Amazon Flex Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Texas

Navigating the bustling streets of Dallas, Houston, or San Antonio as an Amazon Flex driver offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires all Amazon Flex drivers to report their earnings on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Flex earnings.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million in revenue) that rarely applies to solo gig workers, it's a key part of the state's business tax structure. Even without state income tax, accurate record-keeping of your Amazon Flex income and expenses is vital for federal compliance. Texas does not have a specific classification for "gig workers" beyond standard business entities. Therefore, as an Amazon Flex driver, you are generally considered a sole proprietor for tax purposes. This means your business income is reported on your personal tax return. It's important to understand that while Texas doesn't tax income, it does require businesses to maintain proper records and potentially file reports, even if no tax is due. Staying informed about Texas business regulations is essential. The Texas Comptroller of Public Accounts provides comprehensive resources for businesses, including information on franchise tax and other relevant regulations.

For more information, visit the Texas Comptroller website.

Top Tax Deductions for Texas Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents per mile. With generally lower gas prices in Texas compared to other states, the standard mileage rate often provides a significant tax benefit for Amazon Flex drivers.
• Tolls & Parking: Texas has extensive toll road systems, like those around Austin and Dallas. Keep detailed records of all toll expenses and parking fees incurred while actively delivering for Amazon Flex.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes is deductible. Carefully track business usage to justify the deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, and insulated hot bags used specifically for deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the greater tax savings.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments throughout the year to avoid penalties.