1099 Tax Calculator for Texas Freelancers
Texas is one of the most freelancer-friendly states for one simple reason: no state income tax. If you are a 1099 contractor in Texas, you only need to worry about federal taxes — self-employment tax (15.3%) and federal income tax based on your bracket. This means your take-home pay is higher compared to freelancers in states like California or New York.
However, no state income tax does not mean tax-free. You still owe the full 15.3% self-employment tax on your net business income, plus federal income tax. The Qualified Business Income (QBI) deduction can reduce your federal taxable income by up to 20%, and retirement contributions to a Solo 401(k) or SEP IRA further lower your bill.
Use our free 1099 tax calculator to estimate your total tax liability as a Texas freelancer — including quarterly payment amounts and a W2 comparison so you can see exactly how much more you take home without state income tax.
Frequently Asked Questions
Do 1099 contractors pay state income tax in Texas?
No. Texas does not have a personal state income tax. 1099 contractors only pay federal taxes.
What taxes do Texas freelancers need to pay quarterly?
Only federal quarterly payments covering SE tax and federal income tax. No state quarterly payments needed.
Does Texas tax business income for LLCs and sole proprietors?
Texas has a franchise tax but it generally does not apply to sole proprietors or most single-member LLCs.
Data source: IRS 2026 tax brackets and state revenue department publications. Last reviewed: 2026-07-05.