🧾 1099 Tax Calculator
Your first 1099 cheque comes with no tax withheld — and two taxes waiting. Self-employment tax (Social Security and Medicare, 15.3%) applies from the first dollar of profit, and ordinary federal income tax applies on top. Together they surprise almost every new freelancer.
Enter your 1099 income and business expenses below. The calculator works out your net profit, the self-employment tax, the income tax using 2025 federal brackets, standard deduction and the simplified 20% QBI deduction — and splits the total into the four quarterly estimated payments the IRS expects.
How to use this calculator
Enter your contractor income and expenses, then press Calculate.
- Enter your total 1099 / self-employment income for the year.
- Subtract your business expenses — the tax applies to profit, not to gross income.
- Pick your filing status, and add any W-2 wages (they reduce the Social Security part of SE tax).
- Press Calculate to see both taxes, the total, and each quarterly payment.
The Two Taxes on 1099 Income
Employees split Social Security and Medicare with their employer; the self-employed pay both halves, which is the 15.3% self-employment tax. It is charged on 92.35% of net profit, the Social Security half stops at the yearly wage base ($176,100 for 2025), and half of the SE tax is deducted before income tax is worked out — small mercies this calculator applies in the right order.
Income tax then runs on what is left: the standard deduction ($15,750 single / $31,500 married filing jointly for 2025) and, for most freelancers, the qualified business income (QBI) deduction of 20% of profit come off first. The QBI rules have income limits and exceptions this estimator simplifies, and state tax is not included — treat the result as a solid planning figure, then confirm the final number with a tax professional. Finally, because nothing is withheld, the IRS expects the total in four quarterly instalments; missing them can add underpayment penalties even if you settle in full in April.
Frequently asked questions
How much tax will I pay on 1099 income?
Plan on the 15.3% self-employment tax on 92.35% of your profit, plus federal income tax at your normal brackets after the standard deduction and QBI deduction. For many freelancers the combined bill lands around 25–30% of profit — this calculator gives you a figure based on your own numbers.
What are quarterly estimated taxes?
Because no employer withholds tax from 1099 pay, you pay the IRS in four instalments during the year (form 1040-ES). Each payment is roughly a quarter of your expected total tax; this calculator shows that amount.
What is the QBI deduction?
The qualified business income deduction lets most self-employed people deduct up to 20% of their business profit before income tax. It has income limits and extra rules for some professions, so this calculator applies a simplified version and says so.
Do business expenses really matter that much?
Yes — both taxes are charged on profit, not gross income. Every legitimate expense (software, equipment, mileage, home office) reduces the profit both taxes are calculated on, which is why tracking expenses all year beats reconstructing them in April.