1099 tax calculator
Estimate the self-employment tax on your 1099 income and see how much to set aside each quarter.
Estimate only — covers federal self-employment (Social Security + Medicare) tax on 92.35% of net earnings using 2026 rates. It does not include federal or state income tax. Half of your self-employment tax is deductible. This is not tax advice; consult a professional for your situation.
How 1099 self-employment tax works
When you're paid on a 1099 as a freelancer or contractor, no employer withholds taxes for you — so you're responsible for both halves of Social Security and Medicare, known as self-employment tax. The rate is 15.3%: 12.4% for Social Security up to the annual Social Security wage base ($184,500 in 2026) and 2.9% for Medicare with no cap. This tax applies to 92.35% of your net earnings (your income after business expenses). On top of self-employment tax, you'll also owe regular federal and state income tax, which is why setting aside 25–30% of what you earn is a safe habit — you can cross-check your hourly or annual pay with the salary calculator. If you expect to owe $1,000 or more for the year, the IRS generally wants those payments made quarterly.
Frequently asked questions
What is the self-employment tax rate?
Self-employment tax is 15.3% — 12.4% for Social Security (up to the annual wage base) plus 2.9% for Medicare. It applies to 92.35% of your net self-employment earnings.
How much should I set aside for 1099 taxes?
A common rule of thumb is to set aside 25–30% of your net income to cover self-employment tax plus federal and state income tax. Your exact rate depends on your tax bracket.
Do I have to pay quarterly?
If you expect to owe $1,000 or more, the IRS generally expects quarterly estimated tax payments. Dividing your estimated annual tax by four is a reasonable starting point.