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How Self-Employment Tax Works in Texas (2026)
Self-employment tax is 15.3% — 12.4% Social Security plus 2.9% Medicare — applied to 92.35% of your net self-employment income, on top of federal and Texas income tax. Half of the SE tax (7.65% equivalent) is an above-the-line deduction against your federal taxable income.
| Piece | Rate / rule |
|---|---|
| Net earnings subject to SE tax | 92.35% of net profit |
| Social Security portion | 12.4% (up to $184,500 of net earnings) |
| Medicare portion | 2.9% · +0.9% above $200,000 |
| Deductible half of SE tax | 50%, above-the-line on your federal return |
Estimated payments are due quarterly (roughly mid-April, mid-June, mid-September, and mid-January). The 20% Qualified Business Income deduction (§199A) is not modeled here — it depends on your income level and business type. If you also have W-2 wages, the Social Security cap is measured against your combined earnings, so this estimate runs high.
Texas Self-Employment Tax by Income (2026)
Single filer, 1099 income is the only earnings for the year. The quarterly figure is an even 4-way split of the annual total.
| Net 1099 income | SE tax | Federal tax | Texas tax | Quarterly payment |
|---|---|---|---|---|
| $20,000 | $2,826 | $249 | $0 | $769 |
| $40,000 | $5,652 | $2,281 | $0 | $1,983 |
| $60,000 | $8,478 | $4,511 | $0 | $3,247 |
| $80,000 | $11,304 | $7,527 | $0 | $4,708 |
| $100,000 | $14,130 | $11,616 | $0 | $6,436 |
Texas Self-Employment Tax FAQ
How much is self-employment tax in Texas?
15.3% federal SE tax on 92.35% of net profit (12.4% Social Security up to $184,500, 2.9% Medicare), plus federal income tax - and no Texas state income tax. Half the SE tax is deductible on your federal return.
Do 1099 workers in Texas pay quarterly taxes?
Yes, federal ones - if you expect to owe $1,000 or more in federal tax, make estimated payments mid-April, mid-June, mid-September and mid-January. There is no Texas state estimated payment because there is no state income tax.
Does Texas have a franchise tax for sole proprietors?
The Texas franchise tax generally does not apply to sole proprietors or most single-member LLCs below the no-tax-due revenue threshold. This calculator covers income and SE tax, not franchise tax.
Methodology & Source
Texas state tax figures sourced from Texas Comptroller of Public Accounts (https://comptroller.texas.gov/), citing Tex. Const. art. VIII, § 24 (voter-approved 2019 ban on a state personal income tax). Federal brackets, standard deductions (single/MFJ/HoH), and FICA constants sourced from the IRS (Revenue Procedure 2025-32; married-filing-jointly Additional Medicare threshold of $250,000 is a separate, unindexed statutory figure). Texas's married-filing-jointly and head-of-household figures have been independently verified against the source above.
Self-employment tax uses the statutory 15.3% rate (12.4% Social Security + 2.9% Medicare) on 92.35% of net self-employment income, with half of the SE tax deducted from federal taxable income above-the-line — per IRS Schedule SE (Form 1040) instructions, IRC §1401 and §164(f), 2026 edition. The 20% Qualified Business Income deduction (IRC §199A) is not modeled — it phases out by income and business type and is too state/entity-dependent to compute generically. This assumes the self-employment income is your only earnings for the year; if you also have W-2 wages, the Social Security wage-base cap and Additional Medicare threshold are actually based on your combined earnings, so this will overstate SE tax if you have significant wage income too.
This is an estimate based on standard single-filer federal and FICA calculations. Actual withholding may differ based on your W-4 elections, pre-tax deductions (401k, health insurance), and other factors.
Guideline version: 2026-TX-v1 · Effective: 2019-01-01 · Last verified: 2026-07-26