What this 1099 tax calculator includes
- Net profit = 1099 income − business expenses.
- Self-employment tax = 15.3% of 92.35% of net profit (Social Security portion capped at the $184,500 wage base, reduced by W-2 wages), plus 0.9% Additional Medicare Tax at high incomes.
- Adjusted gross income = W-2 wages + net profit − half of SE tax − retirement contributions − health insurance premiums.
- Taxable income = AGI − standard deduction ($16,100 single, $32,200 married filing jointly for 2026) − the 20% qualified business income (QBI) deduction.
- Federal income tax from the 2026 brackets, and an estimated state tax at your flat rate on AGI.
2026 federal tax brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 |
| 37% | Over $640,600 | Over $768,700 |
How much should I set aside for 1099 taxes?
A common rule of thumb is 25% to 30% of each payment, but the right number depends on your income and state. The "set aside" result above divides your total estimated tax by your gross 1099 income, so you can move that percentage of every invoice into a separate savings account.
Simplifications to know about
This estimate uses the standard deduction, a flat state rate, and a simplified QBI deduction (20% of qualified business income, limited to 20% of taxable income). It doesn't include tax credits (child tax credit, education credits), itemized deductions, capital gains, local taxes, or QBI limits for specified service businesses above roughly $200,000 (single) / $400,000 (joint) of taxable income.
Frequently asked questions
How much tax do I pay on 1099 income?
You pay 15.3% self-employment tax on about 92% of your profit, plus federal income tax at your bracket rate and any state income tax. For many freelancers the total comes to 25% to 35% of profit.
Do I have to pay taxes if I made less than $600 on a 1099?
Yes. The $600 threshold only determines whether the client must send you a 1099-NEC. All self-employment income is taxable, and you owe SE tax once net earnings reach $400.
What is the QBI deduction?
The qualified business income deduction lets many sole proprietors deduct up to 20% of their business profit when calculating income tax. It doesn't reduce self-employment tax.
Are these 2026 numbers?
Yes. Brackets and the standard deduction use the IRS 2026 inflation adjustments, and the Social Security wage base is $184,500 for 2026.
Last reviewed: 2026-10-09