1099 tax calculator for contractors
As a 1099 contractor you pay self-employment tax of about 15.3% on your profit, plus federal income tax at your regular rate after the standard and QBI deductions. Enter your 1099 income and expenses to see the total for 2026 and how much to set aside each quarter.
Updated November 2026
Calculator
Federal only, using 2026 brackets, the standard deduction and the QBI deduction. Assumes income under the QBI limits and no other credits. State tax not included. An estimate, not tax advice.
What taxes does a 1099 contractor pay?
No employer withholds anything from 1099 pay, so two taxes land on you. Self-employment tax covers Social Security and Medicare, at 15.3% of 92.35% of your profit. Federal income tax applies to the same profit at your regular rates, after the standard deduction ($16,100 single or $32,200 married filing jointly for 2026), half of your self-employment tax and the qualified business income deduction of up to 20%.
Most states tax the same income too. Texas, Florida and a handful of others don't.
How much should I set aside from each 1099 payment?
A common rule is 25% to 30% of every payment, and more at higher incomes. The calculator gives you your own number. Move it to a separate savings account the day the money lands, so it's there when the quarterly payments come due in April, June, September and January.
What can I deduct as a contractor?
- A home office used regularly and only for work
- Business mileage, at 72.5 cents a mile through June 2026 and 76 cents from July 1
- Software, equipment, phone and internet (the business share)
- Health insurance premiums, if no employer plan is available to you
- Retirement contributions to a SEP IRA or solo 401(k)
Our freelancer tax deductions post covers more, and the self-employment tax calculator breaks out that part alone.
Sources
- IRS: Self-employment tax
- IRS: Schedule SE (Form 1040)
- Social Security Administration: Contribution and benefit base
- IRS: Qualified business income deduction
General information, not tax advice for your situation.
How much tax do I pay on $50,000 of 1099 income?
For a single filer with no other income and no expenses in 2026, it's roughly $7,065 of self-employment tax plus about $2,700 of federal income tax. The calculator gives your exact estimate.
Do I have to pay quarterly taxes on 1099 income?
Usually, yes, if you expect to owe $1,000 or more for the year. Payments are due April 15, June 15, September 15 and January 15.
Is the QBI deduction included?
Yes, at up to 20% of your qualified business income, assuming your taxable income is under the limits where specified service businesses lose it.
Does the calculator include state tax?
No. It's federal only. If your state has an income tax, set aside more.
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