1099 Tax Calculator
Estimate federal taxes owed on freelance or contractor income reported on a 1099. Accounts for self-employment tax, W-2 income, business expenses, and withholdings to show your net tax liability.
Last updated: September 2026
Formula below · 2 sources (IRS, Wikipedia) · Updated Sep 2026
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About this calculator
This estimates your 2026 federal tax on 1099 income plus any W-2 wages, then subtracts tax already withheld. Step 1, self-employment tax: net profit = 1099 income − business expenses; SE tax = 92.35% of net profit × (12.4% Social Security + 2.9% Medicare), with no SE tax if 92.35% of profit is under $400. Social Security applies only up to the 2026 wage base of $184,500, and W-2 wages use up that base first. Step 2, income tax: AGI = net profit + W-2 wages − half of SE tax. Subtract the 2026 standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and the 20% qualified business income (QBI) deduction, which is 20% of net profit after the half-SE-tax deduction, limited to 20% of taxable income before QBI. Apply the 2026 brackets for your filing status. Step 3: total = SE tax + income tax − tax already withheld (W-2 withholding and estimated payments). A negative result means you have paid more than this estimate. Not modeled: credits (child tax credit, EITC), itemized deductions, self-employed health insurance and retirement-plan deductions, capital gains, state tax, the 0.9% Additional Medicare Tax, and QBI limits above $201,750 single / $403,500 joint taxable income. Quarterly estimated payments that cover at least 90% of this year's tax (or 100%/110% of last year's) avoid the underpayment penalty.
How to use
Suppose you earned $60,000 of 1099 income with $10,000 of business expenses, $20,000 of W-2 wages, $3,000 already withheld, and you file single. Net profit = $50,000. SE tax = $50,000 × 0.9235 × 15.3% = $7,064.78. AGI = $50,000 + $20,000 − $3,532.39 (half of SE tax) = $66,467.61. Taxable income before QBI = $66,467.61 − $16,100 = $50,367.61. QBI deduction = the lesser of 20% × ($50,000 − $3,532.39) = $9,293.52 and 20% × $50,367.61 = $10,073.52, so $9,293.52. Taxable income = $41,074.09; income tax = $1,240 + 12% × $28,674.09 = $4,680.89. Total = $7,064.78 + $4,680.89 − $3,000 = $8,745.67 still owed. Spread over the year that is about $2,186 per quarterly estimated payment.
Frequently asked questions
What is the self-employment tax rate for 1099 income in 2026?
The self-employment tax rate is 15.3% (12.4% Social Security + 2.9% Medicare), applied to 92.35% of net self-employment income. The 12.4% Social Security part stops at the 2026 wage base of $184,500, and any W-2 wages you earned count toward that base first. Above it, only the 2.9% Medicare portion applies (plus a separate 0.9% Additional Medicare Tax above $200,000 single / $250,000 joint, not included here). You also deduct half of the SE tax when calculating your adjusted gross income, which this calculator does.
How do business expenses reduce my 1099 tax liability?
Legitimate business expenses are subtracted from your gross 1099 income before any tax is calculated, reducing both your self-employment tax and income tax. Common deductible expenses include home office costs, equipment, software subscriptions, travel, and professional services. Keeping thorough receipts and records is essential, as the IRS may audit self-employed individuals. The larger your deductible expenses, the lower your net profit and therefore the lower your total tax obligation.
When should I make quarterly estimated tax payments on 1099 income?
If you expect to owe at least $1,000 in federal taxes after withholdings, the IRS requires quarterly estimated payments. The four due dates are typically April 15, June 15, September 15, and January 15 of the following year. Failing to pay enough each quarter can result in an underpayment penalty even if you pay in full at tax time. Use your estimated annual tax from this calculator divided by 4 as a baseline for each quarterly payment.