Self-Employment

1099 Tax Calculator

Freelance, gig, or self-employed? Estimate your 2026 self-employment tax, income tax, and quarterly payments — so there are no April surprises.

1099 & Self-Employment Tax Calculator

Enter your net self-employment income (business profit after expenses). We estimate 2026 self-employment tax, federal and state income tax, and your quarterly payments.

Estimate for planning only. Assumes the standard deduction and no other income, credits, or the QBI deduction (which can lower income tax further). Not tax advice.

Why 1099 Taxes Are Higher

As a W-2 employee, your employer pays half of your Social Security and Medicare (FICA). When you’re self-employed, you pay both halves — that’s the 15.3% self-employment tax (12.4% Social Security up to the $184,500 wage base, plus 2.9% Medicare with no cap). It’s on top of regular federal and state income tax.

How the Calculation Works

Set Aside for Quarterly Taxes

The IRS expects self-employed people to pay taxes quarterly (roughly April, June, September, and January) rather than once a year. The calculator’s “quarterly estimated payment” is your total tax ÷ 4 — a solid amount to set aside from each quarter’s income. A common rule of thumb is to bank 25–30% of every 1099 payment.

Deductions matter. This estimate uses the standard deduction and skips the 20% Qualified Business Income (QBI) deduction, which many self-employed filers qualify for and which lowers income tax further. Track your business expenses — they reduce the net income this calculator starts from.

Compare with a W-2 salary →

Frequently Asked Questions

How much should I set aside for 1099 taxes?

A common rule is 25–30% of your net self-employment income to cover the 15.3% self-employment tax plus federal and state income tax. The calculator gives your exact estimate and a quarterly payment amount.

What is the self-employment tax rate for 2026?

15.3% — 12.4% for Social Security (on net earnings up to the $184,500 wage base) and 2.9% for Medicare (no cap), with an extra 0.9% Medicare over $200,000 for single filers.

Do I pay income tax on top of self-employment tax?

Yes. Self-employment tax funds Social Security and Medicare; you still owe regular federal (and usually state) income tax on your profit. Half of the SE tax is deductible against income.

When are quarterly taxes due?

Estimated taxes are generally due mid-April, mid-June, mid-September, and mid-January for the prior quarters. Paying quarterly avoids IRS underpayment penalties.

Related

W-2 salary calculator · What is FICA tax · How much tax is taken out · 2026 tax cheat sheet

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