Texas Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Texas state income tax as a freelancer or 1099 contractor. Texas has no state income tax.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$0
Total Tax Owed
$17,391

Summary

Total Income
$75,000
Total Taxes
-$17,391
After-Tax Income
$57,609
Effective Tax Rate(on total income)
23.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,348
Q2 (Apr-May)Due June 15
$4,348
Q3 (Jun-Aug)Due September 15
$4,348
Q4 (Sep-Dec)Due January 15 (next year)
$4,348
Each Quarterly Payment
$4,348

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,348. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Texas Tax Overview for Freelancers

Texas has no state income tax. As the second-largest state by population and economy, Texas offers strong job markets across multiple industries. Self-employed individuals in Texas pay federal self-employment tax (15.3%) plus federal income tax, and no state income tax — giving Texas freelancers a significant advantage.

No state income taxHigh property taxes (~1.8%)Multiple major metro areas with strong job marketsHigh sales tax (6.25-8.25%)Second-largest state economy

Self-Employment Taxes in Texas

If you work as a freelancer or independent contractor in Texas, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Texas state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Texas Income Tax for Freelancers

Texas has no state income tax. As the second-largest state by population and economy, Texas offers strong job markets across multiple industries.

Cost of Living for Freelancers in Texas

Texas' cost of living is about 7% below the national average, though Austin has become significantly more expensive. As a freelancer in Texas, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Texas Freelancers

  • No state income tax is a major financial advantage, especially for high earners
  • Texas has high property taxes (averaging 1.8%) which partially offset the lack of income tax
  • Austin, Dallas, Houston, and San Antonio each offer distinct and strong job markets
  • Consider that Texas has no state income tax but does have a high sales tax of 6.25% (up to 8.25% with local taxes)

Key Texas Tax Features

  • No state income tax
  • High property taxes (~1.8%)
  • Multiple major metro areas with strong job markets
  • High sales tax (6.25-8.25%)
  • Second-largest state economy

Model Your Texas Freelance Finances Over Time

This calculator shows your Texas tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Frequently Asked Questions

How is self-employment tax calculated in Texas?
Texas has no state income tax, so self-employed workers in Texas only pay federal self-employment tax (15.3% on 92.35% of net earnings) and federal income tax. This makes Texas one of the most favorable states for freelancers and 1099 contractors.
How much will I owe in quarterly taxes as a freelancer in Texas?
Your quarterly estimated tax payment in Texas depends on your total tax liability — including SE tax, federal income tax, and no state income tax (since Texas has none). Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Texas freelancers?
Freelancers in Texas can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. Since Texas has no state income tax, deductions only reduce your federal tax liability.
Does Texas have any special taxes for self-employed workers?
No. Texas has no state income tax and no additional self-employment taxes. You only need to worry about federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Texas?
The decision to form an LLC or S-Corp in Texas depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Texas tax professional for advice specific to your situation.

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