Web Developer Taxes in Houston, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Houston, Texas

The demand for skilled web developers in Houston is consistently high, fueled by the city’s diverse economy and thriving tech scene – but navigating taxes as a freelancer requires careful planning. As a self-employed web developer, understanding your federal and state tax obligations is crucial for financial health.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions. Failure to properly report income and pay taxes can result in penalties and interest.

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 building websites for clients in Houston, it's a key part of the state's business tax structure. Even without state income tax, web developers operating as sole proprietorships or single-member LLCs are still responsible for federal income and self-employment taxes.

Texas does not have a state equivalent to the federal Schedule C. Instead, income flows directly to your federal return. However, it’s important to maintain meticulous records of all income and expenses, as the IRS may request documentation. Consider the practicalities of working in Houston; parking costs for client meetings, even infrequent ones, can add up and should be factored into your business expense planning. While Houston doesn’t have specific city-level taxes impacting gig workers beyond standard sales tax if you sell tangible goods, staying informed about any potential changes to local business regulations is always advisable. For comprehensive information on Texas taxes and business regulations, visit the Texas Comptroller of Public Accounts website.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: This is a significant deduction for many web developers. To qualify, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is only used for work – no dual-purpose rooms. “Regular use” means you use it consistently for your web development 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 essential software subscriptions (like Adobe Creative Cloud, web hosting, or code editors) are generally deductible as business expenses. If an item has a useful life of more than one year (like a computer), you may need to depreciate it over several years.
• 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. However, you can claim mileage for occasional client meetings in Houston, 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 is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income.