2026 tax year · US · Updated June 18, 2026

1099 Tax Calculator

1099 income has no tax withheld, so it is on you to set the money aside. Enter what you earned and what you spent, and this calculator shows your self-employment tax, your federal income tax, the share to set aside, and the quarterly payment that keeps you penalty-free.

Your numbers

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Everything on your 1099-NEC and 1099-K forms, before expenses.
$
Mileage, supplies, software, fees — what you spent to earn the income.
$
Positions your 1099 income at the right tax bracket. 0 if 1099 is all you earn.

Your 2026 tax on 1099 income

Set aside for taxesAbout 20.1% of your $42,000 net profit
$8,438
Pay each quarterFour equal estimated payments (Form 1040-ES)
$2,110
Self-employment tax15.3% Social Security + Medicare on 92.35% of net profit
$5,934
Federal income taxOn your 1099 profit, after the half-SE deduction and standard deduction
$2,504
Total federal tax
$8,438
Net profit1099 income minus business expenses (your Schedule C bottom line)
$42,000
Take-home after tax
$33,562

Federal only; most states tax 1099 income too (see our per-state side hustle pages). Estimates exclude the QBI deduction, tax credits, and itemized deductions, which usually lower the bill.

How 1099 tax is calculated

Two separate taxes apply to 1099 income. First is self-employment tax: 15.3% for Social Security and Medicare on 92.35% of your net profit. On a W-2 your employer pays half of this; as a contractor you pay all of it, which is the part that surprises people. Second is ordinary federal income tax, charged on the same profit after the deductible half of the self-employment tax and your standard deduction come off.

The number that matters most is your net profit — 1099 income minus business expenses. Both taxes are figured on net profit, not gross, so every legitimate deduction (mileage, home office, supplies, fees) lowers the bill twice over. Track them with our mileage calculator and home office calculator.

Because nothing is withheld, the IRS expects quarterly estimated payments when you will owe $1,000 or more. Weighing a contractor offer against a salary? The 1099 vs W-2 calculator shows the contractor pay that truly matches a salary once you cover your own payroll taxes and benefits.

These are estimates, not tax advice. The model excludes tax credits, the QBI deduction, and itemized deductions (each usually lowers the bill), and covers federal tax only; most states tax 1099 income too.

Where these numbers come from

The bill is computed as self-employment tax plus the federal income tax attributable to your net profit, after the half-SE deduction and standard deduction. Every rate and threshold is transcribed from these sources:

Constants last verified against these sources on June 18, 2026. Every value is also pinned by an automated test suite that fails if a rate in the calculator drifts from the figure we transcribed from the source.

Frequently asked questions

Do I have to pay taxes on 1099 income?
Yes. Money reported on a 1099 is self-employment income, and it is taxable whether or not a form actually shows up in your mailbox. You owe self-employment tax (15.3% for Social Security and Medicare) plus federal income tax on your net profit — that is, your 1099 income after deducting business expenses.
How much should I set aside for 1099 taxes?
A common rule of thumb is to set aside 25-30% of your net profit for federal taxes, but the right number depends on your total income and filing status. The calculator above shows your exact effective rate. If you also owe state income tax, or your other income pushes you into a higher bracket, set aside more.
Do I pay both self-employment tax and income tax on 1099 income?
Yes, both. Self-employment tax is the Social Security and Medicare an employer would normally split with you on a W-2 — as a contractor you pay the full 15.3% yourself, on 92.35% of your net profit. On top of that, your profit is added to your other income and taxed at your regular federal income tax rate. You do get to deduct half of the self-employment tax before the income tax is figured.
What is the difference between 1099 and W-2 taxes?
On a W-2, your employer withholds income tax from every paycheck and pays half of your Social Security and Medicare. On a 1099, nothing is withheld and you cover the full 15.3% yourself, which is why 1099 work needs a bigger tax set-aside at the same gross pay. Our 1099 vs W-2 calculator compares the two side by side and shows the contractor pay that truly matches a salary.
When do I have to pay taxes on 1099 income?
Because no one withholds tax for you, the IRS expects quarterly estimated payments if you will owe $1,000 or more for the year — generally due April 15, June 15, September 15, and January 15. Paying quarterly avoids an underpayment penalty at filing. Our quarterly tax calculator turns your expected profit into the exact per-quarter amount.
What expenses can I deduct from 1099 income?
Any ordinary and necessary cost of doing your work: business mileage, a home office, supplies, software and subscriptions, platform and payment fees, advertising, and a portion of your phone and internet. Every dollar of legitimate expense lowers your net profit, which lowers both your self-employment tax and your income tax. Keep receipts and a mileage log to back it up.
Do I owe taxes on a 1099 for less than $600?
Yes. The $600 figure is only the point above which a client must send you a 1099-NEC — it is not a tax-free allowance. Your self-employment income is taxable from the first dollar, even if no form is ever issued. Report all of it on Schedule C.
Does this calculator include state income tax?
No, it is federal only (self-employment tax plus federal income tax). Most states tax 1099 income as well, and many expect their own quarterly estimated payments. Our per-state side hustle calculators add each state's 2026 income tax and link to its official payment portal.

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