1099 Tax Calculator
- Expenses
- Self-employment tax
- Income tax
- You keep
Move about 24% of every payment into a tax account and pay it in quarterly estimates.
How the 1099 tax calculation works
How much self-employment and income tax your 1099 income owes, and how much of each payment to set aside, using an effective income tax rate you enter.
Subtract business expenses first
Tax is charged on profit. $75,000 of 1099 income with $10,000 of expenses leaves $65,000.
Self-employment tax is about 14.1% of profit
The IRS method is 15.3% of 92.35% of profit, with Social Security capped at the yearly wage base. On $65,000 that's $9,184.21.
Income tax uses your effective rate
We don't apply brackets. Enter what you expect to pay for federal and state income tax as a share of income, and it is applied to profit minus half the SE tax.
Set aside the total share of each payment
Divide total tax by 1099 income to get the share to save from every invoice, then pay it in quarterly estimates.
Worked example. $75,000 of 1099 income minus $10,000 of expenses is $65,000 of profit. SE tax is $9,184.21 and income tax at 15% is $9,061.18, a total of $18,245.39. That's 24.3% of income to set aside, leaving $46,754.61.
1099 Tax FAQ
How much tax do I pay on 1099 income?
Self-employment tax of about 14.1% of profit, plus income tax at your own rate. With $65,000 of profit and a 15% effective rate, that's about $18,245, or 24% of $75,000 in income.
What is the 1099 tax rate?
There isn't one flat rate. Self-employment tax is 15.3% of 92.35% of your profit, about 14.13%, with the 12.4% Social Security part stopping at the wage base ($184,500 for 2026, $176,100 for 2025). Income tax comes on top at your own brackets, so the total share depends on your income, expenses and state.
How much should I set aside for taxes from each 1099 payment?
Work it out from your own numbers. With $75,000 of income, $10,000 of expenses and a 15% effective income tax rate, it's 24.3% of every payment. With $100,000 and no expenses at the same rate, it's 28.1%.
Do I pay tax if a client didn't send me a 1099?
Yes. The thresholds only decide when a form is sent. A client must file a 1099-NEC once it pays you $2,000 or more in a year (from 2026; it was $600 before). Payment apps send a 1099-K above $20,000 and 200 transactions under current IRS rules. All income is taxable, and SE tax applies once 92.35% of your profit reaches $400.
What expenses lower my 1099 taxes?
Ordinary and necessary business costs such as software, equipment, business mileage, a home office and professional fees. They reduce both SE tax and income tax.
Is this my exact tax bill?
No, it's an estimate for planning and isn't tax advice. Credits, deductions and filing status change your real income tax. Above $200,000 of earnings (single filers), an extra 0.9% Additional Medicare Tax also applies, which this calculator leaves out.
Sources: IRS: Self-employment tax · IRS: Self-employed individuals tax center · IRS: Estimated taxes · SSA: Contribution and benefit base · IRS: Publication 15 (2026), Social Security wage base · IRS: Instructions for Schedule SE (2025) · IRS: Instructions for Forms 1099-MISC and 1099-NEC · IRS: Understanding your Form 1099-K