1099 Tax Calculator 2026 rates
Estimated 2026 tax on your 1099 income
$10,193 total
Set aside about 20% of your 1099 profit · $2,548 per quarter
| 1099 income | $60,000 |
|---|---|
| Business expenses | −$8,000 |
| Net profit (Schedule C) | $52,000 |
| Half of self-employment tax (deduction) | −$3,674 |
| Standard deduction | −$16,100 |
| Qualified business income deduction (20%) | −$6,445 |
| Taxable income | $25,781 |
| Self-employment tax (15.3%) | $7,347 |
| Federal income tax | $2,846 |
| Still to pay for 2026 | $10,193 |
Quarterly estimated payments
| Due date (2026 tax year) | Federal (IRS) |
|---|---|
| April 15, 2026 | $2,548.27 |
| June 15, 2026 | $2,548.27 |
| September 15, 2026 | $2,548.27 |
| January 15, 2027 | $2,548.27 |
- Total tax rate: 19.6% of all income
- Top federal bracket: 12%
Estimate for tax year 2026 using the standard deduction. The 20% QBI deduction assumes a business with no employees. Some states have their own estimated-tax dates; check your state tax agency. How we calculate.
How to use the 1099 tax calculator
- Add up your 1099 income for the year from all clients and platforms (1099-NEC, 1099-MISC, 1099-K), plus any income you didn't get a form for.
- Enter your business expenses. These lower both your income tax and your self-employment tax.
- Pick your state and filing status.
- Under More options, add a W-2 job (and the tax withheld from it), children, self-employed health insurance or retirement contributions.
- Read the result: total tax, the share of your profit to set aside, and the four quarterly payments.
How 1099 income is taxed
| Step | What happens | $60,000 income, $8,000 expenses |
|---|---|---|
| 1. Net profit | Income − expenses (Schedule C) | $52,000 |
| 2. Self-employment tax | 15.3% × 92.35% of profit (Schedule SE) | $7,347 |
| 3. Adjusted gross income | Profit − half of SE tax ($3,674) | $48,326 |
| 4. Taxable income | − $16,100 standard deduction − $6,445 QBI deduction (20%) | $25,781 |
| 5. Federal income tax | 2026 brackets: 10% and 12% | $2,846 |
| 6. Total federal tax | Step 2 + Step 5 | $10,193 |
| 7. Quarterly payment | Total ÷ 4 | $2,548 |
The qualified business income (QBI) deduction lets most freelancers deduct 20% of their business income. For 2026 it is limited for taxable income above $201,750 (single) or $403,500 (married filing jointly), and there is a new $400 minimum deduction for anyone with at least $1,000 of qualified business income (IRS Rev. Proc. 2025-32).
1099 taxes by state ($60,000 income, $8,000 expenses, single, 2026)
| State | State income tax | Total tax | Set aside |
|---|---|---|---|
| Texas, Florida (no income tax) | $0 | $10,193 | 19.6% |
| Ohio | $885 | $11,079 | 21.3% |
| California | $939 | $11,132 | 21.4% |
| Pennsylvania | $1,484 | $11,677 | 22.5% |
| New York | $2,013 | $12,206 | 23.5% |
| Illinois | $2,251 | $12,444 | 23.9% |
State figures start from federal adjusted gross income; a few states (such as Pennsylvania) don't allow the half-SE-tax deduction, so their real tax is slightly higher. Cities with income taxes (such as New York City or Philadelphia) add more. Self-employed people don't pay state disability insurance premiums such as California SDI unless they opt in.
How much to set aside from each 1099 payment
| 1099 profit (single, no state tax) | Set aside |
|---|---|
| $10,000 | about 14% |
| $25,000 | about 16% |
| $50,000 | about 20% |
| $100,000 | about 22% |
| $200,000 | about 27% |
Add your state's rate on top (roughly 3% to 6% in most states). A simple habit: move that share of every client payment into a separate savings account the day it arrives, and pay your quarterly taxes from there.
Side gig plus a W-2 job
If you have a job and a 1099 side gig, your side income is taxed at your top bracket, because your wages already used up the lower brackets. Example: $50,000 of W-2 wages plus $20,000 of 1099 profit. The side gig adds about $2,826 of self-employment tax plus income tax at 12% to 22%, so set aside about 23% of the side income. Instead of quarterly payments, you can have more withheld from your paycheck with Step 4(c) of your W-4; use the W-4 calculator to get the amount.
1099 forms you might get (2026)
| Form | What it reports |
|---|---|
| 1099-NEC | Pay for your services from a business client. Required when a client pays you $2,000 or more (for payments made after 2025; it was $600). |
| 1099-MISC | Other business payments such as rents or prizes. |
| 1099-K | Payments through card processors, payment apps and online marketplaces. |
Clients must send 1099-NEC forms by January 31. Whether or not you get a form, all of your self-employment income is taxable.
Quarterly estimated tax deadlines (2026 tax year)
| Payment | Covers income earned | Due date |
|---|---|---|
| 1st | January 1 – March 31 | April 15, 2026 |
| 2nd | April 1 – May 31 | June 15, 2026 |
| 3rd | June 1 – August 31 | September 15, 2026 |
| 4th | September 1 – December 31 | January 15, 2027 |
Pay online at IRS.gov (Direct Pay or EFTPS) or with Form 1040-ES vouchers. To avoid an underpayment penalty, pay at least 90% of this year's tax or 100% of last year's (110% if your AGI was over $150,000), or owe less than $1,000 when you file.
Common deductions for freelancers
- Home office (simplified method: $5 per square foot, up to 300 square feet)
- Business mileage or actual vehicle costs
- Equipment, computers and software
- Phone and internet (business share)
- Self-employed health insurance premiums (lowers income tax)
- SEP-IRA or solo 401(k) contributions (lowers income tax)
- Half of your self-employment tax (taken automatically)
For the self-employment tax part alone, see the self-employment tax calculator.
Frequently asked questions
How much should I set aside for taxes on 1099 income?
Most freelancers should set aside 20% to 30% of their 1099 profit. For example, a single filer with $60,000 of 1099 income and $8,000 of expenses in a state with no income tax owes about $10,193 in 2026, or about 20% of profit. State income tax and higher income push it toward 30%.
How is 1099 income taxed?
1099 income is self-employment income. You pay self-employment tax (15.3% Social Security and Medicare on 92.35% of profit) plus regular federal income tax, and state income tax in most states. Nothing is withheld, so you usually pay through quarterly estimated taxes.
Do I have to pay taxes on 1099 income under $2,000?
Yes. Starting with payments made in 2026, clients only have to send a 1099-NEC when they pay you $2,000 or more (it was $600), but you must report all self-employment income, with or without a 1099. Self-employment tax applies once your net earnings reach $400.
When are quarterly estimated taxes due for 2026?
April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. If you miss a date, pay as soon as you can to limit the underpayment penalty.
What expenses can I deduct on 1099 income?
Ordinary and necessary business costs: equipment, software and subscriptions, a home office, business mileage, the business share of phone and internet, advertising, professional fees, supplies and business insurance. Expenses lower both income tax and self-employment tax.
I have a W-2 job and a 1099 side gig. How do I pay the tax?
You can make quarterly estimated payments, or ask your employer to withhold more by entering an extra amount in Step 4(c) of your Form W-4. Our W-4 calculator shows how much. Withholding counts as paid evenly through the year, which can help you avoid a penalty.
Can I avoid the underpayment penalty?
Generally yes, if you owe less than $1,000 at filing time, or if your payments and withholding cover at least 90% of this year's tax or 100% of last year's tax (110% if your adjusted gross income was over $150,000).