1099 tax calculator

What you owe on 1099 income

Income reported on a 1099 has no tax taken out. You owe three things on the profit, which is income minus business expenses:

• Self-employment tax of 15.3%. This covers Social Security and Medicare, both the employee and employer halves, on 92.35% of profit.
• Federal income tax. Figured with the 2026 brackets after the standard deduction and the deduction for half of your self-employment tax.
• State income tax. New Jersey and New York use the 2026 rate schedules; for another state, enter its flat rate.

How to use the "set aside" percentage

The set-aside figure is your total estimated tax divided by your 1099 income. Move that share of every client payment into a separate savings account, and use it to make quarterly estimated payments. Try the quarterly estimated tax calculator for the payment dates and the amount that avoids an underpayment penalty.

What this estimate leaves out

• The qualified business income (QBI) deduction, itemized deductions and tax credits. They can lower your tax, so the estimate errs high.
• Other income such as a W-2 job or a spouse's wages. Those change your bracket and the Social Security wage base. Use the quarterly calculator if you have them.
• New York figures are an estimate. This uses a simplified estimating schedule: the full return also adds an extra charge for higher incomes (the tax-benefit recapture).

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