Texas · tax year 2026 · updated October 12, 2026
Texas 1099 rules for 2026: no state income tax, federal $2,000 floor
Texas does not have a personal income tax, so there is no Texas income tax return for your Schedule C profit. For 2026 the 1099 questions are federal: a client generally sends a 1099-NEC once they have paid you $2,000.
No Texas personal income tax.
The Texas Comptroller states that Texas does not have a personal income tax, so there is no Texas return for your Schedule C profit.
The federal 1099-NEC floor is $2,000 for 2026.
For payments made in 2026 the IRS reporting threshold for Form 1099-NEC is $2,000, up from $600.
Payment apps follow the federal 1099-K test.
Payment apps and online marketplaces report on Form 1099-K when payments for goods or services exceed $20,000 in more than 200 transactions. Card processors report card payments with no dollar floor.
Federal tax still applies.
No state income tax does not mean no tax. The income goes on Schedule C and self-employment tax applies whether or not a form arrives.
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Open the checkerWhatever the paperwork does, the income is reportable. Here is the full explanation of why a missing 1099 changes nothing.
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Quote vs cost saved per job, plus job log, expenses, mileage, estimated tax, and a year-end packet. Not tax advice.