PiggySelf-Employment Tax in Texas (2026)
no income tax
Texas has no state income tax, which is the reason a lot of freelancers move there. It is also the reason a lot of them get a nasty surprise in April: self-employment tax is federal, and no state can exempt you from it. Whatever you save on state income tax, the 15.3% still applies in full.
The federal part is the same everywhere
Self-employment tax replaces the payroll taxes an employer would otherwise split with you. As a freelancer you pay both halves: 12.4% for Social Security, on earnings up to the $184,500 wage base, and 2.9% for Medicare with no cap. Together that is 15.3%, charged on 92.35% of your net profit rather than all of it. See SE tax vs employee FICA and 2026 tax constants for the sourced figures.
At $100,000 of net profit federal SE tax is $14,129.55 in Texas — exactly as it would be in any other state.
What Texas adds
no income tax State model quality matches the freelancer tax estimator — statutory math on a profit proxy, not a filed state return.
No Texas personal income tax on wages/Schedule C profit. The estimator marks TX as no income tax — an honest quality badge, not a coarse guess dressed up as precision.
Franchise / margin tax (entities)
Texas has no personal income tax. Some LLCs and other taxable entities can owe Texas franchise (margin) tax above a revenue threshold — that is an entity filing, not a Schedule C “state income tax %.” Sole proprietors without an entity have a $0 state income-tax line for planning.
What the two look like together
| Net profit | Federal SE tax | State income tax* | SE as % of profit | SE + state |
|---|---|---|---|---|
| $40,000 | $5,651.82 | $0 | 14.1% | $5,651.82 |
| $75,000 | $10,597.16 | $0 | 14.1% | $10,597.16 |
| $120,000 | $16,955.46 | $0 | 14.1% | $16,955.46 |
* No Texas personal income tax on wages/Schedule C profit
Worked example: $78,000 profit in Texas
Single filer, $78,000 Schedule C net profit, no other earned income:
- Federal SE tax: $11,021
- Texas state income tax: $0 (no income tax)
- SE + state subtotal: $11,021 — before federal income tax and QBI
Cutting your reserve from ~30% to ~10% after a move to Texas is how freelancers get an April surprise — federal SE and federal income tax did not move.
Cross-check with the freelancer tax estimator and
2026 set-aside study (state_code=TX).
Quarterly payments
State-specific dates and envelopes: quarterly estimated taxes in Texas.
Federal estimated payments still apply if you expect to owe $1,000 or more. Use the safe harbor calculator and quarterly deadlines. There is no state income-tax estimate to pair with them.
Frequently asked questions
Do I pay self-employment tax if I live in Texas?
Yes. Self-employment tax is federal. Texas not having a state income tax makes no difference to it — you still owe 15.3% on 92.35% of your net profit once that profit reaches $400 for the year.
So what do I actually owe as a freelancer in Texas?
Federal self-employment tax plus federal income tax. There is no state income tax line. That usually means a lower total bill than in most states, but the self-employment portion is unchanged.
Do I still need to make quarterly payments in Texas?
Yes, to the IRS. If you expect to owe $1,000 or more in federal tax for the year, quarterly estimated payments apply the same as anywhere else. You just have no state estimated payment to make alongside them.
Work out your own numbers
- Freelancer Tax Estimator — pick Texas (TX); quality badge shows on the result.
- Self-Employment Tax Calculator — federal 15.3% only.
- 2026 set-aside study — filter CSV rows by
state_code=TX. - Set-aside by income — federal-leaning planning bands.
- SE tax vs employee FICA — why “15.3% of profit” is wrong.
- Methodology · 2026 tax constants — sources and dual-impl checks.
- All states · State comparison tool.