1099 Tax Calculator

Estimate the tax on 1099 income for 2026: self-employment tax, federal income tax after the 20% qualified business income deduction, state tax, and how much of each payment to set aside. Example: $90,000 of 1099 income with $10,000 of expenses owes about $16,650 and means setting aside roughly 18.5% of each payment.

How to use the 1099 Tax Calculator

1. Enter the total you were paid on 1099 forms.
2. Subtract your business expenses to see net profit.
3. Choose your filing status and your state tax rate (0 if none).
4. Press Calculate to see total tax, a set-aside percentage and the quarterly payment.

Formula and method

Tax on 1099 income has two parts. Self-employment tax is 15.3% of 92.35% of net profit. Federal income tax is then figured on profit minus half the SE tax, the standard deduction and, for most filers, the 20% qualified business income deduction. Nothing is withheld from 1099 pay, so you pay through quarterly estimates.

Worked example: $90,000 of 1099 income, $10,000 of expenses, single

How much to set aside from each 1099 payment

A common rule of thumb is 25% to 30% of net profit for combined federal taxes at middle incomes. In the example above, total tax is 20.8% of net profit and 18.5% of gross receipts, because expenses and the QBI deduction lower the tax. Add your state rate if your state taxes income.

1099 vs W-2: what changes

A W-2 employee pays 7.65% in Social Security and Medicare and the employer pays the other 7.65%. As a 1099 contractor you pay both halves (15.3%), deduct half of it, and make quarterly payments yourself. You can also deduct business expenses that employees cannot.

Frequently asked questions

How much tax do I pay on 1099 income?

Self-employment tax of 15.3% on 92.35% of net profit, plus federal income tax at your bracket, plus state tax. A rule of thumb is to save 25% to 30% of profit.

Is 1099 income taxed more than W-2 income?

Social Security and Medicare tax is higher because you pay both halves, but you can deduct half of it and business expenses.

Do I owe tax if no tax was withheld?

Yes. You must pay estimated tax if you expect to owe $1,000 or more, generally in four quarterly payments.

What is the QBI deduction?

Many 1099 earners can deduct up to 20% of qualified business income, which lowers income tax but not SE tax.

What expenses can I deduct?

Ordinary and necessary business costs such as supplies, software, mileage and a home office, if you qualify.

Do I need to file if I made under $400?

You may not owe SE tax, but you may still have a filing requirement based on total income.

Does this include state tax?

Only the flat rate you enter. State rules and local taxes vary.

Sources

• IRS: Estimated taxes
• IRS: Qualified business income deduction

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