1099 & Self-Employment Tax Calculator
Freelancer, gig worker, or contractor? Enter your income and expenses to instantly see your self-employment tax, income tax, quarterly payments, and what you actually keep.
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Estimated total tax
2026Take-home $0 per year
Effective rate 0% · Marginal 0%
Quarterly estimated payments
🔒 Calculated entirely in your browser — your income is never sent anywhere. Federal estimate only; state income tax not included.
How your 1099 tax is calculated
Self-employment income is taxed in two layers. Here's the exact path the IRS uses — and that this calculator follows:
1. Find your net profit
Subtract business expenses from your gross 1099 income. That net profit (Schedule C) is what gets taxed — not your gross.
2. Apply 15.3% SE tax
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit. Social Security stops at the wage cap ($176,100 in 2025).
3. Deduct half your SE tax
One-half of your SE tax comes off your income before federal income tax is calculated — an automatic above-the-line deduction.
4. Add federal income tax
Subtract the standard deduction and (if eligible) the 20% QBI deduction, then apply your income-tax bracket for the year.
Worked example — $80,000 gross, $12,000 expenses (single, 2025, QBI applied)
Matches the calculator with the 2025 tax year selected (no W-2, retirement, or health-insurance add-ons). Your numbers depend on filing status, other income, QBI eligibility, and deductions.
What is self-employment tax?
Self-employment tax is a 15.3% tax that covers Social Security and Medicare for people who work for themselves. When you're a W-2 employee, your employer pays half of these payroll taxes for you. When you're self-employed — a freelancer, gig worker, independent contractor, or sole proprietor receiving 1099 income — you pay both halves yourself. That's what self-employment tax is.
It breaks down into 12.4% for Social Security and 2.9% for Medicare. The Social Security portion only applies up to an annual wage base ($176,100 in 2025, $184,500 in 2026); the Medicare portion has no cap, and high earners pay an extra 0.9% above certain thresholds. SE tax is separate from — and in addition to — the federal income tax you owe on the same income.
Quarterly estimated taxes
Because no employer withholds tax from your 1099 income, the IRS expects you to pay as you go in four estimated installments. If you'll owe $1,000 or more for the year, you generally need to make quarterly payments. The calculator above splits your estimated tax into the four due dates so you know what to send each quarter.
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Deductions that lower your 1099 tax
Every legitimate deduction reduces your net profit, which lowers both your SE tax and your income tax. The big ones:
- Business expenses — home office, mileage, equipment, software, supplies, phone, and other ordinary & necessary costs (Schedule C).
- Half of your SE tax — automatically deducted above-the-line before income tax is calculated.
- 20% QBI deduction — the Qualified Business Income deduction can remove up to 20% of your qualified profit from income tax.
- Retirement & health — SEP-IRA / Solo 401(k) contributions and self-employed health insurance premiums.
Frequently asked questions
How much tax do I pay on 1099 income? +
On 1099 / self-employment income you pay two layers: self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, plus federal income tax at your regular bracket. A common rule of thumb is to set aside 25%–30% of your net 1099 income for taxes, though the exact amount depends on your total income, filing status, deductions, and state.
What is the self-employment tax rate for 2025 and 2026? +
The self-employment tax rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare. The 12.4% Social Security portion only applies up to the wage base — $176,100 in 2025 and $184,500 in 2026 — while the 2.9% Medicare portion applies to all net earnings with no cap.
Why is self-employment tax calculated on 92.35% of profit? +
The IRS lets you reduce your net profit by 7.65% before applying the 15.3% rate, so SE tax is figured on 92.35% of your net profit. This mirrors the employer-side payroll tax a traditional employer would have paid for a W-2 employee. You then also deduct one-half of your SE tax when calculating income tax.
Do I have to pay quarterly estimated taxes? +
Generally yes. If you expect to owe $1,000 or more in tax for the year, the IRS expects you to make four quarterly estimated payments rather than paying it all in April. The due dates fall around April 15, June 15, September 15, and January 15 of the following year. Missing them can trigger an underpayment penalty.
What can I deduct to lower my 1099 taxes? +
Ordinary and necessary business expenses (Schedule C) reduce your net profit directly — home office, mileage, supplies, software, phone, health insurance, and more. You also deduct one-half of your SE tax, and many self-employed people qualify for the 20% Qualified Business Income (QBI) deduction. Every dollar of legitimate expense lowers both your SE tax and your income tax.
Is this 1099 tax calculator accurate? +
It uses the current IRS self-employment tax mechanics (15.3% on 92.35% of net profit, the Social Security wage cap, the 0.9% Additional Medicare Tax, the 50% SE-tax deduction) and the final 2025 and 2026 federal income-tax brackets and standard deductions to give a close estimate. It is an estimate for planning, not tax advice, and does not yet include state income tax.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute tax, legal, or financial advice. It uses final 2025 and 2026 federal figures; state income taxes are not included. Actual tax depends on your full return, credits, and other factors. Verify with a qualified professional or the IRS before making decisions.