Graphic Designer Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Graphic Designer in Texas

From branding for Austin startups to marketing materials for Houston businesses, Texas graphic designers are in high demand. However, navigating the tax landscape as a self-employed creative requires careful planning.

As a graphic designer operating as an independent contractor in Texas, the IRS considers your earnings self-employment income. This means you’re responsible for reporting all income and paying both income tax and self-employment tax. Income is reported on Schedule C (Profit or Loss from Business) when filing your federal income tax return (Form 1040). Remember, if net earnings from self-employment exceed $400, self-employment tax applies.

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. Most graphic designers operating as sole proprietorships or single-member LLCs will not be subject to the Franchise Tax. However, it’s crucial to understand that Texas does require businesses to report and potentially pay taxes on gross receipts, even without a state income tax. This is particularly relevant if your business is structured as a corporation or multi-member LLC. Furthermore, while Texas doesn’t have a state income tax, it does collect sales tax on certain services, though graphic design services are generally exempt. Staying informed about potential changes to these regulations is vital. The Texas Comptroller of Public Accounts is the primary resource for all state tax information and compliance. It's recommended to regularly check their website for updates and guidance specific to your business structure. Proper record-keeping is essential, even in a state without income tax, to accurately report any applicable taxes and avoid potential penalties.

You can find more information on the Texas Comptroller's website: https://comptroller.texas.gov/

Key Tax Deductions for Home-Based Graphic Designers

• Home Office Deduction: To qualify, the space must be used exclusively and regularly for your graphic design business. “Exclusive use” means that portion of your home is used solely for work – no using the dining room table as an office and then for dinner. “Regular use” means you use the space consistently for business activities. 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, tablets, cameras, printers, and essential software like Adobe Creative Cloud subscriptions are deductible business expenses. If an item has a useful life of more than one year (like a computer), it’s typically depreciated over several years, rather than deducted in full in the year of purchase.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Keep detailed records of how you use these services to justify your deduction.

Note on Mileage: As a home-based worker, mileage is not a primary deduction, but can be claimed for occasional client meetings, 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 for 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.