Self-employment tax calculator for Texas
Texas takes nothing from earned income, so the only question is what the federal side costs you. Enter your numbers and get the share of every client payment to move aside.
of every payment you receive
Yours to spend, after tax and expenses
Roughly one quarterly payment. Due April 15, June 15, September 15, and January 15.
Why a percentage instead of a monthly amount
A fixed monthly transfer assumes a fixed monthly income. When a $12,000 month follows a $2,000 month, that assumption breaks and the money is usually gone before the transfer happens. Taking a percentage off each payment as it arrives scales on its own: a big month sets more aside, a slow month sets less, and nothing needs recalculating.
What the number includes
- Self-employment tax at 15.3% on 92.35% of your net profit, covering both halves of Social Security and Medicare. Social Security stops at $184,500 of earnings in 2026; Medicare does not stop, and an extra 0.9% applies above $200,000 single or $250,000 joint.
- Federal income tax on profit after the standard deduction ($16,100 single, $32,200 joint), the deductible half of self-employment tax, and the qualified business income deduction if you claim it.
- State income tax using your state's own 2026 brackets and standard deduction. Nine states take nothing from earned income.
- Local income tax if you enter a city or county rate.
Where it is deliberately rough
This estimates a set-aside rate, not your return. It uses standard deductions rather than itemized ones, ignores credits such as the child tax credit, treats state exemptions structured as credits as zero, and applies the business income deduction without the phase-out that begins above $201,775 of income. Head of household is not offered; those brackets are wider than single, so choosing single gives a slightly cautious number. The rate is rounded up to the whole percent, because holding back too much is a far cheaper mistake than holding back too little.
State brackets and deductions come from the Tax Foundation's 2026 state rate tables and reflect law as of early 2026. Several states have further rate cuts scheduled for later years, and a few adjust their brackets for inflation after publication.
What Texas takes
Texas levies no individual income tax, so your set-aside covers federal income tax and self-employment tax only. That does not mean the state is free of business taxes: the franchise tax applies to some entities above a revenue threshold, though most sole proprietors fall outside it.
Common questions
What percentage should a freelancer set aside for taxes?
There is no single number, because it depends on your profit, filing status, and state. For most self-employed people in a state with no income tax it lands between 18% and 25% of gross payments; in a high-tax state it can reach 30% or more. Self-employment tax alone is 15.3% on 92.35% of your net profit, and federal income tax sits on top of that.
Do I have to make quarterly estimated payments?
Generally yes, if you expect to owe at least $1,000 in federal tax after withholding and credits. The four 2026 deadlines are April 15, June 15, September 15, and January 15, 2027. The periods are not even three-month blocks: the September payment covers income earned from June 1 through August 31.
What happens if I underpay a quarter?
Missing a quarter does not create its own penalty, but it raises the odds of an underpayment penalty unless you meet a safe harbor. You are covered if you pay at least 90% of your current-year tax, or 100% of your prior-year tax. That second figure rises to 110% if your prior-year adjusted gross income was above $150,000. Any shortfall accrues interest at the IRS underpayment rate.
Where should I keep the tax money?
Somewhere that is not your spending account. A separate savings account works, and a high-yield one means the money earns something while it waits. The point is friction: money you can see in your everyday balance tends to get spent, so tax money should live where you do not check it daily.
Does the calculator include state taxes?
Yes. It uses each state's own 2026 brackets and standard deduction, and nine states take nothing from earned income. There is also a field for city or county tax, which applies in parts of Alabama, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania.
What if my income changes halfway through the year?
That is the point of using a percentage rather than a fixed monthly amount. The rate stays the same and the dollar amount moves with each payment, so a strong quarter sets more aside automatically. Re-run the calculator when your expected annual total shifts by a large margin, and adjust the rate from there.
Other states
Guides that go with this
Know what is actually yours
The calculator gives you a rate once. MoneyWorks Lite tracks the income it applies to: rolling 30-day totals, earning pace, and separate business and personal profiles so tax money never looks like spending money.