1099 tax calculator
Enter what you earned and what you spent. You get the number that actually matters: how much to set aside, and what each quarterly payment should be. 2026 federal rules, self-employment tax, and the QBI deduction included.
Your numbers
What you'll owe
Estimated total tax
$11,740
≈ 19.6% of profit · set aside 20% of every deposit
Each quarterly payment
$2,935
Due ~Apr 15, Jun 15, Sep 15, Jan 15
- Net business profit
- $60,000
- Self-employment tax (15.3%)
- $8,478
- QBI deduction
- − $11,152
- Taxable income
- $29,209
- Federal income tax
- $3,262
Don't miss your next IRS payment
Email me Set aside 20% — about $2,935 each quarter and one reminder a week before it's due. No account, no spam.
How much is 1099 income taxed?
The short answer: federal tax on 1099 profit lands between roughly 19% and 22% for most single filers before any state tax. That is 15.3% self-employment tax on 92.35% of net profit, plus federal income tax on what is left after half the self-employment tax, the standard deduction and the 20% qualified business income deduction.
The percentage climbs with profit because income tax brackets are graduated while self-employment tax is flat until the Social Security wage base. On $50,000 of profit the total federal bill is about $9,435; on $100,000 it is about $21,915. Divide by twelve and you have the amount to move out of the account each month, which is the only version of this number that changes anything.
| Net profit | Self-employment tax | Federal income tax | Total federal | Effective rate | Set aside monthly |
|---|---|---|---|---|---|
| $25,000 | $3,532 | $319 | $3,851 | 15.4% | $321 |
| $50,000 | $7,065 | $2,370 | $9,435 | 18.9% | $786 |
| $75,000 | $10,597 | $4,600 | $15,197 | 20.3% | $1,266 |
| $100,000 | $14,130 | $7,786 | $21,915 | 21.9% | $1,826 |
| $150,000 | $21,194 | $15,964 | $37,158 | 24.8% | $3,097 |
Single filer, standard deduction, 20% QBI deduction applied, no state income tax included. Projected 2026 federal figures for planning — not tax advice.
1099 pay vs a salary: what the same number is worth
A $100,000 contract is not a $100,000 salary. As an employee, your employer pays half of Social Security and Medicare and usually funds part of health insurance and paid time off. On 1099 income you carry all of it, so the same headline figure buys a noticeably smaller life unless the rate is higher.
The rough rule contractors use: add 25–30% to a salary figure to reach an equivalent 1099 rate, then keep every deductible expense on the books, because each deductible dollar removes both 15.3% self-employment tax and income tax at your bracket. That double effect is why disciplined expense tracking is worth more than any single deduction trick.
To compare a specific offer side by side — payroll tax, benefits value and the self-employment premium — use the 1099 vs W-2 calculator, then come back here for the reserve amount.
Calculate 1099 taxes by state
State income tax is the biggest variable in your reserve percentage. Pick your state for a pre-filled estimate, local tax notes and the reserve rate that fits where you file.
How 1099 taxes actually work
As a 1099 contractor you are both employer and employee, so you pay the full 15.3% Social Security and Medicare bill instead of splitting it. That applies to 92.35% of your net profit — income minus deductible expenses — not to the gross amount on the form.
On top of that, federal income tax applies to your profit after deducting half of the self-employment tax, the standard deduction, and up to 20% qualified business income. That last one is why aggressive expense tracking matters twice: each deductible dollar knocks out both SE tax and income tax.
The practical failure mode isn't the math — it's cash. The money arrives, it gets spent, and April is a crisis. The fix is mechanical: move the reserve percentage out the day each deposit lands.
Frequently asked questions
How much tax do I pay on 1099 income?
Most 1099 workers pay 15.3% self-employment tax on 92.35% of net profit, plus federal income tax on profit minus half of the SE tax, the standard deduction and any qualified business income deduction. A common rule of thumb is to reserve 25-30% of net profit.
What can I deduct as a 1099 contractor?
Ordinary and necessary business expenses: mileage or actual vehicle costs, tools and supplies, phone and internet used for work, insurance, home office, software subscriptions, professional fees and health insurance premiums.
Do I have to pay quarterly estimated taxes?
Generally yes, if you expect to owe $1,000 or more for the year. Estimated payments are due around April 15, June 15, September 15 and January 15 of the following year.
Is this 1099 tax calculator accurate?
It is an estimate using 2026 federal brackets, the standard deduction and simplified QBI rules. It does not model state tax, credits or unusual filing situations. Use it for planning and confirm with a tax professional.
What percentage of tax do you pay on 1099 income?
For most single filers the total federal rate on net profit works out around 20% at $25,000, roughly 22-24% at $50,000 to $100,000, and higher above that as income tax brackets climb. State income tax is added on top, which is why the same profit costs more in California than in Texas.
How much will I owe in taxes on $50,000 of 1099 income?
On $50,000 of net profit a single filer owes roughly $7,065 in self-employment tax plus federal income tax after the standard and QBI deductions — about $11,000 total federal, or a little under $1,000 a month set aside. Run your own figures in the calculator above for the exact reserve.
Is 1099 pay better than a salary?
Only if the rate is higher. A contractor pays both halves of Social Security and Medicare and funds their own benefits, so a 1099 rate usually needs to be 25-30% above an equivalent salary to leave the same money in your pocket. The 1099 vs W-2 calculator compares a specific offer.
Estimates only, using projected 2026 federal figures. Not tax advice.