As a 1099 independent contractor in Texas, you pay federal income tax and self-employment tax (15.3%) — but you can deduct every legitimate business expense to reduce your tax bill. Texas has no state income tax. As a 1099 worker in Texas, you only pay federal income tax and self-employment tax (15.3%). This makes Texas one of the best states for gig worker take-home pay.
The list of deductible business expenses for 1099 workers is determined by federal IRS rules — specifically IRS Schedule C. These rules apply uniformly regardless of which state you live in. The main difference for Texas workers is how deductions interact with your state tax liability.
Since Texas has no state income tax, your deductions primarily reduce your federal income tax and self-employment tax (15.3%). Even without state tax, a $10,000 deduction saves a typical gig worker $2,500–$4,000 in federal taxes alone.
Texas has no state income tax. As a 1099 worker in Texas, you only pay federal income tax and self-employment tax (15.3%). This makes Texas one of the best states for gig worker take-home pay.
Texas has no state income tax and no state estimated tax requirements. You only need to pay federal quarterly estimates using IRS Form 1040-ES.
See every write-off available for your specific job type — DoorDash, Uber, Airbnb, OnlyFans, Instacart and more.
Open 1099Deductions.com →