1099 Tax Calculator

Figure out exactly how much of your 1099 income to set aside for taxes. This calculator adds up your self-employment tax, federal income tax, and state income tax - after business expenses, the QBI deduction, health insurance, and retirement - then shows a quarterly estimate. Figures are for US tax year 2026.

How 1099 taxes are calculated

As a 1099 contractor, no employer withholds tax for you, so it helps to know your total bill up front. Your 1099 tax is the sum of three pieces:

Self-employment tax - 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, with the Social Security portion capping at $184,500 for 2026.
Federal income tax - the 2026 marginal brackets (10% to 37%) applied to your taxable income after the standard deduction and the QBI deduction.
State income tax - your state's effective rate applied to taxable income (nine states have no income tax).

Deductions that lower your bill

Business expenses reduce your net profit directly - the single biggest lever for most freelancers.
Half of your SE tax is deductible above the line.
The QBI deduction can remove up to 20% of qualified business income, subject to the 2026 service-business phase-out.
Self-employed health insurance and retirement contributions (SEP-IRA or Solo 401(k)) are deductible above the line.

A rule of thumb for what to set aside

Many freelancers aim to set aside 25-35% of their net profit for taxes. Lower earners and those in no-income-tax states land near the bottom of that range; higher earners and those in high-tax states land at the top. Rather than guess, use the headline figure above - it's tuned to your income, filing status, deductions, and state - and move that share into a separate account each time you're paid.

Worked example: setting aside tax on 1099 income

A solo consultant with $80,000 of client payments and $16,000 of business expenses should not save tax from the gross number. The useful number is net profit.

1099 income: $80,000 - gross client payments before expenses.
Business expenses: $16,000 - software, subcontractors, home office, mileage, and other ordinary costs.
Net profit: $64,000 - the starting point for self-employment tax and income tax.
Set-aside habit: Move 25-35% of profit to a tax account - then refine the percentage using the calculator result.

This page estimates the set-aside percentage from your own inputs; the example shows the habit: calculate profit first, then move tax money before using the rest.

When a 1099 estimate goes wrong

Most surprises come from missing inputs rather than the formula itself.

Saving from gross income instead of profit

Tax is based on net profit after business expenses. Track expenses first, then set aside a percentage of profit.

Forgetting state tax

Self-employment and federal tax are only part of the bill. State tax can move the set-aside percentage meaningfully.

Waiting until April

The IRS expects tax as income is earned. Quarterly payments prevent a large surprise and may reduce penalty risk.

Treating QBI as guaranteed

The QBI deduction can phase out or be limited depending on income and business type. Treat it as an estimate.

After you calculate your 1099 tax

Use the result as a cash-flow plan, not just a once-a-year tax number.

Separate tax money after every payment

Move the calculator's set-aside percentage into a dedicated savings account before spending the rest.
Keep expense proof

Save receipts, mileage logs, bank records, and contractor payments so deductions survive review.
Schedule quarterly payments

Use the quarterly estimate as a payment plan instead of waiting for annual filing.
Recalculate after a big client win

Higher profit can change federal brackets, QBI limits, state tax, and safe-harbor choices.

Official sources used for this calculator

Tax rules change, so calculator pages need visible sources a reviewer can audit.

IRS: Self-employment tax
Explains Social Security and Medicare taxes for people who work for themselves.
IRS: Estimated taxes
Explains who pays estimated tax and the pay-as-you-go system.
IRS: About Schedule SE
Official form page for calculating self-employment tax.
Social Security Administration: Contribution and benefit base
Source for the annual Social Security wage base used in SE tax calculations.

Plan your quarterly payments

Break your annual bill into the four estimated payments the IRS expects - and never get surprised at tax time.

Open the quarterly tax calculator

Self-Employment Tax Calculator

Break down the 15.3% SE tax on your net profit.

Quarterly Tax Calculator

Estimate your quarterly estimated-tax payments.

1099 vs W-2 Calculator

Compare contract pay to a salary on a true, after-tax basis.

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Create and download a professional invoice in seconds.