Amazon Flex Taxes in Houston, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Houston, Texas

Navigating the bustling streets of Houston as an Amazon Flex driver offers flexibility, but it also comes with tax responsibilities. Delivering packages from Energy Corridor to the Museum District requires more than just a reliable vehicle; it demands a solid understanding of how your earnings are taxed.

As an independent contractor for Amazon Flex, the IRS considers you self-employed. This means you’re responsible for reporting your income on Schedule C (Profit or Loss from Business) with your Form 1040, and paying self-employment taxes – covering both Social Security and Medicare – on any net earnings exceeding $400. Accurate record-keeping throughout the year is crucial for a smooth tax 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) that rarely applies to solo gig workers, it's a key part of the state's business tax structure. Amazon Flex drivers operating within Houston, and throughout Texas, won’t face state income tax on their earnings, but maintaining meticulous records of income and expenses is still vital for federal tax compliance. Houston’s expansive geography and traffic patterns can lead to significant mileage, making the standard mileage deduction particularly beneficial. Furthermore, parking costs, especially when making deliveries in denser areas like Downtown or the Galleria, are potentially deductible business expenses. It’s important to note that while Texas doesn’t have a state income tax, the Franchise Tax applies to entities earning over a certain revenue threshold, and while unlikely to affect most Flex drivers, understanding the state’s overall tax landscape is prudent. Resources are available through the Texas Comptroller of Public Accounts to help understand business tax obligations: Texas Comptroller. Keep in mind that even without state income tax, accurate federal reporting is paramount.

Top Tax Deductions for Houston, Texas Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents/mile. With Houston’s sprawling layout, the standard mileage rate is often a very advantageous option, given the relatively lower gas prices compared to states like California.
• Tolls & Parking: Houston utilizes the Harris County Toll Road Authority (HCTRA) and TxTag for electronic toll collection. Keep detailed records of all toll expenses and parking fees incurred while actively delivering packages.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes (tracking deliveries, communicating with Amazon, etc.) is deductible.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags for food deliveries are all potentially 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 covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Amazon Flex driver, you are responsible for paying these taxes directly to the IRS. This is calculated on your net earnings (income minus business expenses) exceeding $400.