Amazon Flex Taxes in Dallas, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Dallas, Texas

Navigating the bustling streets of Dallas as an Amazon Flex driver offers flexibility, but it also introduces unique tax considerations. Delivering packages from Uptown to Oak Cliff requires understanding how the IRS and the State of Texas treat independent contractor income.

As an Amazon Flex driver, you are classified as an independent contractor, meaning you’re self-employed. This necessitates reporting your earnings on Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). Crucially, it also means you are responsible for paying self-employment taxes, covering both Social Security and Medicare, 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) 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 is vital. Texas does not have a specific classification for "gig workers" beyond standard business entities. Therefore, your Amazon Flex income is treated as business income. This means maintaining detailed records of all income and expenses is paramount. Dallas, with its extensive highway system and varying parking regulations, can present unique expense opportunities – keep receipts for any parking fees incurred while actively delivering. Demand fluctuates significantly in Dallas, particularly around holidays and major events, so tracking earnings throughout the year is essential for accurate tax planning. Be mindful of local ordinances regarding commercial vehicle operation within the city limits, as these could potentially impact deductible expenses. The Texas Comptroller of Public Accounts provides comprehensive information on state taxes and business regulations: Texas Comptroller.

Top Tax Deductions for Dallas, Texas Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents per mile. With relatively lower gas prices in Texas compared to states like California, the standard mileage rate is often the most advantageous method for Amazon Flex drivers in the Dallas area.
• Tolls & Parking: Dallas utilizes the TxTag system for toll roads. All toll expenses incurred while actively delivering are deductible. Keep detailed records of all TxTag charges and parking receipts.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes (e.g., navigation, communicating with Amazon Flex) is deductible.
• 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 largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon and other delivery platforms do not withhold these taxes from your earnings. You are responsible for calculating and paying this tax, typically through estimated quarterly tax payments to the IRS, to avoid penalties. Earnings over $400 are subject to this tax.