Work & Income · State Guide

Salary vs contractor in Texas

How Texas's tax environment affects the W2 vs 1099 comparison.

Texas tax context

Texas has no state income tax, which simplifies the comparison — all tax differences come from federal SE tax and benefit values. This makes Texas one of the more contractor-friendly states from a pure tax perspective, since the SE tax disadvantage isn't amplified by additional state income tax.

Run the comparison with Texas tax rates

Use 0% as your state income tax rate in the calculator.

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