1099 tax calculator
Estimate the self-employment tax on your 1099 income and see how much to set aside each quarter.
Optional. These wages reduce the Social Security wage base still available to self-employment income.
Estimate only — covers federal self-employment (Social Security + Medicare) tax on 92.35% of net profit using 2026 rates. If that calculated net-earnings amount is below $400, this calculator produces no self-employment tax. It excludes federal/state income tax, optional Schedule SE methods, church employee income and the additional 0.9% Medicare tax that may apply above filing-status thresholds. Half of your self-employment tax is generally deductible. This is not tax advice.
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 profit (income after business expenses). You may also owe federal income tax and, depending on where you live, state income tax. Setting aside 25–30% of net profit can be a starting point, but it may be insufficient depending on your other income, deductions, bracket and state — you can cross-check your hourly or annual pay with the salary calculator. If you expect to owe $1,000 or more after withholding and credits, you may need estimated payments; check the IRS safe-harbor rules.
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 25–30% reserve can be a starting point, but it may be insufficient for higher earners or high-tax states. Your actual amount depends on filing status, other income, deductions, credits, state taxes and prior-year safe-harbor rules.
Do I have to pay quarterly?
You may need estimated payments if you expect to owe $1,000 or more after withholding and refundable credits. The actual schedule and amount depend on IRS safe-harbor rules and income timing; simply dividing by four is only a rough starting point.