TaskRabbit Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Texas

From furniture assembly in Austin to moving help in Houston, being a TaskRabbit in Texas offers flexibility and earning potential. However, that income comes with tax responsibilities. As an independent contractor, you're considered self-employed by the IRS, meaning you're responsible for reporting all earnings and paying applicable taxes.

The IRS requires TaskRabbits to report income and expenses on Schedule C (Profit or Loss from Business) when filing your federal income tax return (Form 1040). Crucially, this self-employment income is also subject to self-employment tax, covering both Social Security and Medicare contributions. Platforms like TaskRabbit do not withhold these taxes, so proactive tax planning is essential.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. This means you won’t owe state income tax on your TaskRabbit earnings, a significant advantage compared to many other states. However, Texas does have a business tax structure, and while it rarely impacts individual TaskRabbits, it’s important to be aware of the Texas Franchise Tax. This tax applies to businesses with revenue exceeding $1.2 million, a threshold most solo gig workers won’t reach. Even if your revenue is below this amount, understanding the state’s business tax landscape is prudent. Texas also doesn’t have a specific classification for “gig workers,” so you’re generally treated as a sole proprietor for tax purposes. Keep meticulous records of all income and expenses, as the IRS can audit self-employed individuals. Furthermore, while there's no state income tax, sales tax could apply depending on the specific tasks performed. For example, if you're selling a physical product as part of a Task, you may need to collect and remit sales tax. Consulting with a tax professional familiar with Texas regulations is always recommended to ensure full compliance. For more information on Texas taxes, visit the Texas Comptroller of Public Accounts website.

Top Tax Deductions for Texas Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. With generally lower gas prices in Texas, the standard mileage rate often provides a substantial deduction, simplifying record-keeping compared to tracking actual expenses.
• Tolls & Parking: Texas has extensive toll road systems, including TxTag and EZ TAG. Keep detailed records of all toll expenses and parking fees incurred while performing TaskRabbit work; these are deductible.
• Phone & Data Plan: If you use your phone for scheduling tasks, communicating with clients, or navigating, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Don't forget smaller expenses like car cleaning supplies, phone mounts for navigation, or insulated bags for food delivery tasks. These contribute to your overall business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil, or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes, which are typically withheld from employee paychecks. As a self-employed TaskRabbit, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. Remember to factor this into your tax planning throughout the year to avoid a large tax bill when filing.