1099 Tax Calculator (2026)
As an independent contractor or freelancer, you pay both halves of FICA (Schedule SE), federal income tax after the 20% QBI deduction, and quarterly estimated tax payments (Form 1040-ES). Here is what stays in your pocket.
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Your 1099 work
TY 2026Gross receipts minus business expenses — the line 31 number, not your invoices.
Job income counts too: it uses up the $184,500 Social Security cap first and any Additional Medicare it already withheld is subtracted.
What you actually keep
Sch. SE + 1040Of your $100,000 net profit, $75,149 stays with you once every federal tax on it is counted: self-employment tax of $14,130 (15.3% base rate before the 0.9% surtax), plus federal income tax of $10,722 after the 20% QBI deduction.
| Schedule SE line | Amount |
|---|---|
| Net earnings (profit × 92.35%) | $92,350 |
| Social Security 12.4% | $11,451 |
| Medicare 2.9% | $2,678 |
| Additional Medicare 0.9% | $0 |
| Self-employment tax | $14,130 |
| Form 1040 step | Amount |
|---|---|
| Less half of SE tax (above the line) | −$7,065 |
| Less QBI deduction (20%) | −$18,193 |
| Taxable income | $72,772 |
| Federal income tax | $10,722 |
| Total federal tax | $24,851 |
Nothing is withheld for you as a contractor — the $6,213 per quarter is what you send the IRS (due Apr 15, Jun 15, Sep 15, Jan 15) to avoid an underpayment penalty. State tax is not included here; your state’s page has its own calculator.
How 1099 taxes actually work
When you work as a W-2 employee, your employer pays half of your FICA taxes behind the scenes and withholds your income tax every pay period. When you work 1099(sole proprietorship, LLC, single-member contractor filing Schedule C), you are both the employer and the employee. That changes three things:
- Schedule SE (Self-Employment Tax). You pay the full 15.3% FICA equivalent on your net earnings (92.35% of net profit): 12.4% for Social Security up to the 2026 wage base of $184,500, and 2.9% for Medicare on every dollar. Contractors earning above $200,000 (single) or $250,000 (joint) also pay the 0.9% Additional Medicare Tax (Form 8959).
- The 50% SE Tax Deduction. On your Form 1040 (above the line), you get to deduct half of your self-employment tax before calculating your adjusted gross income (AGI). This makes up for W-2 workers not paying employer FICA out of pocket.
- The 20% QBI Deduction (IRC §199A). Qualified Business Income lets most contractors deduct up to 20% of their net business income right off their taxable income, shielding a fifth of their profit from federal income tax.
Because no one is withholding your taxes, the IRS expects you to send quarterly estimated tax payments (Form 1040-ES) four times a year (April 15, June 15, September 15, January 15) if you expect to owe $1,000 or more. Missing them triggers an underpayment penalty.
Worked example — $100,000 net profit, single
Take a freelancer with $100,000 in net profit (Schedule C line 31) and filing as single for tax year 2026. The engine computes:
| Step | Amount | Notes |
|---|---|---|
| Net profit (Schedule C) | $100,000 | Gross receipts minus business expenses |
| Net earnings (92.35%) | $92,350 | Schedule SE line 4a |
| Social Security (12.4%) | $11,451 | 12.4% of net earnings |
| Medicare (2.9%) | $2,678 | 2.9% of net earnings |
| Self-employment tax | $14,130 | Schedule SE line 12 |
| Half SE tax deduction | −$7,065 | Above-the-line deduction on Form 1040 |
| QBI deduction (20%) | −$18,193 | IRC §199A |
| Taxable income | $72,772 | After standard deduction ($16,100) |
| Federal income tax | $10,722 | Progressive brackets |
| Total tax & you keep | Total $24,851 · Keep $75,149 | Effective rate 24.9% |
Quarterly estimated payments come out to $6,213 per quarter. Note that this covers federal and FICA only — state income tax is separate.
What this ignores
- State and local income taxes. Contractors owe state income tax where the work is performed; check our 50-state reference for your state rate.
- S-Corp elections. If your net profit is high ($100k+), an S-Corp structure lets you take a reasonable salary and dividends to cut self-employment tax. This calculator assumes a sole proprietorship / Schedule C.
- W-2 overlap limits. If you hold a W-2 job and freelance on the side, your W-2 wages use up the Social Security wage base first; the calculator handles this if you fill in the W-2 field.
- Other deductions (Health insurance for self-employed, SEP-IRA / Solo 401k, local taxes, credits) are outside this page.
Where to look next
- 50 states — find your state tax rate to add to your 1099 burden.
- Bonus tax calculator — how supplemental wages are withheld on a W-2.
- Take-home pay calculator — standard W-2 salary take-home pay.
- Equivalent salary — what salary in another state matches your current take-home.