Web Developer Taxes in Dallas, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Dallas, Texas

The demand for skilled web developers in Dallas is booming, fueled by the city’s thriving tech scene and entrepreneurial spirit – but alongside building websites, understanding your tax obligations is crucial. As a self-employed web developer, you're considered an independent contractor by the IRS, meaning you're responsible for managing and reporting your own taxes.

The IRS requires all self-employed individuals to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this also triggers the requirement to pay self-employment tax, covering both Social Security and Medicare contributions. Remember to keep meticulous records of all income and expenses throughout the year to simplify the filing process.

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 like web developers operating in Dallas, it's a key part of the state's business tax structure. Even without state income tax, you are still responsible for federal income and self-employment taxes.

Texas does not have a state equivalent to the W-2 or 1099 forms for independent contractors. Your clients are not required to withhold state taxes from your payments. This means you’re responsible for estimating and paying your federal taxes throughout the year via quarterly estimated tax payments to avoid penalties. Consider the costs of doing business in Dallas – parking for client meetings, potential co-working space fees, and the general cost of living – when budgeting for your tax liability. The Texas Comptroller of Public Accounts provides comprehensive information on state taxes and business regulations. It’s a valuable resource for understanding your obligations as a self-employed individual.

Furthermore, while Texas doesn’t have a state income tax, it does collect sales tax on certain digital products and services. If your web development work includes creating or hosting digital products (like themes or plugins) that are sold to clients, you may need to collect and remit sales tax. Consult the Texas Comptroller’s website for specific guidance on sales tax requirements for digital goods and services. Texas Comptroller of Public Accounts

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: To qualify, the space must be used exclusively and regularly for your web development business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as offices! “Regular use” means you use it consistently for your business. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of computers, monitors, cameras (if used for client calls), and software subscriptions essential to your work (e.g., Adobe Creative Cloud, web hosting, code editors) are generally deductible. For larger purchases (like a new computer), you may need to depreciate the cost over several years.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. If you use your internet and phone 60% for business and 40% for personal use, you can deduct 60% of the expenses.

Note on Mileage: As a home-based worker, mileage is not a primary deduction. However, you can claim mileage for occasional client meetings in Dallas, trips to purchase supplies, or other work-related errands. Keep a detailed mileage log.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax covers your contributions to Social Security and Medicare. Employees have these taxes withheld from their paychecks, but as a self-employed individual, you’re responsible for paying both the employer and employee portions. You can deduct one-half of your self-employment tax from your gross income.