1099 Quarterly Taxes in Texas (2025-2026)
Texas has no state income tax, which makes it one of the most tax-friendly states for self-employed Americans. But it doesn't mean you're off the hook — Texas freelancers still owe federal income tax and the full 15.3% self-employment tax. There's also a state-level franchise tax for some businesses.
Texas state income tax (2025)
0%. Texas does not tax personal income, which includes 1099 / self-employment earnings. You file a federal return (Form 1040 + Schedule C + Schedule SE) but no state income return is required.
Texas franchise tax — does it apply to me?
The Texas franchise tax applies to LLCs, corporations, and partnerships earning above the "no-tax-due" threshold (currently $2.47 million in annual revenue). Most sole-proprietor freelancers and small LLCs are well below this threshold and owe nothing. However, you may still need to file a "no tax due" report annually if your entity is registered with the Texas Secretary of State.
Federal quarterly payments — Texas-specific tips
Federal quarterly estimated tax due dates apply: April 15, June 16, September 15, 2026, and January 15, 2027. Pay through IRS Direct Pay (free) or mail Form 1040-ES with a check.
Because Texas residents have no state-level income tax to deduct, your federal AGI is your federal AGI — there's no state itemization layer to worry about. This makes Texas freelance tax planning unusually clean.
Common Texas freelancer deductions
- Standard business expenses (home office, mileage, software, contractors).
- Half of SE tax (federal above-the-line deduction).
- QBI deduction — 20% of qualified business income, federal only.
- SEP-IRA and Solo 401(k) contributions.
- Self-employed health insurance premiums.
Sales tax — separate from income tax
If you sell physical products or certain taxable services in Texas, you may owe state sales tax (6.25% state + up to 2% local). This is collected separately from income tax. Most service-based freelancers (writers, designers, developers, consultants) are not required to collect sales tax, but check the Texas Comptroller's taxable services list.
Try the calculator with Texas pre-selected
Run the Quarterly1099 calculator → (Texas state rate = 0%, so your bill is federal only.)