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.
How to fill in the fields
- 1099 net profit
- What you billed in the year minus deductible business expenses — Schedule C, line 31. Don't enter gross receipts: the result will be overstated.
- W-2 wages
- Only if you also have a job. Those wages already paid Social Security, and the $184,500 cap is shared, so they shrink the 12.4% part that applies to your self-employment income. Medicare has no cap.
- Results
- Your annual self-employment tax, a quarter of it as a per-quarter reference, and a rough 25–30%-of-profit range per quarter that also covers income tax.
The formula
- Base = net profit × 92.35%
- Social Security = min(base, $184,500 − W-2 wages) × 12.4%
- Medicare = base × 2.9%
- Self-employment tax = Social Security + Medicare
Two worked examples
A freelance designer with $60,000 of net profit and no other job: base $55,410; Social Security $6,871; Medicare $1,607; self-employment tax $8,478, half of which ($4,239) comes off their federal taxable income.
The same profit alongside a job paying $150,000 in W-2 wages: only $34,500 of the Social Security cap is left, so that part drops to $4,278 and the total to $5,885 — $2,593 less.
Estimated tax due dates (tax year 2026)
Self-employed people pay the year's tax in four installments with Form 1040-ES. For tax year 2026 they are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. Paying late or too little can trigger an underpayment penalty even if you end up owing nothing at filing. Details at IRS Form 1040-ES.
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.