Self-Employment Tax Calculator
Free self-employment tax calculator. Estimate SE tax (Social Security + Medicare) on freelance, gig, or business income with deductible half and net earnings breakdown.
1099 Tax Calculator
Free 2026 1099 tax calculator for independent contractors. Estimate income tax, self-employment tax, QBI deduction, and quarterly payments on 1099 net income.
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Total Tax
$17,800.03
17.8% of gross
Quarterly Payment
$4,450.01
4 payments/year
After-Tax Income
$67,199.97
$5,600.00/month
Set aside ~18% of every payment for taxes
SE Tax⧉
$12,010.12
SS $9,733.69 + Med $2,276.43
Income Tax⧉
$5,789.91
Federal brackets
QBI Deduction⧉
$12,578.99
20% of qualified business income
Deductible SE Half⧉
$6,005.06
Reduces AGI
Tax Calculation Waterfall
| 1099 Gross Income | $100,000.00 |
| − Business Expenses | ($15,000.00) |
| = Net Self-Employment Income | $85,000.00 |
| − Deductible SE Half | ($6,005.06) |
| = Adjusted Gross Income | $78,994.94 |
| − Standard Deduction | ($16,100.00) |
| − QBI Deduction | ($12,578.99) |
| = Taxable Income | $50,315.95 |
| Federal Income Tax | $5,789.91 |
| + Self-Employment Tax | $12,010.12 |
| = Total Tax | $17,800.03 |
Quarterly Payment Schedule
| Quarter | Due Date | Amount | Cumulative |
|---|---|---|---|
| Q1 | April 15, 2026 | $4,450.01 | $4,450.01 |
| Q2 | June 15, 2026 | $4,450.01 | $8,900.02 |
| Q3 | September 15, 2026 | $4,450.01 | $13,350.03 |
| Q4 | January 15, 2027 | $4,450.01 | $17,800.04 |
Estimates based on 2026 federal tax rates. State taxes not included. QBI deduction subject to income limits and business type. Consult a tax professional.
Planning notes, formulas, and examples
About the 1099 Tax Calculator
The 1099 Tax Calculator estimates your total tax bill on independent contractor income. Unlike W-2 employees, 1099 workers pay both the employee and employer share of Social Security and Medicare taxes (15.3% self-employment tax), plus federal income tax. Additional Medicare Tax can also apply at higher income levels.
However, 1099 workers also get valuable deductions: the employer-equivalent half of SE tax, business expenses, and potentially the 20% Qualified Business Income (QBI) deduction under Section 199A. These deductions can significantly reduce your effective tax rate.
Enter your 1099 gross income and business expenses to see your total tax liability, quarterly estimated payments, and how much to set aside from each payment. This page uses a simplified annual estimate rather than a full payroll-table replica, but it keeps the main self-employment tax mechanics visible so you can price your services and estimate your set-aside more realistically.
When This Page Helps
Independent contractors are often caught off guard by the self-employment tax. This calculator shows your complete tax picture — income tax, SE tax, QBI deduction, and the additional Medicare layer at higher incomes — so you can set aside the right amount and avoid underpayment penalties. Having clear quarterly targets keeps your cash flow predictable and your tax obligations manageable year-round.
How to Use the Inputs
- Enter your total 1099 gross income.
- Enter deductible business expenses.
- Select your filing status.
- Enter any other income (W-2, etc.) if applicable.
- View your total tax, quarterly estimates, and effective rate.
Formula used
Net 1099 Income = Gross − Business Expenses
SE Tax Base = Net × 92.35%
SE Tax = Base × 15.3% (12.4% SS up to $184,500 + 2.9% Medicare)
Deductible SE = SE Tax / 2
QBI Deduction = Min(20% × QBI, 20% × Taxable Income before QBI)
Income Tax = Brackets applied to (AGI − Std Deduction − QBI Deduction)Example Calculation
Result: Total tax: about $17,800 | Quarterly: about $4,450
Gross $100K minus $15K expenses = $85K net. SE base = $85K × 92.35% = $78,498. SE tax is about $12,005 using the 2026 Social Security wage base. Deductible SE half is about $6,003. The simplified QBI estimate is capped by taxable income before QBI, so only about $12,579 is allowed here. With the 2026 standard deduction, taxable income lands around $50K and federal tax is about $5,790. Total tax is roughly $17,800.
Tips & Best Practices
- Set aside 25-30% of your 1099 income for taxes — self-employment tax alone is ~14.1% of net income.
- Track every business expense carefully — home office, mileage, supplies, software, and professional development are all deductible.
- Pay quarterly estimated taxes to avoid underpayment penalties (due Apr 15, Jun 15, Sep 15, Jan 15).
- The QBI deduction can save you up to 20% of your net business income in federal tax when it applies under the current tax-year rules.
- Consider contributing to a Solo 401(k) or SEP-IRA to reduce taxable income.
- The deductible half of SE tax reduces your AGI, which can qualify you for other deductions and credits.
1099 vs. W-2: The Tax Difference
W-2 employees have FICA taxes split with their employer (each pays 7.65%). As a 1099 contractor, you pay the full 15.3%. However, you can deduct the employer half, deduct business expenses, and claim the QBI deduction. For many contractors, the effective tax rate difference is smaller than expected.
Maximizing 1099 Deductions
Common deductions include: home office ($5/sq ft simplified method up to 300 sq ft), vehicle expenses at the current IRS mileage rate, equipment and software, professional development, business insurance, and professional services. Keep receipts and use accounting software to track everything.
Retirement Savings for 1099 Workers
Solo 401(k) plans allow contributions up to $24,500 (employee) plus 20% of net self-employment income (employer portion), totaling up to $72,000 for 2026. SEP-IRAs allow up to 20% of net SE income. Both are powerful tools for reducing taxable income.
Sources & Methodology
Last updated:
Methodology
This worksheet starts with gross 1099 income, subtracts entered business expenses, applies self-employment tax to 92.35% of net earnings using the current Social Security wage base and Medicare rules, then deducts half of the self-employment tax before computing taxable income. It shows a simplified Section 199A / QBI deduction by capping the deduction at 20% of qualified business income and 20% of taxable income before the QBI deduction, then applies 2026 federal brackets and splits the estimated annual tax into four equal quarterly payments.
It is a planning worksheet, not a full Schedule C, Schedule SE, Form 8995, or Form 1040-ES engine. State tax, specified service trade limits, and every edge case in the QBI rules are outside the scope of this page.
Sources
- Rev. Proc. 2025-32 (Internal Revenue Service) — 2026 federal brackets, standard deduction, and inflation-adjusted amounts.
- Self-employment tax (Social Security and Medicare taxes) (Internal Revenue Service)
- About Form 8995, Qualified Business Income Deduction Simplified Computation (Internal Revenue Service)
Frequently Asked Questions
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) taxes that would normally be split between employee and employer. As a 1099 contractor, you pay both halves = 15.3% on 92.35% of net earnings. You can deduct the employer-equivalent half (7.65%) from your adjusted gross income.
The Qualified Business Income (QBI) deduction under Section 199A allows eligible 1099 workers and business owners to deduct up to 20% of their qualified business income. The exact limits depend on the tax year and income level, so this calculator uses a simplified estimate rather than a full phase-in computation.
A good rule of thumb is 25-30% of your gross 1099 income. This covers approximately 14% for self-employment tax, 10-15% for federal income tax (after deductions), and leaves a buffer for state taxes. As your income rises, the percentage may need to increase.
Quarterly estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year. You can pay using IRS Form 1040-ES or through the IRS Direct Pay website. Missing payments may result in an underpayment penalty.
Yes. Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents as an above-the-line deduction. This includes medical, dental, and qualified long-term care insurance. You cannot deduct more than your net self-employment income.
An S-Corp election can save SE tax by allowing you to pay yourself a reasonable salary (subject to FICA) and take remaining profits as distributions (not subject to SE tax). This generally becomes beneficial when net income exceeds $60,000-$80,000, but involves additional administrative costs.
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