1099 & Self-Employment Tax Calculator

Freelancer, independent contractor, or gig-app driver (DoorDash, Uber): nobody withholds taxes for you, and you pay both halves of FICA. This calculator applies SE tax, the ½ deduction, and the 20% QBI deduction — and tells you how much to set aside from every payment.

1099 Self-Employment Tax Calculator

SE tax, the ½ deduction, and the 20% QBI deduction — applied automatically.

2026

1099 income (gross receipts)

Business expenses (deductible)

Filing status

Dependents under 17

State (for state tax)

Your 1099 take-home

$4,638/month · effective rate 20.5%

Set aside for taxes

~20%

$3,586/quarter

Net profit (income − expenses): $70,000
Self-employment tax (15.3%)Social Security $8,016 + Medicare $1,875: −$9,891
Federal income tax: −$4,452
Total tax: −$14,342
Take-home pay: $55,658
Quarterly estimated payment: $3,586

Deductions applied automatically: ½ SE tax $4,945 · QBI 20% $9,791 → taxable income $39,164

Estimates only. Not tax or legal advice. Consult a professional.

1099 vs W-2: same pay, different taxes

Single filer, federal only (+ SE tax on 1099), no business expenses. Click an amount for its W-2 page.

Gross income	W-2 take-home	1099 take-home	Difference
$50,000	$42,355	$40,268	−$2,087
$75,000	$61,593	$59,505	−$2,087
$100,000	$79,180	$77,635	−$1,545
$150,000	$113,791	$112,392	−$1,399

The gap is smaller than it looks: a 1099 pays both halves of FICA, but the ½ SE-tax deduction and the 20% QBI deduction soften it. That's why a 1099 rate should exceed the equivalent W-2 salary — it has to cover this difference plus the benefits you don't get.

The 20% QBI deduction (Section 199A)

Pass-through business owners (including any 1099 filing Schedule C) deduct 20% of qualified business income before federal tax — made permanent under OBBBA. On $100,000 of net profit that's $15,367 off taxable income (~$3,381 saved). This calculator applies it automatically; SSTB and high-income limits need the Pro spreadsheet.

Quarterly estimated taxes (tax year 2026)

Required if you'll owe $1,000+. Safe harbor: 100% of last year's tax (110% if AGI > $150,000).

Apr 15, 2026

Jun 15, 2026

Sep 15, 2026

Jan 15, 2027

Deductions that shrink your 1099 tax bill

Home office & mileage

The simplified method allows $5/sq ft (up to 300 sq ft) for exclusive work space, and every business mile deducts at the IRS standard mileage rate. Track both from day 1 — reconstructing them in April is money lost.

Health & retirement

Health premiums you pay yourself are deductible (self-employed health insurance), and a SEP-IRA or Solo 401(k) shelters tens of thousands pre-tax. Neither is modeled here — they push your real bill below what you see above.

Methodology

Modeled: SE tax on 92.35% ($400 floor, $178,000 wage base), deductible half, flat 20% QBI, CTC, and simplified state tax (top rate on AGI − standard deduction). Not modeled: QBI SSTB limits, health/retirement deductions, mixed W-2 income.

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1099 tax FAQ

How much tax will I pay on $50,000 of 1099 income?

On $50,000 of net profit, a single filer with no state tax pays $7,065 in SE tax + $2,667 federal income tax = $9,732 total (a 19.5% effective rate), keeping $40,268. With state tax it's more — run the calculator with your state.

What is the self-employment tax rate for 2026?

15.3%: 12.4% Social Security (on the first $178,000 of the base) + 2.9% Medicare (no cap, +0.9% additional above $200,000/$250,000). It applies to 92.35% of your net profit, and the employer-equivalent half is deductible from your taxable income.

How much should I set aside for taxes as a 1099 contractor?

Federal + SE tax alone: ~19% at $50,000 and ~22% at $100,000 of net profit. Add your state rate (0–9.9%) and a solid rule of thumb is setting aside 25–30% of every payment. The calculator gives you your exact percentage.

Do I have to pay quarterly estimated taxes?

Yes, if you expect to owe $1,000 or more at filing. For tax year 2026 they're due April 15, June 15, and September 15, 2026, plus January 15, 2027. Safe harbor: pay 100% of last year's tax (110% if your AGI topped $150,000) and you avoid penalties even if you end up short.

Does the 20% QBI deduction apply to me?

Most freelancers and sole proprietors, yes: deduct 20% of qualified business income. On $100,000 of net profit that's $15,367 off your taxable income — roughly $3,381 saved in the 22% bracket. Above certain income thresholds, SSTB limits apply that this calculator doesn't model.

Free PDF: 10 Hidden Tax Hacks for US Workers

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