Self-Employment Tax in Texas (2026 Calculator)
Texas has no state income tax on individuals. If you are self-employed in Texas you still owe federal self-employment tax (15.3% on 92.35% of your net earnings, with the Social Security part applying only up to the $184,500 wage base) and federal income tax.
Your estimate
Enter your self-employment income above to see how much to set aside.
Quarterly payments
Pay about $0.00 by each date:
| Self-employment tax (Social Security + Medicare) | $0.00 |
|---|---|
| Federal income tax (extra from self-employment) | $0.00 |
| Total federal tax | $0.00 |
Texas state income tax: $0 (Texas has no personal income tax)
Add your business miles: each mile lowers your tax.
Federal taxes only. Tax credits and Texas franchise tax are not included.
Delivering for DoorDash in Texas? The DoorDash tax calculator does the same math with wording for Dashers.
Driving for Uber or Uber Eats in Texas? Use the Uber driver tax calculator.
What self-employed Texans pay
| Tax | What you pay (2026) |
|---|---|
| Texas state income tax | $0. The Texas Constitution does not allow a state tax on the net incomes of individuals. |
| Federal self-employment tax | 15.3% of 92.35% of your net profit: 12.4% for Social Security (only on the first $184,500 of W-2 wages and self-employment earnings combined) plus 2.9% for Medicare. None if that 92.35% figure is under $400. Sources: IRS: Self-employment tax, IRS Topic 554, SSA: Contribution and benefit base |
| Federal income tax | 10% to 37%, in brackets, on your taxable income: what is left after half of your self-employment tax, the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and the qualified business income deduction. Sources: IRS Rev. Proc. 2025-32 (PDF), IRS: Qualified business income deduction |
| Additional Medicare Tax | Only at high income: an extra 0.9% on wages and self-employment earnings above $200,000 ($250,000 if married filing jointly, $125,000 if married filing separately). |
Assumptions: you are a sole proprietor, or the only owner of an LLC that has not elected to be taxed as a corporation, with no employees; you take the standard deduction, have no tax credits and no income other than this business and W-2 wages; and all tips you enter qualify for the tips deduction. If you tick the specified service box, the tips deduction is not applied, and the qualified business income deduction shrinks once your taxable income is over $201,750 ($403,500 if married filing jointly) and is zero from $276,750 ($553,500). Every figure and its source is listed on the methodology page.
Sources: IRS: Single member limited liability companies, IRS Instructions for Form 8995-A, IRS: No tax on tips
Do I owe Texas franchise tax?
Franchise tax is a Texas privilege tax on taxable entities formed or doing business in the state. Whether your business is one depends on how it is legally set up, not on how the IRS taxes it.
- Sole proprietor with no LLC: not a taxable entity. The Texas Comptroller says a sole proprietorship that is not legally organized in a manner that limits its liability is not a taxable entity.
- Single-member LLC: a taxable entity, even though it files as a sole proprietor for federal income tax. It owes no franchise tax when its annualized total revenue is at or below the no tax due threshold of $2,650,000 (report years 2026 and 2027), but it is still required to file a Public Information Report or an Ownership Information Report.
The calculator above does not include franchise tax.
Sources: Texas Comptroller: Franchise tax FAQ, taxable entities, Texas Comptroller: Franchise tax, Texas Comptroller: No tax due reporting for report year 2024 and later
Frequently asked questions
Does Texas tax self-employment income?
Not with a state income tax. Article 8, Section 24-a of the Texas Constitution says: "The legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income."
Federal tax is separate and still applies in Texas: self-employment tax of 15.3% on 92.35% of your net earnings, plus federal income tax.
Sources: Texas Constitution, Article 8, Section 24-a, IRS: Self-employment tax, IRS Topic 554
Do I still pay quarterly estimated taxes in Texas?
Yes, to the IRS. Estimated tax is used to pay federal income tax and self-employment tax. The 2026 due dates are listed next.
April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. You generally have to make estimated tax payments if you expect to owe $1,000 or more when you file your return.
Most people avoid the underpayment penalty if they owe less than $1,000 after withholding and credits, or paid at least 90% of this year's tax or 100% of last year's tax, whichever is smaller. You can pay online, by phone, with the IRS app, or by mail with Form 1040-ES.
Does my single-member LLC owe Texas franchise tax?
It is a taxable entity for franchise tax. The Texas Comptroller says a single-member LLC filing as a sole proprietor for federal income tax purposes is a taxable entity, while a sole proprietorship that is not legally organized in a manner that limits its liability is not.
A taxable entity owes no franchise tax when its annualized total revenue is at or below the no tax due threshold, which is $2,650,000 for report years 2026 and 2027. It is then not required to file a No Tax Due Report, but it is still required to file a Public Information Report or an Ownership Information Report.
Sources: Texas Comptroller: Franchise tax FAQ, taxable entities, Texas Comptroller: Franchise tax, Texas Comptroller: No tax due reporting for report year 2024 and later
Is the tips deduction available to self-employed Texans?
Yes, if you qualify. It is a deduction on your federal income tax return: for 2025 through 2028, employees and self-employed people can deduct qualified tips of up to $25,000 a year, earned in an occupation on the IRS list of occupations that customarily received tips.
If you are self-employed, the deduction can't be more than your net income from the business where you earned the tips, and it is not available to self-employed people in a specified service trade or business. It phases out when modified AGI is over $150,000 ($300,000 if married filing jointly), and married people must file jointly to claim it. Tips are still subject to self-employment tax.
Sources: IRS: No tax on tips, IRS: Occupations that customarily received tips, IRS: Tip recordkeeping and reporting
Which miles count as business miles?
Business miles. Driving between your home and your main or regular place of work is commuting, and the IRS says commuting costs are not deductible. IRS Publication 463 explains which trips count as business in different situations.
Keep a record as you go: the miles for each business trip, the date, the destination and the business purpose, plus your total miles for the year. Business parking fees and tolls can be deducted on top of the standard mileage rate. To use the standard mileage rate for a car you own, you must choose it in the first year you use the car for business.
For 2026 the rate is 72.5¢ per mile for January to June and 76¢ per mile for July to December.
Disclaimer
This calculator gives an estimate for planning only. It is not tax, legal or financial advice. Your actual tax depends on details it does not ask about. GigTaxMath is not affiliated with, endorsed by or sponsored by the IRS, the State of Texas, the Texas Comptroller, DoorDash or Uber.
Last updated: · Tax year 2026