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1099 Tax Calculator (2026 Contractor Taxes)

Enter your 1099 income and business expenses for the year. You'll see the self-employment tax, the federal income tax on the profit, a flat state estimate, and how much of each payment to set aside.

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Estimated tax on your 1099 income

$12,793.10

Net profit (income − expenses)
$52,000.00
Self-employment tax
$7,347.37
Federal income tax on the profit
$2,845.73
State income tax (flat estimate)
$2,600.00
Set aside from every payment
21%
Set aside per month
$1,066.09
Quarterly estimated payment (federal)
$2,548.28
QBI deduction included
$6,445.26
Marginal federal bracket
12%
1099 incomeTotal tax (after the same expense ratio)Set aside
$20,000.00$3,315.7917%
$40,000.00$7,930.8620%
$60,000.00$12,793.1021%
$80,000.00$17,655.3322%
$100,000.00$22,633.0623%
$150,000.00$38,010.4025%

Clients don't withhold tax from 1099 pay, so the money to set aside is the total above. Pay the federal part in four estimated payments to avoid an underpayment penalty. A planning estimate under 2026 federal rules, not tax advice. It leaves out state tax, AMT, capital-gain rates and most credits.

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Estimate only, not tax advice. These are estimates for planning, not tax, legal or financial advice. They use the 2026 federal figures published by the IRS and SSA (sources below) and a simplified return: no state tax (except the 1099 calculator's flat rate), AMT, capital-gain rates, education or dependent-care credits. Check your actual return with tax software, the IRS or a tax professional.

With the example inputs, $60,000 of 1099 income with $8,000 of expenses leaves $52,000.00 of profit. Self-employment tax is $7,347.37, federal income tax on the profit is $2,845.73 (after the $6,445.26 QBI deduction) and a 5% state tax adds $2,600.00: $12,793.10 in total, so set aside 21% of every payment, about $1,066.09 a month.

Results are estimates for planning · Figures for tax year 2026 (returns filed in 2027), checked November 3, 2026

How this calculator works

Takes your 1099-NEC / 1099-K income minus business expenses (your Schedule C net profit), adds the 15.3% self-employment tax, takes off the deductible half and the qualified business income deduction, and figures federal income tax on the profit at your 2026 brackets — on top of any W-2 job. A flat state rate is added on the profit. The result is the total tax on the contractor income and the share of each payment to set aside.

  • Net profit = 1099 income − business expenses (Schedule C).
  • Self-employment tax = 15.3% × 92.35% of profit (12.4% part capped at the $184,500 wage base, shared with any W-2 wages).
  • Federal income tax on the profit = 2026 tax with the profit − 2026 tax without it, after half the self-employment tax and the 20% qualified business income deduction.
  • Set-aside % = (self-employment tax + federal income tax on the profit + state tax) ÷ 1099 income.

Worked example

With these inputs: 1099 income this year $60,000; business expenses $8,000; filing status Single; w-2 wages from a job $0; state income tax rate 5%; children under 17 0.

The result is estimated tax on your 1099 income $12,793.10, with net profit (income − expenses) $52,000.00 and self-employment tax $7,347.37. Clients don't withhold tax from 1099 pay, so the money to set aside is the total above. Pay the federal part in four estimated payments to avoid an underpayment penalty. A planning estimate under 2026 federal rules, not tax advice. It leaves out state tax, AMT, capital-gain rates and most credits.

How much to set aside for 1099 taxes

A common rule of thumb is 25–30%, but the right number depends on your profit, expenses and bracket. In the example it's 21%; at $100,000 of 1099 income with $10,000 of expenses it's 24% ($23,815.94 in total). The table under the result shows the set-aside for other income levels with the same expense ratio.

Move that percentage into a separate savings account each time a client pays, then send the federal part to the IRS each quarter. The quarterly estimated tax calculator gives the penalty-proof amount and the 2026 due dates.

Deductions that lower 1099 taxes

Expenses come off before both taxes, so every legitimate one saves roughly 25–40%: business mileage (log every trip), a home office used only for work, phone and internet for the business, equipment, software, supplies, fees on payment platforms, and education for your current work. The qualified business income deduction then takes up to 20% of the remaining profit off your taxable income while your taxable income is under $201,750 ($403,500 joint) for 2026.

Half the self-employment tax, self-employed health insurance premiums and SEP-IRA or solo 401(k) contributions lower income tax too. The self-employment tax calculator shows the 15.3% part on its own.

1099 and W-2 together

With a day job, the 1099 profit lands on top of your wages, so it's taxed at your highest bracket. Enter the W-2 wages and the calculator taxes only the extra income. You can cover the tax by raising your W-4 withholding instead of making quarterly payments; the W-4 calculator works out the extra per paycheck.

Budget around the tax, not the gross: the monthly budget calculator and the hourly to monthly salary calculator work best with your after-tax 1099 income.

Sources

Frequently asked questions

How much tax do I pay on 1099 income?

Self-employment tax (about 14.1% of profit) plus income tax at your bracket on the profit after deductions, plus any state tax. $60,000 of 1099 income with $8,000 of expenses: about $12,793.10 in total with a 5% state tax, or 21%.

What percentage should I save for 1099 taxes?

Use your own numbers: in the example it's 21%, rising to 24% at $100,000 of income. Many contractors save 25–30% to be safe and keep any extra as a refund cushion.

Do I need to pay quarterly taxes on 1099 income?

If you expect to owe $1,000 or more for 2026 after withholding, yes: estimated payments are due April 15, June 15 and September 15, 2026 and January 15, 2027.

What can I deduct as a 1099 contractor?

Ordinary and necessary business expenses: mileage, home office, phone and internet use for work, equipment, software, supplies and platform fees. Keep receipts and records.

Is the QBI deduction included?

Yes, up to 20% of your profit after the deductible half of self-employment tax, while taxable income is under $201,750 ($403,500 joint). Above that, it depends on the business type and wages, so the calculator leaves it out and says so.