Graphic Designer Taxes in Texas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Texas?

As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at the federal level, even though Texas has no state income tax. The IRS considers your graphic design work as self-employment income. You'll report this income and related expenses on Schedule C (Profit or Loss from Business), which is filed along with your Form 1040. This schedule allows you to deduct business expenses, ultimately determining your taxable profit.

Texas Specifics: Fortunately, Texas is one of the few states with no state income tax. This means you won’t need to file a state income tax return or pay state income tax on your graphic design earnings. However, you are still responsible for federal income and self-employment taxes.

Top Tax Write-offs for Graphic Designers

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud (Photoshop, Illustrator, InDesign), font subscriptions, stock photo services, and any other digital tools essential to your work are fully deductible.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, scanner, drawing tablet, and other equipment used for your graphic design business. For larger purchases (over $2,500), you may need to depreciate the cost over several years, or potentially utilize Section 179 deduction (consult a tax professional for details).
• Mileage & Vehicle Expenses: When you drive for client meetings, to purchase supplies, or for other business-related purposes, you can deduct your mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, etc.) if it results in a larger deduction. Keep a detailed mileage log!
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your graphic design business, you may be able to deduct expenses related to that space (rent/mortgage interest, utilities, insurance, etc.). There's a simplified method and a regular method for calculating this deduction.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised by self-employment tax. As an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed graphic designer, you're responsible for both the employer and employee portions, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall income tax liability. This tax applies to net earnings over $400.

Closing Tip for Texas Residents

Being a Texas resident offers the benefit of no state income tax, but diligent record-keeping is crucial for maximizing your federal deductions and accurately calculating your self-employment tax. Consider using accounting software or working with a qualified tax professional to ensure you're taking advantage of all available tax benefits. Don't hesitate to consult the IRS website (irs.gov) for the most up-to-date information and forms.