Nobody withholds tax from 1099 income, so the whole bill lands on you. Enter what you earned and what you spent to estimate federal income tax and self-employment tax together, and the share of every payment to put away.
By Amara Taylor · Last updated October 8, 2026 · IRS and SSA figures for tax years 2025 and 2026
| Net profit | – |
| Self-employment tax | – |
| Federal income tax on the 1099 income | – |
| Total to set aside for the year | – |
| Per quarter, if paid in four parts | – |
| Left after tax | – |
Estimate only. Federal tax only; no state tax and no qualified business income deduction.
There is no single right percentage. Your number depends on your profit, filing status and other income, and it rises as profit rises. The calculator works it out as total tax (income tax plus self-employment tax) divided by what you received.
Two parts make up the bill. Self-employment tax is 15.3% of 92.35% of your net profit, and it applies from the first dollar of profit above a very small threshold. Federal income tax is charged on the profit minus your deductions, including half of the self-employment tax, so the amount depends on your bracket. The self-employment tax calculator isolates the first part.
A single contractor receives $72,000 on 1099s in 2026, spends $12,000 on business costs and has no other income. Standard deduction.
| Step | Amount |
|---|---|
| Net profit ($72,000 − $12,000) | $60,000 |
| Self-employment tax ($60,000 × 92.35% × 15.3%) | $8,478 |
| Deductible half of that tax | −$4,239 |
| Standard deduction (single, 2026) | −$16,100 |
| Taxable income | $39,661 |
| Federal income tax (10% and 12% brackets) | $4,511 |
| Total tax | $12,989 |
| Share of income received ($12,989 ÷ $72,000) | 18.0% |
| Per quarter | $3,247 |
Out of every $1,000 this contractor receives, about $180 belongs to the IRS. Without the $12,000 of expenses the share would be about 21.6% of the $60,000 earned, which is why tracking costs matters.
Because nothing is withheld, the IRS expects tax payments during the year if you expect to owe $1,000 or more. The guide to quarterly estimated taxes lists the due dates and the safe-harbor rules that avoid an underpayment penalty.
If your income is irregular or you have several income types, a CPA or enrolled agent can set your payment amounts.
A W-2 employer withholds income tax and pays half of Social Security and Medicare for you. With 1099 income you pay all of it yourself, which is why self-employment tax is 15.3% rather than 7.65%.
Not necessarily. Payers send a Form 1099-NEC when they pay you above the IRS reporting threshold, but all your self-employment income is taxable whether or not a form arrives.
Yes, with legitimate business expenses, retirement contributions and the deduction for half of the self-employment tax. The calculator already takes the half deduction. Enter other adjustments in the field provided.
Estimate for planning and learning, not tax advice. Sources: IRS Topic 554, IRS estimated taxes, IRS Rev. Proc. 2025-32, IRS federal income tax rates and brackets, SSA contribution and benefit base. See also our editorial standards.
Last updated: October 8, 2026 · Written and tested by Amara Taylor, Content Lead, Anchor AI Tools.