1099 tax calculator
Self-employment tax plus federal and state income tax on your freelance or contractor income, by state.
- ๐บ๐ธ US federal & state rules
- 2026 federal and state rules
- See sources
Estimated tax on your 1099 income
$14,281.22
22.7% of $63,000 net profit. Set aside about $3,570 a quarter.
- Self-employment tax
- $8,901.62
- Federal income tax
- $3,827.12
- California income tax
- $1,552.48
- Kept after tax
- $48,718.78
This is an example. Enter your numbers above and press the button to see your own result.
Share of each dollar of profit
| Self-employment tax | 14.1% |
|---|---|
| Federal income tax | 6.1% |
| California tax | 2.5% |
| You keep | 77.3% |
- Uses the standard deduction and the qualified business income deduction. Health insurance, retirement contributions and other deductions would lower the federal and state amounts.
Show the math
| 1099 income | $75,000 |
|---|---|
| Business expenses | โ$12,000 |
| Net profit | $63,000 |
| Self-employment tax (15.3% of 92.35%) | $8,901.62 |
| Half of SE tax deducted | โ$4,450.81 |
| Qualified business income deduction (20%) | โ$8,489.84 |
| Standard deduction | โ$16,100 |
| Federal taxable income | $33,959 |
| Federal income tax (marginal 12%) | $3,827.12 |
| California income tax (marginal 6%) | $1,552.48 |
| Total | $14,281.22 |
What to do next
How it works
Expenses come off income to get net profit. Self-employment tax is 15.3% of 92.35% of profit, with Social Security capped at the annual wage base. Half of that tax, the standard deduction and the qualified business income deduction reduce taxable income before the federal brackets apply. Above the 2026 QBI threshold the deduction phases down, and the calculator follows the Form 8995-A steps for one business, using the service business switch and any W-2 wages you paid. State tax is estimated from your state's brackets.
If you also have W-2 wages, the calculator shows only the extra income tax the 1099 income causes, since your wages are already taxed through withholding.
Things to keep in mind
This is a planning estimate. The real return can include a home office, health insurance, retirement contributions, the earned income credit and other items that change the result.
Each state has its own page with that state's rates for contractors.
Sources
Rules applied as of 2026-01-01. See the sources below for details.
- IRS Topic no. 554 (reviewed 24-Sep-2026)Checked 2026-10-19
- IRS Publication 15 (2026), What's New, dated Dec 15, 2025Checked 2026-10-19
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026Checked 2026-10-19
Frequently asked questions
How much should I set aside for taxes as a freelancer?
25% to 30% of profit covers most people: 15.3% self-employment tax on 92.35% of profit, federal income tax at 10% to 22% for middle incomes, and state tax from zero to about 10%. Run your numbers above for a closer figure.
What is the 20% qualified business income deduction?
Sole proprietors, partners and S corporation owners can deduct 20% of qualified business income. For 2026 the full 20% applies when taxable income is $201,750 or less ($403,500 joint). Over the next $75,000 ($150,000 joint) it phases down. Past that, a specified service business such as consulting, law or health gets nothing, and any other business is limited to 50% of the W-2 wages it paid employees. A one-person business with no employees therefore loses it gradually over that range.
Do I pay self-employment tax on all 1099 income?
On net profit, after expenses, once your net earnings reach $400. Net earnings are 92.35% of profit, so the line is about $433 of profit. Rental income and investment income reported on other 1099 forms are not subject to it.
Is state tax different for 1099 income?
Most states tax it as ordinary income with the same rates as wages. The difference is that nothing is withheld, so you make estimated payments to the state as well.