Home › Retirement › Texas
Retirement options for gig workers in Texas (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Texas does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Texas, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Texas had 3,336,180 returns with Schedule C income, 24.4% of 13,671,450 returns in the state. 2,120,530 returns paid self-employment tax. 54,130 of those claimed the self-employed retirement-plan deduction, a rate of 2.6%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Texas self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Texas income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Texas income tax on 1099 profit
Texas has no personal income tax. Article VIII, section 24-a of the Texas Constitution bans a tax on an individual's net income, including a share of partnership income. A 2025 amendment, section 24-b, also bans a tax on an individual's capital gains. Federal income tax and self-employment tax still apply.
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Texas cities are linked below and from Texas local taxes.
The rideshare statute is not a savings plan
Texas has the largest Schedule C count in this IRS table among states the extract marks as having no state program: 3,336,180 returns. Houston, Dallas, Austin and San Antonio are inside that count. Occupations Code section 2402.114, from H.B. 100 (2017), says a rideshare driver is an independent contractor for all purposes when four conditions are met, including a written agreement and no required log-in hours. The statute never creates an account.
A driver who also has a W-2 job keeps that employer plan for the W-2 wages. The 1099 profit is a separate contribution question, answered with an IRA, a SEP, or a Solo 401(k) under the federal limits below.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Texas has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
Houston · San Antonio · Dallas · Fort Worth · Austin · El Paso · Arlington · Corpus Christi · Plano · Lubbock · Laredo · Irving · Garland · Frisco · McKinney
Uber drivers · Lyft drivers · DoorDash drivers · Instacart shoppers · Amazon Flex drivers
Questions
Does Texas run an auto-IRA for gig workers?
No. Texas has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Texas tax 1099 income?
Texas has no personal income tax. Article VIII, section 24-a of the Texas Constitution bans a tax on an individual's net income, including a share of partnership income. A 2025 amendment, section 24-b, also bans a tax on an individual's capital gains. Federal income tax and self-employment tax still apply.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
Does the Texas rideshare law create a retirement plan?
No. Occupations Code section 2402.114, enacted by H.B. 100 in 2017, treats a rideshare driver as an independent contractor for all purposes when the company does not set log-in hours, does not limit other apps or territory, does not restrict other work, and both sides agree in writing. The statute does not set up a state retirement account.
Can a Texas gig worker save from 1099 income while a W-2 job has a 401(k)?
The W-2 plan covers that paycheck. 1099 profit can go into an IRA, and into a Solo 401(k) or SEP when the worker qualifies. The 2026 IRA limit is $7,500, shared across IRAs. Gigaverse's Solo 401(k), SEP and PRActicle Roth IRA are waitlist only.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Texas, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.