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TaxWren

2026 tax year · updated

1099 tax calculator for freelancers

Self-employment tax, federal income tax after the QBI deduction, how much to set aside, and your quarterly payments. Everything runs in your browser; nothing you type is sent anywhere.

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Estimated take-home

20.9% effective

For $85,000 of 1099 income · Single · Texas

$67,200

$5,600 per month

Set aside 21% of every payment

That covers federal, self-employment and state tax on this income.

Self-employment tax
$12,010
Federal income tax
$5,790
State income tax
$0
Total estimated tax
$17,800

2026 quarterly payments (Form 1040-ES)

  • Q1 · due Apr 15, 2026

    $4,450

    Covers Jan 1 – Mar 31

  • Q2 · due Jun 15, 2026

    $4,450

    Covers Apr 1 – May 31

  • Q3 · due Sep 15, 2026

    $4,450

    Covers Jun 1 – Aug 31

  • Q4 · due Jan 15, 2027

    $4,450

    Covers Sep 1 – Dec 31

What this estimate assumes
  • Standard deduction (no itemizing)
  • No employees or business property (QBI wage limits treated as zero)
  • No child tax credit
  • No local income tax
  • Excludes 2025 law deductions for tips, overtime, seniors and car loan interest

Estimate for information only, not tax advice. 2026 figures from IRS Rev. Proc. 2025-32.

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How the 2026 1099 tax is calculated

As an independent contractor you pay two federal taxes on your profit: self-employment tax, which funds Social Security and Medicare, and regular income tax. Your state may add a third.

  1. Net profit. Gross 1099 income minus business expenses (Schedule C).
  2. Self-employment tax. 15.3% on 92.35% of net profit, with the Social Security part capped at $184,500.
  3. Adjusted gross income. Profit plus any W-2 wages, minus half of self-employment tax, retirement contributions and self-employed health insurance.
  4. Taxable income. AGI minus the $16,100 standard deduction ($32,200 married filing jointly, $24,150 head of household) and the QBI deduction.
  5. Income tax. 2026 brackets from 10% to 37%, minus the child tax credit of up to $2,200 per child.

Worked example: $85,000 profit, single, Texas

Self-employment tax is $12,010. Half of it ($6,005) is deducted, leaving AGI of $78,995. After the standard deduction and a QBI deduction of $12,579, taxable income is $50,316 and federal income tax is $5,790. Total tax: $17,800, or 20.9% of profit. Texas has no state income tax.

Sources: IRS Rev. Proc. 2025-32, SSA contribution and benefit base, IRS Topic 554. See our methodology.

Frequently asked questions

How much is self-employment tax in 2026?

Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security on the first $184,500 of combined wages and self-employment earnings, plus 2.9% for Medicare with no cap. An extra 0.9% Medicare tax applies above $200,000 (single) or $250,000 (married filing jointly).

How much should I set aside for taxes as a 1099 contractor?

It depends on your profit, filing status and state. A single filer in a state with no income tax who earns $85,000 of net profit in 2026 owes about $17,800 in federal and self-employment tax, so setting aside 21% of every payment covers it. Use the calculator above for your own numbers.

Does the calculator include the QBI deduction?

Yes. The Section 199A qualified business income deduction is up to 20% of your business income, limited to 20% of taxable income. For 2026 it starts phasing out for most freelancers above $201,750 of taxable income ($403,500 married filing jointly), and a minimum deduction of $400 applies if you have at least $1,000 of qualified business income.

When are 2026 quarterly estimated taxes due?

Payments for the 2026 tax year are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027.

Is half of self-employment tax deductible?

Yes. You deduct half of your self-employment tax when calculating adjusted gross income. The calculator applies this automatically before working out federal income tax.