1099 Tax Calculator

How 1099 taxes are estimated

Independent contractors usually estimate taxes from net profit, which is 1099 income minus ordinary business expenses. This calculator estimates self-employment tax first, subtracts the deductible half of that tax when estimating adjusted income, applies the standard deduction, and then applies 2026 federal tax brackets.

It also lets you subtract federal withholding or estimated payments already made, then adds an optional state tax reserve percentage so you can see a practical savings target.

What is self-employment tax?

Self-employment tax covers Social Security and Medicare taxes for people who work for themselves. For 2026 estimates, this calculator applies the IRS worksheet approach: 92.35% of net profit is treated as net earnings from self-employment, Medicare tax applies to those earnings, and Social Security tax applies up to the 2026 wage base.

How much should freelancers set aside for taxes?

The right percentage depends on income, expenses, filing status, credits, deductions, and state taxes. A common starting point is to reserve a meaningful share of net profit, then adjust as your income becomes clearer. This tool converts the annual estimate into monthly and quarterly amounts so the savings target is easier to act on.

How write-offs change the estimate

Business expenses can reduce the net profit used for tax planning, but they need to be ordinary, necessary, and documented. For a deeper explanation of Schedule C expense categories, home office choices, mileage, and depreciation, read the 1099 write-offs guide.

When are quarterly estimated taxes due?

Calendar-year taxpayers generally make estimated tax payments during the year instead of waiting until filing season. IRS Form 1040-ES provides the current payment vouchers and instructions. If a due date falls on a weekend or legal holiday, the payment is generally due on the next business day.