Self-Employment & 1099 Tax Calculator 2026

Self-employed people pay both halves of Social Security and Medicare: 15.3% on 92.35% of net profit, with the Social Security part capped at $184,500 in 2026. Half of that tax is deductible.

Updated 2026-10-03 · 2026 IRS figures

Estimated total tax$18,830$4,708 per quarter (Form 1040-ES) · 23.5% of profit

Self-employment tax (15.3% on 92.35%)	$11,304
Additional Medicare	-$0
Deduction for half of SE tax	$5,652
Federal taxable income	$58,248
Federal income tax	$7,527
Kept after tax	$61,170

Kept $61,170 76.5%
Federal income tax $7,527 9.4%
Self-employment tax $11,304 14.1%

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Key 2026 federal tax facts

For 2026, Social Security tax of 6.2% applies to wages up to $184,500, up from $176,100 in 2025.
Medicare tax of 1.45% applies to all wages with no cap, plus a 0.9% Additional Medicare Tax on wages above $200,000 ($250,000 for married couples filing jointly).
The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.
The seven federal income tax rates of 10%, 12%, 22%, 24%, 32%, 35% and 37% were made permanent by the One, Big, Beautiful Bill Act.
In 2026 the 37% top rate applies to taxable income over $640,600 for single filers and over $768,700 for married couples filing jointly.
The Child Tax Credit is $2,200 per qualifying child for 2026, of which up to $1,700 is refundable.

What a 1099 contractor actually owes: three separate taxes

A freelancer’s tax bill has three layers that are calculated separately and then added together: self-employment tax (Social Security and Medicare), federal income tax, and state income tax where your state has one. Nothing is withheld from 1099 income, so all three are your job to pay during the year.

Take a single contractor with $80,000 of net profit after business expenses. Self-employment tax is figured on 92.35% of profit, or $73,880, giving $11,304. Half of that, $5,652, is deducted when computing AGI, and after the $16,100 standard deduction the federal income tax is $7,527. The federal total is $18,830, or 23.5% of profit, before any state tax.

Net profit	SE tax	Federal income tax	Federal total	Share of profit
$40,000	$5,652	$2,281	$7,933	19.8%
$80,000	$11,304	$7,527	$18,830	23.5%
$150,000	$21,194	$22,191	$43,385	28.9%

Why only 92.35% of profit is taxed

An employee pays 7.65% and the employer pays another 7.65%, but the employer’s share is never counted as the employee’s wages. To put the self-employed on the same footing, Schedule SE first takes 7.65% off net profit: 100% − 7.65% = 92.35%. The 15.3% rate then applies to that reduced base.

The Social Security part (12.4%) stops once combined wages and self-employment earnings reach $184,500 for 2026. If you also have a W-2 job, your wages use up the wage base first, so a side business on top of a high salary may owe only the 2.9% Medicare part. The 0.9% Additional Medicare Tax starts at $200,000 of combined earnings for single filers, $250,000 for joint filers and $125,000 for married filing separately.

Quarterly estimated tax: 2026 due dates and the safe harbors

You generally must make estimated payments if you expect to owe $1,000 or more when you file. The penalty for paying too little is computed separately for each quarter, so paying everything in January does not erase penalties for earlier quarters.

You avoid the underpayment penalty if your withholding and estimated payments cover the smaller of 90% of this year’s tax or 100% of last year’s tax. If last year’s AGI was over $150,000 ($75,000 married filing separately), the prior-year test rises to 110%. The prior-year rule is the easiest to use when income is growing: divide last year’s total tax by four and pay that each quarter.

You can skip the January payment if you file your 2026 return by February 1, 2027 and pay the full balance with it.
If at least two-thirds of your gross income comes from farming or fishing, you can make a single payment by January 15 or file and pay by March 1 instead.
If income arrives unevenly (a big contract in the autumn, for example), the annualized income installment method on Form 2210 Schedule AI can reduce or remove penalties for the early quarters.
Pay through IRS Direct Pay, EFTPS, your IRS online account, or by mailing a Form 1040-ES voucher.

Payment	Covers income earned	Due date
1st	Jan 1 – Mar 31, 2026	April 15, 2026
2nd	Apr 1 – May 31, 2026	June 15, 2026
3rd	Jun 1 – Aug 31, 2026	September 15, 2026
4th	Sep 1 – Dec 31, 2026	January 15, 2027

Which deductions cut which tax

Not every write-off reduces self-employment tax. Business expenses on Schedule C lower your net profit, so they reduce both self-employment tax and income tax. Deductions taken later in the return only reduce income tax.

Lower both taxes: ordinary and necessary business expenses such as software, equipment, business mileage, a qualifying home office, and professional fees.
Lower income tax only: the deduction for half of self-employment tax, self-employed health insurance premiums, SEP-IRA or solo 401(k) contributions, and the qualified business income (QBI) deduction.
The QBI deduction is up to 20% of qualified business income from a sole proprietorship, partnership or S corporation. It is figured on Form 8995 or 8995-A and is available whether or not you itemize. This calculator does not apply it, so eligible owners will owe less income tax than shown.

Common mistakes freelancers make in their first year

Setting aside only 15.3% is the most frequent one. As the table shows, federal tax alone takes 23.5% of an $80,000 profit, and state income tax comes on top in most states. Another is forgetting that self-employment tax applies from the first dollar once net earnings reach $400; there is no standard deduction against it.

Mixing personal and business spending makes it harder to prove expenses, and treating gross receipts (the total on your 1099-NEC or 1099-K forms) as profit overstates the tax. Keep a separate account, record expenses as they happen, and base your quarterly payments on profit, not on deposits.

Frequently asked questions

What is the self-employment tax rate?

15.3%: 12.4% Social Security on up to $184,500 and 2.9% Medicare on all net earnings, applied to 92.35% of net profit. 0.9% Additional Medicare applies above $200,000 (single).

Do I have to pay quarterly estimated taxes?

Generally yes if you expect to owe $1,000 or more when you file. Payments are due in April, June, September and January using Form 1040-ES.

When do I owe self-employment tax?

When net self-employment earnings are $400 or more for the year.

How much should I set aside from each 1099 payment?

Federal tax alone is about 24% of profit for a single filer on $80,000. Add your state’s income tax rate. Saving 25–30% of each payment is a common starting point; check it against your actual profit each quarter.

Does the QBI deduction reduce self-employment tax?

No. Self-employment tax is figured on Schedule SE from your net business profit. The QBI deduction is taken after adjusted gross income, so it lowers income tax only.

I have a W-2 job and a side business. Do I owe Social Security twice?

Not above the cap. Your W-2 wages count toward the $184,500 Social Security wage base first, and Schedule SE applies the 12.4% only to the part of your self-employment earnings that fits under the remaining room. Medicare (2.9%) applies to all of it.

What happens if I miss a quarterly payment?

The IRS charges an underpayment penalty, figured like interest on the amount that was short for each quarter and the number of days it was late. Form 2210 calculates it. Paying as soon as you notice limits the cost.

Do church employees pay self-employment tax?

Church employees whose employer is exempt from Social Security and Medicare owe self-employment tax if they were paid $108.28 or more in the year, unless they are personally exempt.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.