No state income tax helps — but the car and the IRS still take their cut. See what a Texas driver actually keeps.
Gross hourly
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Vehicle cost (72.5¢/mi)
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Self-employment tax
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Est. federal income tax
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TX state income tax
$0 — none!
Your TRUE hourly pay
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Tracking every mile is worth real money
At 72.5¢/mi, a driver logging 15,000 miles/year deducts $10,875 from taxable income. A mileage tracking app does it automatically. Compare mileage trackers →
How this calculator works
Your true hourly pay is what's left after costs the apps never show. We subtract vehicle cost at the 2026 IRS standard mileage rate of 72.5¢ per mile, then self-employment tax (15.3% on 92.35% of profit) and federal income tax at your bracket. Texas has no state income tax, so the state line in your results is $0 — a real advantage worth roughly 4–9% of profit compared with driving the same week in California or New York.
The Texas catch: miles
Texas metros sprawl. Dallas–Fort Worth, Houston, and San Antonio routinely produce more miles per dollar earned than dense coastal cities, and every extra mile costs you 72.5¢ in real vehicle cost. Watch the per-mile readout above: $2/mile earned is strong; under $1/mile means your car is eating most of your pay.
No safety net, pure market
Texas has no Prop-22-style minimum guarantee for app drivers — your pay is exactly what the offers add up to. That makes declining bad offers (long distance, low payout) the single highest-leverage habit for Texas drivers.
Gross $15–25/hour is common in DFW, Houston, Austin, and San Antonio, but after vehicle costs (72.5¢/mi) and 15.3% self-employment tax, realistic net is often $9–16/hour. Sprawling metros mean more miles per dollar, which drags net pay down.
Do Texas gig drivers pay state income tax?
No. Texas has no state income tax, so gig drivers keep more than drivers earning the same gross in states like California or New York. You still owe federal income tax and 15.3% self-employment tax if net profit is $400+.
Is there a minimum pay law for gig drivers in Texas?
No. Texas has no state minimum-pay guarantee for app-based drivers, so per-offer judgment — especially declining low dollar-per-mile offers — matters more than in states with pay floors.
Estimates for educational purposes only — not tax, legal, or financial advice. State rules and rates change; consult a tax professional about your situation.