1099 TaxCalculator

The amount depends on your net earnings, filing status, and deductions. As a 1099 contractor, you owe self-employment tax (15.3% on 92.35% of net earnings) plus federal income tax (10%-37%). Most freelancers pay 25-35% total. Use our calculator above for your exact estimate.

Freelancers pay approximately 7.65% more in payroll taxes because they pay both the employee and employer portions of Social Security and Medicare (15.3% total vs. 7.65%). However, freelancers can deduct the employer-equivalent half and claim business expense deductions unavailable to W-2 employees.

Financial advisors recommend setting aside 25-30% of gross income for taxes. This covers self-employment tax (15.3%), federal income tax (10-24% for most earners), and state income tax (0-13% depending on state). If you earn over $100,000 or live in a high-tax state, consider 35-40%.

The SE tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net profit. The Social Security portion caps at the $184,500 wage base; Medicare has no cap. An additional 0.9% Medicare surtax applies above $200,000 single / $250,000 married filing jointly.

The four federal quarterly deadlines for 2026 are: April 15, June 15, September 15, and January 15, 2027. Use IRS Form 1040-ES and pay via IRS Direct Pay at IRS.gov. If you expect to owe $1,000+, quarterly payments are required to avoid penalties.

Common deductions include: home office, business equipment, software subscriptions, professional development, health insurance premiums, retirement contributions (SEP-IRA, Solo 401k), business travel, and the deductible half of SE tax. These reduce both SE tax and income tax.