What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Food and supply costs tracked as cost of goods sold
- Sales tax you collected kept out of your taxable income
- Truck and kitchen equipment depreciated or written off
- Permit, commissary and event fees deducted
Deductions food truck owners often miss
- Houston Mobile Food Unit medallion and inspection fees
- Commissary rent, propane and ice
- Food, packaging and paper goods
- Generator, fryers, refrigeration and the truck itself
- Event and market booth fees
- POS and card processing fees
Houston and Texas rules that apply to you
- Houston medallion: the Houston Health Department's Mobile Food Unit medallion costs $258 a year, plus a $112.57 inspection fee and a $33.56 admin fee (current fee schedule). Outside city limits, county health departments issue their own permits. All of it is deductible.
- Sales tax on food: prepared food is taxable in Texas, 8.25% in Houston, reported to the Comptroller. Sales tax you collect and send in isn't your income, but it has to be reported the right way on your return.
- Business equipment tax (Harris, Fort Bend and other appraisal districts): starting in 2026, Texas exempts the first $125,000 of business personal property, up from $2,500. If your equipment is worth more, the rendition is due to your appraisal district (HCAD in Harris County) by April 15. Below that, check your district's 2026 instructions, since some ask for a one-time filing to confirm the exemption.
New for 2026 returns (filed in 2027)
- Equipment write-offs: 100% bonus depreciation is back for equipment bought after January 19, 2025, so a qualifying tool, trailer or vehicle can often be deducted in the year you buy it.
- 1099 forms: clients and companies now send a 1099-NEC only when they pay you $2,000 or more in 2026 (it was $600). Payment apps send a 1099-K only above $20,000 and 200 payments. All of your income is still taxable, form or no form.
What to bring
- POS reports (Square, Toast, Clover) with sales and tax collected
- Texas sales tax returns you filed
- Food and supply receipts, or supplier statements
- Medallion, permit, commissary and event fee receipts
- Truck and equipment purchase papers
Common questions
Is the sales tax I collect part of my income?
No, as long as you report it correctly. It's either left out of gross receipts or included and then deducted. Mixing it up is one of the most common food truck mistakes.
Can I deduct food I eat from the truck?
No. Only food you sell, give as samples or throw out as spoilage counts as a business cost. Your own meals are personal.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: Houston Permitting Center: Mobile Food Unit Medallion ↗ · Texas Comptroller: taxable services ↗ · Fort Bend CAD: 2026 business property exemption ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
Other trades I help: