1099 Tax Calculator
Estimate your total tax bill on freelance, contractor, or gig income — self-employment tax plus federal income tax combined.
How total 1099 tax is estimated
Freelancers and contractors owe two separate types of federal tax on net income:
- Self-employment tax — 15.3% on 92.35% of your net income, covering Social Security and Medicare (see our dedicated Self-Employment Tax Calculator for the full breakdown).
- Federal income tax — calculated on your net income minus half of your self-employment tax (a standard above-the-line deduction) and the standard deduction for your filing status, using 2026 IRS tax brackets.
This calculator combines both to give you a single "total tax owed" figure — useful for budgeting quarterly estimated payments. It does not account for state income tax, the Qualified Business Income (QBI) deduction, or other itemized deductions, which could lower your actual bill.
Worked example
A single filer with $60,000 in net 1099 income:
| Item | Amount |
|---|---|
| Net 1099 income | $60,000.00 |
| Self-employment tax | ≈ $8,477.73 |
| Federal income tax (after SE deduction + standard deduction) | ≈ $4,070.00 |
| Total estimated tax | ≈ $12,547.73 |
| Estimated take-home | ≈ $47,452.27 |
Frequently asked questions
How to actually set aside money for 1099 taxes
Most successful freelancers use one of two systems. The first is a fixed percentage rule: transfer 25–30% of every incoming payment into a separate savings account the moment it's deposited, treating it as already spent. The second is quarterly reconciliation: estimate your total tax for the year using a calculator like this one, divide by four, and set calendar reminders for the IRS's quarterly due dates (typically mid-April, mid-June, mid-September, and mid-January).
Whichever system you choose, the biggest risk is treating gross client payments as "income you can spend." A $5,000 invoice might really only be about $3,500–$3,800 after self-employment tax and income tax — planning around the after-tax number, not the invoice number, is what keeps freelancers out of trouble come April.
1099 income vs. W-2 income: the real difference
A W-2 employee has federal tax, state tax, and FICA automatically withheld every pay period by their employer — the math in this article happens behind the scenes. A 1099 contractor receives the full invoice amount with nothing withheld, and is personally responsible for calculating and paying both self-employment tax and income tax themselves, usually via quarterly estimated payments. This is why a $70,000 W-2 salary and $70,000 in 1099 income can feel very different day-to-day, even though the eventual tax math ends up similar — the W-2 employee never sees the withheld money, while the 1099 contractor has to proactively set it aside.