Freelance Taxes in Texas: Complete 2026 Guide
Texas has no personal income tax and no state-level capital gains tax.
No State Income Tax
Texas has no state income tax, which is a significant advantage for freelancers. However, LLCs and some businesses may be subject to the Texas Franchise Tax (margin tax) if gross revenue exceeds $2.47 million.
Quarterly Estimated Payments
No state quarterly estimated payments required.
Key Tax Facts for Texas Freelancers
- •No state income tax
- •No quarterly state estimated payments
- •Texas Franchise Tax may apply to LLCs above revenue threshold
- •High property taxes offset some of the tax advantage
Deductions in Texas
No state income tax means no state deductions to track for income tax purposes.
Top Freelancer Cities in Texas
Free Tax Calculators
Estimate your total tax burden — federal plus Texas — with our free calculators.
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.