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1099 Tax Calculator

Estimate your total federal tax and quarterly payments as a 1099 contractor or self-employed business owner.

By Priya Raman, Contributing Writer, Policy & Regulation · Updated 2026-07-02

Details

1099 income ($)

Business expenses ($)

Other W-2 income ($)

Filing status

Results

Total estimated tax -

Self-employment tax -

Federal income tax -

Effective rate -

Quarterly payment -

Educational estimate using 2026 thresholds. Not tax advice.

How it works

The calculator computes self-employment tax on your net profit, then estimates federal income tax on income after the deductible half of SE tax, the standard deduction, and a simplified 20 percent QBI deduction. Total tax is divided into four quarterly estimated payments.

Set aside 25 to 30 percent: many 1099 workers reserve about a quarter to a third of net income from each payment, as it arrives. The alternative is a large bill in April, which is both predictable and avoidable.

Free Section 199A tools

Calculate your QBI deduction, check eligibility, or compare sole proprietor vs. S-corp self-employment tax.

See all calculators

Two taxes, not one

1099 income is subject to two separate taxes. Self-employment tax comes first: 15.3 percent on 92.35 percent of net profit for Social Security and Medicare. Then ordinary federal income tax applies to what remains after the deductible half of SE tax, the standard deduction, and a simplified 20 percent QBI deduction. This calculator estimates both. The combined effective rate frequently surprises first-year contractors.

A concrete example

Take $90,000 in 1099 income and $10,000 in expenses, filing single. Net profit comes to $80,000. Self-employment tax runs about $11,304. After subtracting the deductible half of that ($5,652), the standard deduction, and the 20 percent QBI deduction, federal income tax lands in the low five figures. Add both taxes together, divide by four, and you have your quarterly payment estimate.

Quarterly payments

The IRS expects payment as income arrives. Four times per year: mid-April, mid-June, mid-September, and the following mid-January. Missing a deadline does not produce a criminal penalty, but it does produce an underpayment penalty. That is why the 25 to 30 percent set-aside rule exists: it keeps the quarterly payments covered without requiring a separate accounting exercise each quarter.

Trimming the bill

Claim legitimate business expenses: home office (actual method or simplified), business mileage, software subscriptions, professional supplies. Each reduces net profit and therefore both SE tax and income tax.
A SEP-IRA lets you contribute up to 25 percent of net self-employment earnings (after SE deduction). A solo 401(k) allows even larger contributions for high earners. Both reduce taxable income in the year of contribution.
Keep organized, contemporaneous records. If the IRS questions a deduction, "I estimated from memory" is not a defense. The documentation is what holds the claim together.

Good to know

FAQs

How much tax do 1099 workers pay?

Self-employment tax (15.3 percent on 92.35 percent of net profit) plus federal income tax. Combined effective rates often fall between 20 and 35 percent depending on income level, filing status, and deductions. Use this calculator for a more specific estimate.

What are quarterly taxes?

The IRS requires estimated tax payments four times a year if you expect to owe $1,000 or more. Due dates are generally mid-April, mid-June, mid-September, and mid-January of the following year. Missing a deadline triggers an underpayment penalty.

Does this include the QBI deduction?

Yes, as a simplified flat 20 percent of net profit. The actual deduction depends on your income level, business type, W-2 wages paid, and whether you are above the phase-out thresholds. Use the QBI calculator for the full calculation.

Can I lower my 1099 taxes?

Yes, through legitimate business deductions and retirement contributions. Deductible expenses reduce net profit, which lowers both self-employment tax and income tax. Retirement contributions (SEP-IRA, solo 401(k)) reduce taxable income further. Consult a CPA to confirm what qualifies for your situation.

Is this tax advice?

No - it’s an estimate for planning. Confirm with a tax professional.