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1099 tax calculator 2026: self-employment tax, income tax and quarterly payments

Contractors and freelancers owe three things on their profit: 15.3% self-employment tax (both halves of Social Security and Medicare on 92.35% of profit), federal income tax after the $16,100 standard deduction, half the SE tax and the 20% qualified business income deduction, and state income tax. This calculator does all three for your state and splits the total into the four estimated payments (April 15, June 15, September 15, January 15) — and shows the safe-harbor amount that avoids penalties.

Your numbers

1099 / self-employment income this year
Business expenses (deductible)
State
Filing status
W-2 wages this year (if any)
Last year total federal tax (for safe harbor)
20% qualified business income deduction

Result

Total tax for the year
Self-employment tax
Federal income tax
State + local income tax
Per quarterly payment
Safe-harbor quarterly
Set aside per $ of profit
Left after all tax
Federal taxable income
QBI deduction
Estimated paymentAmount

2026 tablesSource: IRS · SSA · state revenue departmentsChecked every Monday · change log · how it's calculated

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How 1099 income is taxed

  1. Net profit = income − deductible expenses (Schedule C). Expenses are the biggest lever: home office, equipment, software, mileage, health insurance premiums.
  2. Self-employment tax (Schedule SE): 12.4% Social Security on 92.35% of profit up to the $184,500 wage base (less any W-2 wages) plus 2.9% Medicare, +0.9% above $200,000. Half of it is deductible.
  3. Federal income tax on profit − ½ SE tax − standard deduction − 20% QBI deduction, through the 2026 brackets.
  4. State tax on roughly the same base; nine states charge none.
  5. Quarterly payments: the IRS expects tax as you earn. Pay ¼ of this year's expected total each quarter, or the safe harbor — 100% of last year's tax (110% if AGI over $150,000) — and you owe no penalty however the year ends.
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Frequently asked

How much should I set aside from each 1099 payment?

Use the “set aside per $ of profit” figure above — typically 25–35% of profit for a single filer earning $50K–$150K in a state with income tax, 20–30% without. Set it aside from each payment as it lands.

Do I have to make quarterly payments?

If you will owe $1,000 or more for the year, yes; otherwise the IRS charges an underpayment penalty (currently about 7% annualised). Paying the safe-harbor amount removes the risk.

Is the QBI deduction automatic?

Most sole proprietors and single-member LLCs qualify for the 20% deduction on qualified business income (below the income thresholds; certain service businesses phase out above them). Switch it off if your accountant says you don't qualify.

Does the calculator handle S-corps?

No — an S-corp pays you W-2 wages plus distributions; use the paycheck calculator for the wages and this one only for any remaining self-employment income.