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1099 / Self-Employment · 2026

1099 Tax Calculator — what you owe & set aside

A 1099 contractor owes self-employment tax — 15.3% of 92.35% of net profit — on top of federal and state income tax. On $80,000 of self-employment income with no state tax, that's about $18,830 in total tax, or roughly $4,708 set aside each quarter. Enter your own income and expenses for the exact figure.

Total 1099 revenue before expenses, in US dollars
Deductible business expenses, in US dollars

Enter your 1099 income above to see what you'll keep and how much to set aside each quarter.

How self-employment tax works

As a 1099 contractor you pay both halves of Social Security and Medicare yourself — that's the 15.3% self-employment tax, applied to 92.35% of your net profit (gross income minus business expenses). The Social Security portion (12.4%) stops at the $184,500 wage base for 2026; the Medicare portion (2.9%) has no cap.

On top of that you owe federal and state income tax on your profit — but you get to deduct half of your SE tax first. Because no employer withholds for you, the IRS expects quarterly estimated payments(Form 1040-ES) on April 15, June 15, September 15, and January 15. Set aside the per-quarter figure above so April isn't a surprise.

Common Questions

How much tax will I pay on a 1099?
As a 1099 contractor you pay self-employment tax (15.3% of 92.35% of your net profit — 12.4% Social Security up to $184,500 in 2026 plus 2.9% Medicare with no cap) on top of federal and state income tax. Combined, most 1099 workers owe roughly 25–40% of net profit depending on income and state. Enter your numbers above for an exact estimate.
How much should I set aside for taxes if I'm 1099?
A common rule of thumb is to set aside 25–30% of every payment for taxes, but the precise figure depends on your income, business expenses, and state. The calculator above gives you an exact quarterly amount — divide your total estimated tax by four and pay it via IRS Form 1040-ES on the April 15, June 15, September 15, and January 15 deadlines.
Do you have to pay self-employment tax if you make less than $10,000?
Yes. You owe self-employment tax once your net self-employment earnings reach $400 for the year — there is no $10,000 threshold. The 15.3% SE tax applies to 92.35% of your net profit regardless of how small. You may owe little or no income tax at low earnings (the standard deduction shields it), but SE tax still applies.
What is the self-employment tax rate for 2026?
The 2026 self-employment tax rate is 15.3%: 12.4% for Social Security on net earnings up to the $184,500 wage base, plus 2.9% for Medicare on all net earnings (with an extra 0.9% above $200,000 single / $250,000 married). You apply this to 92.35% of your net profit, and you can deduct half of the SE tax from your income for federal income-tax purposes.
Can I lower my 1099 taxes with deductions?
Yes — deductible business expenses (home office, equipment, software, mileage, supplies, health insurance premiums) reduce your net profit, which lowers both your self-employment tax and income tax. Contributions to a SEP-IRA or solo 401(k) reduce income tax further. Enter your expenses above to see the effect.

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