1099 Tax Estimator, Texas
Free 1099 tax estimator for US freelancers and independent contractors. Calculate your self-employment tax (15.3%), federal income tax, and quarterly payment schedule based on your 1099 income and filing status. 2024 tax year rates.
Texas has no state income tax, making it one of the most tax-friendly states for freelancers and 1099 contractors. You only owe federal income tax and the 15.3% self-employment tax (Social Security + Medicare).
While Texas has no income tax, you still need to pay federal self-employment tax and make quarterly IRS estimated payments.
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Frequently Asked Questions, 1099 Tax Estimator in Texas
How much should a Texas 1099 contractor set aside for taxes?↓
Texas freelancers and 1099 contractors typically need to set aside 25–35% of net income for taxes. This covers federal self-employment tax (15.3% on the first $160,200 of net self-employment income, 2.9% above that) plus federal income tax at your marginal rate. There is no Texas state income tax, which is a significant advantage.
Does Texas have any taxes for self-employed workers besides federal?↓
Texas has no state income tax, so 1099 workers only pay federal taxes. However, Texas does have a Franchise Tax (also called the Margin Tax) that applies to businesses with revenues above $2.47 million. Most freelancers and small contractors will be below this threshold and owe no Texas business tax.
When are federal estimated tax payments due for Texas 1099 workers?↓
Federal quarterly estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year. There are no state estimated payments required in Texas. If you expect to owe $1,000 or more in federal taxes, you are generally required to make quarterly payments to avoid underpayment penalties.
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