Texas 1099 Tax &
Freelance Hourly Rate Calculator
Freelancing in Texas offers significant tax savings because the state levies zero personal income tax. Calculate your ideal billing rate, net take-home salary, and 15.3% federal self-employment obligations.
1Financial Parameters
Enter how much net cash you want in your pocket after all taxes.
Deductible Schedule C write-offs reduce your taxable income.
Billable Work Hours & Efficiency
Most freelancers spend 25% of time on admin, invoicing, and proposals.
Based on 1470 billable hours/yr (49 work weeks).
Gross Revenue Allocation
Visual breakdown of where every dollar of your gross billing goes
$118,014
Tools to Maximize Your Deductions & Cut Costs
Hand-picked services to help 1099 contractors track write-offs and lower tax bills legally.
QuickBooks Self-Employed
Save $4,000+ Average in Deductions
Automatically track 1099 business mileage, sort Schedule C expenses, and calculate quarterly estimated tax obligations.
Wise Business
Receive USD from Clients with Zero Markup
Get dedicated US routing and account numbers to receive ACH and wire transfers from clients with mid-market exchange rates.
FreshBooks Invoicing
Professional Invoicing & Get Paid 2x Faster
Create sleek client invoices with online credit card / ACH payments, automatic payment reminders, and time tracking.
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How Taxes Work for Texas Independent Contractors in 2026
Under the Texas Constitution, the state is prohibited from imposing a personal individual income tax on residents. For freelancers, consultants, and gig workers in Austin, Dallas, Houston, and San Antonio, this means you keep 100% of your earnings free from state-level income taxation.
Zero State Income Tax
You do not need to file an individual state tax return or submit quarterly state vouchers. All your estimated tax payments go strictly to the IRS on Form 1040-ES.
Federal FICA Still Applies
Even without state income tax, you must still pay the mandatory 15.3% federal self-employment tax (12.4% Social Security and 2.9% Medicare) on 92.35% of your net profits.
Texas Franchise Tax Exemption
If you form an LLC in Texas, businesses with total annualized revenue under the state threshold ($2.47 million) owe zero Texas Franchise Tax, though an annual No Tax Due Report is filed with the Comptroller.
Texas 1099 Freelance Tax FAQ
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