1099 Tax Calculator (2026)
Built & reviewed by Nandu Kannan · Overtime rules cited to primary statutes
Estimate what you'll owe on freelance or contractor income in 2026: self-employment tax (Social Security + Medicare), federal income tax with the optional QBI deduction, your effective rate, and the quarterly estimated payments that keep you penalty-free.
Quarterly estimated payments — $0 each
2026 estimates only — federal SE tax and income tax with the standard deduction; no state income tax included (see the paycheck calculator for state withholding). General information, not tax advice — confirm with a tax professional or IRS Form 1040-ES.
How 1099 taxes are calculated
Net earnings = profit × 92.35%
SE tax = 12.4% Social Security (up to $184,500) + 2.9% Medicare
Income tax = 2026 brackets on (profit − ½ SE tax − standard deduction − QBI)
Half of your SE tax is deductible, and most freelancers can also take
the 20% QBI deduction — both are built into the estimate above. Need
your quarterly schedule in detail? See the
quarterly tax calculator.
Anatomy of the 15.3% self-employment tax
| Component | Rate | Applies to (2026) |
|---|---|---|
| Social Security | 12.4% | Net earnings up to the $184,500 wage base |
| Medicare | 2.9% | All net earnings — no cap |
| Total SE tax | 15.3% | 92.35% of your profit (the 0.9235 factor mirrors the employer-half deduction W-2 workers get) |
A W-2 employee pays half of this (7.65%) and their employer pays the rest; as a 1099 worker you pay both halves — but you deduct half of it from your income before income tax is figured.
2026 quarterly estimated-tax due dates
Amounts shown are for the $80,000 worked example below — your own quarterly figure is simply your estimated full-year tax ÷ 4.
| Quarter | Due date | Payment ($80k example) |
|---|---|---|
| Q1 (Jan–Mar 2026) | April 15, 2026 | $4,162 |
| Q2 (Apr–May 2026) | June 15, 2026 | $4,162 |
| Q3 (Jun–Aug 2026) | September 15, 2026 | $4,162 |
| Q4 (Sep–Dec 2026) | January 15, 2027 | $4,162 |
Worked example: $80,000 of 1099 profit (single, QBI)
On $80,000 of net profit in 2026, a single filer taking the QBI deduction owes about $11,304 self-employment tax (on net earnings of $73,880) plus $5,344 federal income tax — a total of $16,647, or an effective rate of 20.8%. That leaves $63,353 after federal tax, and means setting aside roughly $4,162 each quarter. These figures are computed by the same engine as the calculator above — state income tax, if your state has one, comes on top.
Frequently asked questions
How much tax do I pay on 1099 income?
As a rough rule, set aside 25–35% of your net 1099 profit. You owe two layers of federal tax: self-employment tax of 15.3% on 92.35% of your profit (Social Security + Medicare), plus regular federal income tax on the rest after the standard deduction and any QBI deduction. The calculator above gives a 2026 estimate for your exact numbers — state income tax, if your state has one, comes on top.
What is self-employment tax (the 15.3%)?
Self-employment tax is the Social Security and Medicare tax that W-2 employers normally split with employees — as a 1099 worker you pay both halves. It is 12.4% Social Security (on net earnings up to the 2026 wage base of $184,500) plus 2.9% Medicare (no cap), with an extra 0.9% Additional Medicare tax above $200,000 ($250,000 married). You apply it to 92.35% of your profit, and you can deduct half of it from your income for income-tax purposes.
How do quarterly estimated payments work — and what if I skip them?
The IRS expects tax as you earn, so self-employed people prepay four times a year using Form 1040-ES: April 15, June 15, and September 15, 2026, then January 15, 2027 for the final quarter. If you underpay, the IRS charges an interest-based underpayment penalty even if you pay in full at filing. You are generally safe if you pay at least 90% of this year’s tax or 100% of last year’s (110% if your prior-year AGI was over $150,000).
Can I deduct business expenses from 1099 income?
Yes — you are taxed on net profit, not gross receipts. Ordinary and necessary business expenses (software, equipment, home office, business mileage, supplies, contract labor, health insurance premiums) come off on Schedule C before any tax is calculated. Enter your profit after expenses in the calculator; every dollar of legitimate expense saves you both SE tax and income tax.
How does 1099 take-home compare with W-2 for the same pay?
A 1099 worker takes home less from the same gross number because they pay both halves of Social Security and Medicare (15.3% instead of 7.65%) and get no employer benefits. A common rule of thumb: a 1099 rate should be roughly 1.3–1.5× the equivalent W-2 salary to break even after extra tax, benefits, and unpaid time. Use our freelance rate calculator to price that in.
What is the QBI deduction?
The Qualified Business Income deduction lets most self-employed people deduct up to 20% of their qualified business income from taxable income — it reduces income tax but not self-employment tax. It phases out for higher earners in certain service businesses (the 2026 threshold starts around $201,775 single / $403,550 married). The toggle in the calculator applies the simplified below-threshold version.
Related tools
Quarterly Tax Calculator · Freelance Rate Calculator · Invoice Generator · Paycheck Calculator · Salary to Hourly Calculator