1099 Tax Calculator — Self-Employment Tax Estimator
Estimate self-employment tax, income tax, a rough quarterly reserve, and take-home pay as a 1099 contractor. Planning estimate with stated limits.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
SE Taxable = Net Earnings × 92.35%; Social Security is capped at the 2026 wage base; Medicare is uncapped; Income Tax = Net Earnings × Rate%; Rough quarterly reserve = Total Estimate ÷ 4
For $80,000 in 1099 income with $10,000 in expenses and a 22% income tax rate: net earnings = $70,000, SE tax = ~$9,891, income tax = ~$15,400, and the rough quarterly reserve is ~$6,323.
Methodology & assumptions
Last updated: 2026-07-29Calculation method
Estimates base self-employment tax using 12.4% Social Security on 92.35% of net earnings up to the 2026 wage base plus 2.9% Medicare, then adds income tax using the rate entered. The quarterly figure is a cash-flow reserve, not a payment instruction.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Planning estimate only. It does not collect filing status or W-2 wages and therefore cannot combine the Social Security wage base or calculate Additional Medicare Tax. It also omits withholding, safe-harbor and annualized-income rules, QBI, health-insurance and retirement adjustments, and credits. Consult a CPA or EA.
Input definitions
- 1099 income (annual): Total income from 1099 contracts before expenses.
- Business deductions: Deductible expenses: home office, equipment, travel, software, etc.
- Estimated income tax rate: Your marginal tax bracket rate for federal and state income tax combined.
Frequently asked questions
How much should a 1099 contractor set aside for taxes?+
A common rule of thumb is 25-30% of net income. This covers ~15.3% self-employment tax plus ~10-15% income tax depending on your bracket. High earners should set aside 30-35%.
What is the self-employment tax rate for 2026?+
The base SECA rate is 15.3%: 12.4% for Social Security up to the combined 2026 wage base of $184,500, plus 2.9% Medicare without that cap. Only 92.35% of net self-employment income is generally subject to SE tax. Additional Medicare Tax can apply above a filing-status threshold.
Do I need to make quarterly estimated tax payments?+
You may need estimated-tax payments if your expected balance due, withholding, credits, safe-harbor target, and IRS exceptions indicate one. Calendar-year due dates are generally April 15, June 15, September 15, and January 15; verify the applicable year in IRS Publication 505.
What deductions can reduce my 1099 tax bill?+
Key deductions: home office, equipment, software subscriptions, health insurance premiums, retirement contributions (SEP IRA, Solo 401k), mileage, and 50% of self-employment tax itself. The QBI deduction can also reduce taxable income by up to 20%.
How is 1099 different from W-2?+
As a 1099 contractor, you pay both the employee AND employer portions of Social Security and Medicare tax (15.3% total vs the 7.65% you'd pay as a W-2 employee). However, you can deduct business expenses that employees cannot.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.