Texas freelancers: estimating self-employment tax
How the 15.3% self-employment tax works for freelancers in Texas, the 92.35% rule, the wage base and the deduction for half of it.
Key facts
| Place | Texas |
|---|---|
| Sales tax | State sales tax |
| Standard rate on file | 6.25% |
| Multiply net price by | 1.0625 |
| Tax share of a gross price | 5.88% |
| Currency | USD |
15.3% on 92.35% of profit
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%). It applies to 92.35% of net self-employment profit. Social Security stops at the annual wage base, which the calculator sets to $184,500 for 2026; Medicare has no cap.
Worked example
Here is the calculation with sample figures. Change any number in the Texas Self-Employment Tax Calculator to run your own.
| Profit | $125,000.00 |
| Social Security wage base | $184,500.00 |
| Self-employment tax | $17,661.94 |
|---|---|
| Deduction | $8,830.97 |
Half is deductible
You can deduct half of your self-employment tax when calculating income tax. The calculator shows that figure.
Plus income tax
Self-employment tax comes on top of federal and any Texas income tax, so set aside money from each payment and make quarterly estimated payments.
Quick reference at 6.25%
Common amounts in Texas, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| $10.00 | $0.62 | $10.62 | $9.41 |
| $50.00 | $3.12 | $53.12 | $47.06 |
| $100.00 | $6.25 | $106.25 | $94.12 |
| $250.00 | $15.62 | $265.62 | $235.29 |
| $500.00 | $31.25 | $531.25 | $470.59 |
| $1,000.00 | $62.50 | $1,062.50 | $941.18 |
| $5,000.00 | $312.50 | $5,312.50 | $4,705.88 |
How Texas compares
Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 6.25% |
|---|---|---|
| South Carolina | 6% | lower |
| South Dakota | 4.2% | lower |
| Tennessee | 7% | higher |
| Utah | 6.1% | lower |
| Vermont | 6% | lower |
| Virginia | 5.3% | lower |
Using the calculator step by step
- Open the Texas Self-Employment Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 6.25%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Net amount
- The amount before tax is added. On an invoice it is the figure the tax is calculated on.
- Exempt supply
- A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.
- Withholding
- Tax deducted at source, by an employer or payer, before the money reaches you.
- Reduced rate
- A lower rate that applies to specific categories, often essentials such as food, medicine or books.
- Deduction
- An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.
Common mistakes to avoid
- Forgetting quarterly estimated payments.
- Not deducting half of the self-employment tax.
Run your own numbers. The Texas Self-Employment Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the self-employment tax rate?
15.3% on 92.35% of net earnings, with Social Security capped at the wage base.
Do Texas freelancers pay state tax too?
Self-employment tax is federal; state income tax rules for Texas apply separately.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.