1099 Tax Calculator 2026: Self-Employment and Quarterly Tax
2026 self-employment tax, federal income tax with QBI and mileage, optional state tax, and your quarterly payment on 1099 income.
Built by Toolsque Team · last updated September 13, 2026 · checked against our testing process
Your 1099 income (2026)
Estimated tax on your 1099 income
QBI deduction applied: $6,445. Uses 2026 IRS brackets, standard deduction and the $184,500 Social Security wage base. An estimate, not tax advice.
Related: DoorDash tax calculator · all freelancer tools
How to use the 1099 tax calculator
- Enter your gross 1099 income: everything on your 1099-NEC and 1099-K forms plus any self-employment income without a form, since it is taxable either way.
- Enter expenses and business miles: pick when you drove, because the 2026 rate is 72.5 cents per mile to June and 76 cents from July 1.
- Pick your filing status and add W-2 wages: wages push your 1099 profit into higher brackets and use up the Social Security cap first.
- Add retirement contributions and your state rate: both are optional and change the total.
- Read the quarterly payment and set aside share: pay the quarterly amount by each due date and move the share of every client payment into savings.
How much tax do you pay on 1099 income?
1099 income is taxed twice. First comes self-employment tax, 15.3% for Social Security and Medicare, because you pay both the employee and the employer share. Then regular federal income tax applies to what is left after deductions. A single filer with $60,000 of 1099 income and $8,000 of expenses owes about $7,347 in self-employment tax and $2,846 in federal income tax for 2026, $10,193 in total, or 17% of gross. That works out to quarterly payments of about $2,548. The calculator above runs these numbers for your income, with state tax as an option.
Self-employment tax rate for 2026
The self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net profit, which removes the share an employer would normally deduct. Three limits matter:
- Social Security cap: the 12.4% part stops at $184,500 of combined wages and self-employment earnings for 2026. W-2 wages count toward the cap first.
- Extra Medicare tax: an additional 0.9% applies to earnings above $200,000 for single and head of household filers, or $250,000 for married couples filing jointly.
- The $400 floor: if net earnings from self-employment are under $400, no self-employment tax is due, although the income still counts for income tax.
Half of your self-employment tax is deducted before income tax is worked out, so part of it comes back to you.
How much to set aside for 1099 taxes
A common rule is 25 to 30% of what you earn. The real share depends on your profit and filing status. For a single filer with no other income and no expenses, the 2026 federal numbers look like this:
| 1099 profit | Self-employment tax | Federal income tax | Total federal | Share to set aside |
|---|---|---|---|---|
| $20,000 | $2,826 | $199 | $3,025 | 15.1% |
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% |
| $60,000 | $8,478 | $3,559 | $12,037 | 20.1% |
| $80,000 | $11,304 | $5,344 | $16,647 | 20.8% |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% |
Add your state income tax rate on top. Nine states have no tax on wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Move the share into a separate savings account the day each client pays you.
2026 federal tax brackets
The standard deduction for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for head of household. Income above that is taxed in these brackets:
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,776 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | over $640,600 | over $768,700 | over $640,600 |
The deductions that do the heavy lifting
The calculator applies three automatically: half of your self-employment tax, the standard deduction, and the qualified business income (QBI) deduction of 20%. QBI is now permanent, and it is capped at 20% of your taxable income, which often limits it at lower incomes. Service businesses such as consultants and lawyers can lose part or all of it at higher incomes.
Your job is the expenses. Business mileage is the big one for drivers and field trades: the IRS rate is 72.5 cents per mile for January to June 2026 and 76 cents per mile from July 1. Home office, the business share of your phone and internet, software, insurance, tools and supplies all count. Self-employed health insurance premiums are deductible too. At a typical combined rate, every $1,000 of real expenses cuts your tax by roughly $200 to $300.
Quarterly estimated tax payments
The IRS expects tax as you earn, not all at filing time. For income earned in 2026 the payments are due April 15, June 15 and September 15, 2026, and January 15, 2027. Paying late or too little adds an underpayment penalty worked out like interest, even if you pay everything by April.
You avoid that penalty if your payments cover at least 90% of this year's tax, or 100% of last year's total tax, rising to 110% if last year's adjusted gross income was over $150,000. The prior year option is the easy one when income swings: take last year's total tax, divide by four, and pay that each quarter.
1099 vs W-2: why the same pay nets less
An employee pays 7.65% for Social Security and Medicare and the employer pays the other 7.65%. As a contractor you pay the full 15.3%, and there are no employer benefits. To match a W-2 salary, a contractor rate often needs to be 25 to 40% higher once you add self-employment tax, health insurance, retirement and unpaid time off. The day rate to hourly calculator helps set that rate.
Retirement contributions cut the bill
A Solo 401(k) lets you contribute as both employee and employer. For 2026 the employee part is up to $24,500, plus an $8,000 catch-up at ages 50 to 59 or 64 and older, or $11,250 at ages 60 to 63. The employer part is up to 20% of net self-employment earnings after the deduction for half of self-employment tax. The combined limit is $72,000 before catch-up. A SEP IRA uses the same 20% and $72,000 limits and is simpler to open, but has no employee deferral. These contributions reduce income tax, not self-employment tax.
How the estimate is calculated
Net profit = 1099 income minus expenses minus miles times the mileage rate. Self-employment tax = net profit × 92.35% × 15.3%, with the 12.4% part capped at $184,500 minus W-2 wages, plus 0.9% above the Medicare threshold. Taxable income = net profit plus W-2 wages, minus half of self-employment tax, minus retirement contributions, minus the standard deduction, minus the QBI deduction. Federal income tax on your 1099 income = tax on that total minus the tax your W-2 wages alone would owe, so wage withholding is not counted twice. State tax is your rate times net profit.
What this calculator does not cover
It does not include tax credits, itemized deductions, capital gains, the alternative minimum tax, or the full QBI rules for service businesses at high incomes. State tax is a flat estimate, and some cities add their own income tax. Treat the result as a planning number and confirm it with a tax professional before filing.
Related tools
Gig drivers: the DoorDash tax calculator builds in mileage. Track the hours behind the income with the time card calculator, and bill clients with the free invoice generator.
If your 1099 income comes from delivery driving, see which delivery app pays the most for the miles you actually drive.
Working out what to charge rather than what you owe? Freelancer profit planning beyond hourly rates covers why an hourly figure that clears your tax bill can still leave you short at the end of the year.
Frequently Asked Questions
How much should I set aside for taxes on 1099 income?
For 2026 a single filer usually needs about 15 to 25% of profit for federal tax, depending on income, plus your state rate. At $60,000 of profit it is about 20%. The calculator gives your exact share and quarterly payment.
What is the self-employment tax rate for 2026?
15.3% on 92.35% of net profit: 12.4% for Social Security on earnings up to $184,500, and 2.9% for Medicare with no cap. An extra 0.9% Medicare tax applies above $200,000 single or $250,000 married filing jointly. No self-employment tax is due if net earnings are under $400.
How do I calculate tax on 1099 income?
Subtract business expenses to get net profit. Multiply by 92.35% and then 15.3% for self-employment tax. Deduct half of that tax, the standard deduction and the QBI deduction, then apply the 2026 brackets to what is left. Add both taxes together.
What can I deduct as a 1099 contractor?
Business mileage at 72.5 cents per mile for January to June 2026 and 76 cents from July 1, home office, the business share of phone and internet, equipment, software, supplies, insurance, professional fees and self-employed health insurance premiums. Half of self-employment tax and the QBI deduction are applied automatically.
When are quarterly estimated taxes due for 2026?
April 15, June 15 and September 15, 2026, and January 15, 2027. Pay at least 100% of last year's total tax, or 110% if your income was over $150,000, split into four payments, and you avoid the underpayment penalty.
Is the QBI deduction still available in 2026?
Yes. The 20% qualified business income deduction was made permanent. It is capped at 20% of taxable income, and service businesses such as consultants, lawyers and financial advisers can lose part or all of it at higher incomes.
Do I pay more tax on 1099 than W-2 income?
Usually yes, by about 7.65% of your earnings, because a contractor pays both halves of Social Security and Medicare. Half of that extra tax is deductible, and business expenses reduce it, which W-2 employees cannot do.
Does this 1099 calculator include state taxes?
Yes, as an option. Enter your state income tax rate and it is applied to net profit. Nine states have no tax on wage income, including Texas, Florida and Washington.