1099 tax calculator
For freelancers, contractors and gig workers: how much of every client payment belongs to the IRS and your state, and what to send each quarter.
Ask about these numbers
An AI explainer reads the figures on this page and answers in plain English. Your question and inputs are sent to it only when you press Ask; nothing is stored.
Quarterly estimated payments
To stay clear of the underpayment penalty, pay at least the safe-harbor amount: the smaller of 90% of this year’s federal tax or 100% of last year’s (110% if your AGI tops $150,000), minus any W-2 withholding.
| Due date | Federal (safe harbor) | Federal (full) |
|---|---|---|
| Apr 15, 2026 | $3,383 | $3,758 |
| Jun 15, 2026 | $3,383 | $3,758 |
| Sep 15, 2026 | $3,383 | $3,758 |
| Jan 15, 2027 | $3,383 | $3,758 |
Pay with IRS Direct Pay or Form 1040-ES. Most states with an income tax have their own quarterly schedule. Enter last year’s tax above for the 100%/110% option.
Why freelancers get surprised in April
An employee’s taxes leave with every paycheck. A freelancer’s don’t, and there is a second tax on top: self-employment tax, the 15.3% that pays for Social Security and Medicare. On $73,000 of profit that alone is $10,315.
Two deductions soften it. Half of SE tax is deducted from income, and the 20% qualified business income deduction usually applies, so your income tax is figured on much less than your profit. The tape already includes both.
A simple habit: move the percentage above into a separate savings account the day each client pays. See the SE tax step by step on the self-employment tax calculator.
Questions people ask
How much should I set aside for taxes on 1099 income?
Most freelancers need 25% to 35% of profit. That covers 15.3% self-employment tax (about 14.1% of profit after the 92.35% step), federal income tax at your bracket, and state tax. The calculator gives a percentage for your exact situation.
What is the 1099 tax rate?
There is no single 1099 rate. You pay self-employment tax of 15.3% on 92.35% of profit, plus ordinary income tax on profit after deductions (10% to 37%), plus any state tax. A single freelancer with $60,000 of profit in 2026 pays roughly 23% all-in federally.
Do I need to make quarterly estimated tax payments?
Yes, if you expect to owe $1,000 or more when you file. Payments for 2026 are due April 15, June 15 and September 15, 2026, and January 15, 2027. You avoid penalties by paying at least 100% of last year’s tax (110% if last year’s AGI was over $150,000) or 90% of this year’s, spread evenly.
Does the $600 1099 threshold still apply?
For payments made in 2026 the reporting threshold for 1099-NEC and 1099-MISC rises to $2,000 under the One Big Beautiful Bill Act, and 1099-K reverts to $20,000 and 200 transactions. But all self-employment income is taxable whether or not you receive a form.
What is the QBI deduction?
Most sole proprietors can deduct up to 20% of qualified business income, which the calculator applies automatically below the income threshold ($201,775 single, $403,550 joint in 2026). Above it, use the QBI calculator for the wage and service-business limits.