How much should I set aside from 1099 income?
It depends on your profit and filing status. For a single filer with $50,000.00 of profit and no other income, federal tax is about 19.46% of profit. Add your state income tax on top.
1099 Tax Calculator
Estimate the federal tax on your freelance or contractor income and how much to set aside each quarter.
Your numbers
Tax year 2026, US federal only. Enter yearly amounts.
1099 and other business income minus business expenses (Schedule C profit).
Wages from a job, which count toward the Social Security wage base first.
Estimate
Results update as you type.
Enter your net profit to see the estimate.
Estimate only, not tax advice. Federal tax only: state and local taxes, credits, itemized deductions and other income are not included. Check your figures with a tax professional or IRS guidance.
How tax on 1099 income works
When you are paid on a 1099, tax is usually not withheld. You owe two federal taxes on your net profit, and you may need to pay them during the year through quarterly estimated tax payments:
- Self-employment tax — Social Security and Medicare, about 15.3% of 92.35% of your profit.
- Federal income tax — at your marginal rates, after subtracting half of your self-employment tax, the standard deduction ($16,100.00 single, $32,200.00 married filing jointly for 2026) and the qualified business income (QBI) deduction of up to 20%.
Example: $75,000.00 of 1099 profit
A single freelancer with $75,000.00 of net profit and no other income owes $10,597.16 in self-employment tax. After the $16,100.00 standard deduction and a $10,720.28 QBI deduction, taxable income is $42,881.14 and federal income tax is $4,897.74.
To plan quarterly payments with the IRS safe harbor rules and due dates, use the quarterly estimated tax calculator.
Total federal tax is $15,494.90 — 20.66% of profit, or about $3,873.73 per quarter.
| Net profit | Federal tax | Share of profit | Per quarter |
|---|---|---|---|
| $25,000.00 | $4,103.09 | 16.41% | $1,025.77 |
| $50,000.00 | $9,732.07 | 19.46% | $2,433.02 |
| $75,000.00 | $15,494.90 | 20.66% | $3,873.73 |
| $100,000.00 | $22,364.55 | 22.36% | $5,591.14 |
| $150,000.00 | $37,607.63 | 25.07% | $9,401.91 |
What this estimate includes
- Included: self-employment tax, Additional Medicare Tax, the deduction for half of self-employment tax, the standard deduction, the QBI deduction below the 2026 threshold, and 2026 tax brackets for single and married filing jointly.
- Not included: state and local income tax, tax credits, itemized deductions, retirement or health insurance deductions, investment income, and QBI limits above the threshold.
If you also have a W-2 job, the calculator shows only the extra tax caused by your 1099 income, since your employer already withholds tax on your wages.
Frequently asked questions
Do I pay tax on 1099 revenue or profit?
On profit. Subtract your business expenses from what clients paid you, then enter the result as your net self-employment profit.
What is the QBI deduction?
Many freelancers and sole proprietors can deduct up to 20% of their qualified business income. Above $201,750.00 of taxable income ($403,500.00 married filing jointly), extra limits apply, so this estimate leaves the deduction out.
Is this my exact tax bill?
No. It is an estimate to help you plan. Your return may differ because of credits, other income and deductions. Check with a tax professional or IRS guidance before filing.