Texas Side Hustle Tax Guide 2025
Everything side hustlers in Texas (TX) need to know about taxes, deductions, and quarterly payments.
Texas Tax Overview
No state income tax. Franchise tax may apply to businesses with over $2.47M in revenue.
Since Texas has no state income tax, your side hustle income is only subject to federal income tax (10–37%) and SE tax (15.3%).
Self-Employment Tax
Every side hustler pays 15.3% SE tax on net earnings — 12.4% Social Security + 2.9% Medicare. You can deduct half from adjusted gross income.
Quarterly Estimated Payments
Federal quarterly payments required if you owe $1,000+ (Form 1040-ES). Due: April 15, June 15, September 15, January 15.
Common Deductions
- Home office ($5/sq ft, max 300 sq ft)
- Equipment and software (Section 179)
- Vehicle (67¢/mile in 2024)
- Health insurance (self-employed deduction)
- Half of SE tax
- Retirement (SEP-IRA or Solo 401(k))
FAQ
Does Texas tax side hustle income?
No state income tax. Federal SE tax (15.3%) always applies.
Do I need quarterly payments?
Yes, federal. No state payments needed.
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