no texas state tax. still 15.3% self-employment.
favor is texas's hometown delivery app, owned by h-e-b. you keep more than in california — but the irs doesn't care which state you're in.
free 2026 favor tax calculator: self-employment tax, mileage deduction at 72.5¢/mile, federal & state brackets, and quarterly estimated payments for favor food delivery 1099 contractors.
your favor math
the form arrives. or it doesn't. you still owe.
favor pays a delivery fee + tips, with surge pricing during high demand. the model is closer to grubhub's than to doordash's — there's an hourly pay floor in some markets. for tax purposes it's standard 1099-NEC self-employment income.
texas residency saves you the state income tax — but not the self-employment tax, which is the same 15.3% everywhere. and many runners assume 'no state tax' means lower overall — but federal brackets don't care about your state, and the lack of state-level deductions can offset the benefit. plan for 25%, not 15%.
5 deductions specific to favor
everything from app-on to app-off, including positioning between offers. texas is big — miles add up fast.
extra coolers, ice packs, sun shades, dashboard fans. all the things that keep food deliverable in a 100°f car are deductible business expenses.
favor's app needs strong gps for fastest assignment. phone, mount, and plan percentage deduct.
tx toll roads (especially around dallas and austin) add up. track and deduct every one used for work.
in texas heat, ac repair isn't a luxury — it's a business expense if your vehicle is your gig.
favor runner in austin, 20 hrs/week, $11,500/year gross, 7,800 miles
no state tax = real money saved. mileage (7,800 × 72.5¢ = $5,655) is your biggest deduction. take-home after se + federal: ~$9,500. that's a 17% effective rate — way lower than a california favor runner would see.
favor, specifically
favor is texas-only. do i still file federal taxes?+
yes. federal income tax + se tax apply regardless of state. you skip the texas state filing — that's the only state-level benefit.
favor is owned by h-e-b — does that affect my taxes?+
no. you're contracted through favor delivery llc, not h-e-b. your 1099 comes from favor.
is favor's hourly pay guarantee the same as wages?+
no — it's still self-employment income reported on a 1099-NEC, even when it functions like an hourly floor. no withholding, no w-2.
what's different about delivering in austin vs dallas?+
tax-wise, nothing. logistics-wise, austin has worse traffic per mile but shorter distances; dallas has more highway and more tolls. log both kinds of miles.
also drive, sell, host, or stream elsewhere? combine on one schedule c.
your favor 1099 income gets added to every other gig you do for the year. one self-employment return covers all of it — and miles, fees, and home-office allocations may apply across platforms.