Estimate your quarterly taxes as a self-employed worker in Austin for 2026, including self-employment tax, federal income tax, with no Texas state income tax.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Austin freelancers pay federal self-employment tax and federal income tax, but Texas has no state income tax. Texas has no state income tax, a provision enshrined in the state constitution. The state generates revenue primarily through sales tax (6.25% + local), property taxes, and oil and gas production taxes.
| Tax Component | Rate / Detail (2026) |
|---|---|
| Self-Employment Tax | 15.3% on 92.35% of net profit |
| Social Security portion | 12.4% on first $176,100 |
| Medicare portion | 2.9% (no cap) |
| SE Tax Deduction | Deduct half of SE tax from income |
| Federal Standard Deduction (Single) | $15,000 |
| Texas State Income Tax | No state income tax |
| Austin Local Income Tax | None |
| Quarterly Due Dates | April 15, June 16, September 15, January 15 |
Austin is the Texas state capital and a fast-growing technology center nicknamed Silicon Hills, home to Tesla, Oracle, and a wave of relocated tech firms, the University of Texas, and a live-music and startup culture that has driven housing costs sharply higher.
| Local Metric | Austin (2026 estimate) |
|---|---|
| Metro population | 975,000 |
| County / jurisdiction | Travis County |
| Cost of living index (US avg = 100) | 119 |
| MIT living wage, single adult | $21.70/hour |
| MIT living wage, one earner supporting a family of four | $43.10/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,500/month |
| Average rent, 2-bedroom | $1,900/month |
| Median home price | $550,000 |
| Median household income | $91,000/year |
| Combined sales tax rate | 8.25% |
| Effective property tax rate | 1.8% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
If you expect to owe at least $1,000 in federal tax, you generally must pay quarterly. This covers freelancers, contractors, sole proprietors, and LLC members in Austin. Texas has no state income tax, so only federal estimated payments apply.
Federal estimated taxes are due April 15, June 16, September 15, and January 15. There are no state estimated payments in Texas.
A common rule is 25% to 35% of net profit. Without state income tax, Austin freelancers can often target the lower end of that range. Use the calculator above for your numbers.
The self-employment tax rate is 15.3% (12.4% Social Security up to $176,100 of net earnings, plus 2.9% Medicare with no cap). It applies to 92.35% of net profit, and half of it is deductible against income tax.
Austin does not levy a local personal income tax. Your estimated payments cover federal taxes only, since Texas has no state income tax.