No state income tax, and no state estimated payments
Texas doesn't tax individuals' income, so you won't make state estimated income tax payments. Your quarterly payments go to the IRS alone.
Texas tax guide
Texas taxes for self-employed workers in 2026
Texas has no state income tax, but that doesn't mean no tax. Federal tax still applies, LLCs have Texas filing duties, and some common services are subject to sales tax.
Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides
Based on Texas Comptroller franchise tax guidance and its publications on taxable services.
Franchise tax depends on how you're organized
The Comptroller says a sole proprietorship that isn't legally organized to limit its liability is not a taxable entity for franchise tax. A single-member LLC is a taxable entity, even if it files as a sole proprietor for federal income tax.
For 2026 and 2027 reports, the no tax due threshold is $2,650,000. Most small LLCs owe no franchise tax, but they still have to file a Public Information Report or Ownership Information Report each year.
Some services are subject to Texas sales tax
The Comptroller treats cleaning of homes and other buildings, and landscaping and lawn care, as taxable services, with some exceptions. One exception covers a lawn care sole operator with no employees, until gross receipts from those services exceed $5,000 over the most recent four calendar quarters.
If you do this kind of work, read the Comptroller's publication for your trade and register to collect sales tax if it applies to you.
Your federal tax comes first
Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.
Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.
Recordkeeping checklist
Set aside for federal tax from every payment you receive.
Make federal estimated payments if you expect to owe enough.
Keep receipts and a mileage log for everything you deduct.
If you have an LLC, file your Public Information or Ownership Information Report.
Check whether your service is taxable in Texas.
Free tools for this
Calculator
1099 and Self-Employment Tax Calculator
Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.
Calculator
Quarterly Tax Set-Aside Calculator
Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.
Template
Quarterly Tax Savings Worksheet
Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.
Template
Business Expense Log Template
Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.
Official sources
Related guides
Self-employment tax guide
Self-Employment Tax
The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.
Estimated tax guide
Quarterly Estimated Taxes
2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.
Schedule C education
Schedule C Expense Categories
Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.
Texas Taxes FAQ
Do self-employed people pay state income tax in Texas?
No. Texas doesn't tax individuals' income. You still owe federal income tax and self-employment tax.
Does a sole proprietor pay Texas franchise tax?
A sole proprietorship that isn't organized to limit its liability isn't a taxable entity. A single-member LLC is, though most small ones owe no tax and just file an information report.
Do I charge sales tax for lawn care in Texas?
Landscaping and lawn care are generally taxable in Texas. A sole operator with no employees is exempt until gross receipts from those services exceed $5,000 over the most recent four calendar quarters.
Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.