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- T-Bill vs CD CalculatorHolding your tax money for a few months? A Treasury bill's interest is exempt from state tax.
- 1099 vs W-2 CalculatorWeighing a contract against a job? See the hourly 1099 rate that matches a salary and its benefits.