1099 Tax Calculator for Real Estate Agents in Texas
A real estate agent billing $85,000 a year with$21,000 of business expenses should set aside16.5% of gross income — that is $14,000 a year, or$3,500 per quarterly payment. Here is the breakdown, and whatTexas specifically requires.
Real Estate Agent Tax Estimator (2026)
Location: Texas • State Tax:0% (No State Income Tax)
W-2 tax itself is withheld by your employer. Entering wages only moves your 1099 income into its correct, higher bracket and accounts for the Social Security wage base your paycheck already used.
Tailored Write-Offs for Real Estate Agent
Click to toggle deductionsCheck off typical business expenses to automatically update your deduction total:
Total annual tax divided across the 4 IRS estimated payment vouchers.
Hold back from every payout
Gross minus deductible expenses
Texas constitution forbids personal income tax. You owe $0 in state income taxes.
IRS Form 1040-ES Quarterly Payment Voucher Schedule
Deadlines for 2026 estimated tax payments to avoid IRS underpayment penalties.
Texas 1099 Tax Rules
- Rate applied here
- 0% (No State Income Tax)
- Statutory bracket
- No income tax
The Texas Constitution prohibits a personal income tax without a voter-approved amendment, and no such amendment has ever passed. Texas is therefore the strongest constitutional no-tax case in the country: unlike states that could in principle add a rate, a Texas income tax would require repealing a constitutional protection. Texas funds itself with a comparatively high sales tax.
Local taxes: No local income tax in Texas, including Houston, Dallas, and Austin. Texas cities and counties may levy property tax and, in limited cases, an occupation tax on gross receipts, but never an income tax on earnings.
State revenue agency: Texas Comptroller of Public Accounts.No state estimated tax vouchers exist. A Texas-based 1099 contractor owes federal tax only, paid through Form 1040-ES on the standard four dates. The Texas Comptroller of Public Accounts administers no individual income tax at all.
Texas has no personal income tax.Every dollar you set aside goes to the IRS. You can still deduct business expenses against federal income, so write-offs remain worth their full value here.
Tax Strategy for real estate agents
Commission-based agents have an unusually clear deduction set: the vehicle used to show property, marketing materials and photography, brokerage fees, and licensing and continuing-education costs. Mileage is the largest single item for an agent who drives to listings daily, and the standard mileage rate is usually more favourable than actual expenses for a vehicle that is also used personally.
Commission income is the most volatile of any role in this catalogue: a single closing can represent a year of income. Never set a quarterly voucher from a good quarter alone. Use the trailing two-year average, and remember the IRS compares your payments against a year that may have had a closing you did not repeat.
To avoid underpayment penalties, pay at least 90% of your current-year tax, or 100% of last year's total tax — 110% if your prior-year AGI was above $150,000.
Write-offs for real estate agents in Texas
At this role's typical income the combined federal, FICA and Texas rate defers21.9% of every deducted dollar.
| Deduction | Typical amount | Est. tax saved |
|---|---|---|
| Client Tours & Property MileageDriving clients to showings, open houses, and title closings. | $8,200 | +$1,794 |
| MLS Dues & Realtor Association FeesLocal Board of Realtors, NAR membership, and Multiple Listing Service access. | $1,850 | +$405 |
| Listing Photography & Virtual ToursProfessional drone photos, 3D Matterport tours, and floor plans. | $2,400 | +$525 |
| Brokerage Desk Fees & Errors InsuranceBroker split, office desk rental, and E&O liability insurance premiums. | $3,600 | +$788 |
| Yard Signs & Marketing PrintFor Sale yard signs, directional riders, and glossy property brochures. | $1,200 | +$263 |
| If you claimed all of the above | $17,250 | +$3,774 |
Claiming $17,250 of those write-offs drops the quarterly payment from $3,500 to$2,410 and your set-aside rate from 16.5% to11.3%. Amounts are typical, not guaranteed — track your own costs and keep receipts, because the IRS requires substantiation for every deduction you claim.
Frequently Asked Questions: Real Estate Agents Taxes in Texas
Set-aside rates, deadlines and deductions for Texas, tax year 2026.
How much should a real estate agent set aside for quarterly taxes in Texas?
Set aside about 16.5% of everything you bill — 16.5% of $85,000 in gross income is $14,000 a year, or $3,500 per quarter. That total covers self-employment tax (15.3% on 92.35% of net profit), federal income tax on the remainder after your standard deduction, and Texas adds no state income tax on top of that. The percentage is measured against gross income rather than net profit because that is the number that actually reaches your bank account and the number you can safely divert.
When are 1099 quarterly taxes due in Texas for 2026?
IRS Form 1040-ES estimated payments for 2026 are due April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15, 2027 (Q4). Texas has no personal income tax, so there is no state quarterly voucher to file and every estimated payment goes to the IRS.
What expenses can a real estate agent write off in Texas?
Common write-offs for real estate agents include client tours & property mileage, mls dues & realtor association fees, listing photography & virtual tours, brokerage desk fees & errors insurance, yard signs & marketing print. Because Texas has no state income tax, a deduction only reduces your federal taxable income, so it is worth exactly its face value.