Quick answer
On $95,000 of 1099 income with $12,000 of expenses, a single filer owes about $24,018 in 2026: $11,728 of self-employment tax, $8,140 of federal income tax and $4,150 of state tax at 5%. That is 28.9% of net income, so set aside 29 cents of every dollar and pay about $6,004 a quarter.
How the 1099 Tax Calculator works, step by step
Enter your gross 1099 income and your business expenses. The calculator subtracts expenses first to get net self-employment income, because every dollar of expenses lowers both your income tax and your self-employment tax. Track expenses through the year: the difference between $95,000 gross and $83,000 net is worth thousands of dollars of tax. That is the single biggest lever a freelancer has over their tax bill.
Self-employment tax is 15.3% of 92.35% of net profit: 12.4% for Social Security and 2.9% for Medicare. The Social Security part stops once combined wages and self-employment earnings reach the 2026 wage base of $184,500, and any W-2 wages you enter use up that room first. Below the cap, the tax works out to 14.13% of net profit. You must file Schedule SE once net earnings reach $400 for the year.
Half of your self-employment tax is deductible from income before the federal brackets apply, which softens the blow: on the example below it removes $5,864 from taxable income. The calculator then applies the $16,100 single or $32,200 joint standard deduction and the 2026 federal brackets to what is left. If you also have W-2 wages, the calculator attributes only the extra federal tax the 1099 income causes.
The 20% qualified business income deduction is not included in the result, so treat the federal figure as a ceiling. Made permanent by the 2025 tax law, it lets most sole proprietors deduct up to 20% of qualified business income, with limits phasing in above $201,750 of taxable income single or $403,500 joint in 2026. It lowers income tax only, never self-employment tax.
Nobody withholds from a 1099 check, so the IRS expects quarterly estimated payments: April 15, June 15 and September 15, 2026, then January 15, 2027. The calculator divides your total by four for the quarterly figure. Miss a date and the underpayment penalty is figured separately for each quarter, so a big January payment does not erase a skipped April one.
The formula
Net income = 1099 income minus business expenses. Self-employment tax base = net income times 92.35%. Self-employment tax = 12.4% of the base up to the $184,500 wage base, plus 2.9% of the whole base. Federal tax = bracket tax on (net income minus half the self-employment tax minus the standard deduction). Total = self-employment tax plus federal tax plus state tax.
Worked example — try it on the calculator above
Worked example: $95,000 of 1099 income, $12,000 of expenses
A single freelancer earns $95,000 and spends $12,000 on business expenses, leaving $83,000 of net income. The self-employment tax base is 92.35% of that, or $76,651. Self-employment tax is $11,728: $9,505 of Social Security and $2,223 of Medicare. Half of it, $5,864, is deductible, so taxable income is $61,036 after the $16,100 standard deduction, and federal tax is $8,140. State tax at 5% of net income is $4,150. The total bill is $24,018, or 28.9% of net income, leaving $58,983. The quarterly payment is about $6,004. Note that the 20% QBI deduction could cut the federal part further: on $77,136 of qualified business income it would be worth up to $15,427 of extra deductions, saving roughly $3,394 of federal tax at a 22% marginal rate.
Frequently Asked Questions
Do I owe tax if I never received a 1099 form?
Yes. Income is taxable whether or not a form arrives. For 2026 a client must send a 1099-NEC only if it paid you $2,000 or more, up from $600 in 2025, so fewer forms are coming. Report every dollar on Schedule C regardless, and pay self-employment tax once net earnings reach $400.
What percentage should I set aside for 1099 taxes?
A common starting point is 25% to 30% of net income, and this calculator gives your exact figure: 29% on the $83,000 example. The share rises with income because of the federal brackets, and falls if you qualify for the 20% QBI deduction. Put the money aside as each payment arrives, not at tax time.
Can I deduct the 20% QBI deduction and the half-SE-tax deduction together?
Yes, they stack. The half-SE-tax deduction lowers your income before the brackets apply, and the QBI deduction takes up to 20% of qualified business income off after that. Neither one lowers self-employment tax itself. This calculator includes the half-SE-tax deduction but not QBI, so its federal figure is a ceiling.
What happens if I miss a quarterly payment?
The IRS charges an underpayment penalty plus interest, figured separately for each due date, so paying late in the year does not undo an early miss. You can usually avoid the penalty by paying at least 90% of the current year's tax or 100% of last year's tax through withholding and estimates, 110% if last year's AGI was over $150,000.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.