1099 Tax Calculator

Taxes on 1099 income

A 1099 reports income paid to you as an independent contractor — no employer withheld federal tax, Social Security or Medicare. That means you're responsible for both the 15.3% self-employment tax and federal income tax on your profit.

Because nothing is withheld, the IRS expects you to pay as you go through quarterly estimated payments. A good rule of thumb is to set aside 25–30% of each payment for taxes; the calculator above gives you a tailored quarterly figure.

2026 quarterly payment deadlines

Note the periods are not equal quarters — Q2 covers two months and Q3 covers three. When a due date falls on a weekend or federal holiday it moves to the next business day.

The safe-harbor rule: how to avoid an underpayment penalty

You generally avoid a penalty if your payments during the year cover either 90% of this year's tax or 100% of last year's total tax (110% if your prior-year AGI was above $150,000). If your 1099 income is unpredictable, paying the prior-year figure in four equal instalments is the simplest way to stay inside the safe harbor.

1099-NEC, 1099-MISC and 1099-K — which one you get

• 1099-NEC — non-employee compensation. What most freelancers and contractors receive from a client who paid them $600 or more in the year.
• 1099-MISC — rents, royalties, prizes and other payments that are not for services performed.
• 1099-K — payments settled through a card processor or marketplace (Stripe, PayPal, Upwork). Income can appear on both a 1099-K and a 1099-NEC, so reconcile them before filing to avoid double-counting.

You owe tax on your net profit regardless of whether a form arrives — the forms are how the IRS is told, not what creates the liability.

Deductions that lower the number in the calculator

The calculator starts from net profit, so every legitimate business expense you subtract first reduces both your income tax and your self-employment tax. Common ones for 1099 workers: home-office space, the business share of phone and internet, software subscriptions, mileage or vehicle costs, professional insurance, and health insurance premiums for the self-employed. A SEP-IRA or solo 401(k) contribution reduces income tax (but not SE tax).

Want the SE tax formula itself broken down step by step? Self-employment tax calculator.

1099 tax calculator FAQ

How much tax do I pay on 1099 income?

On 1099 income you pay self-employment tax (15.3% for Social Security and Medicare) plus federal income tax on your net profit. There's no employer withholding, so you typically pay it yourself in quarterly estimated payments.

When are quarterly estimated taxes due?

Federal estimated taxes are generally due four times a year — around April 15, June 15, September 15 and January 15 of the following year. This calculator divides your estimated total tax into four equal payments.

How much should I set aside from each 1099 payment?

A common rule of thumb is 25–30% of each payment, more if you also owe state income tax or earn a high income. The calculator above gives a figure based on your own net profit and filing status.