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2026 tax calculator

1099 Tax Calculator: Estimate What You'll Owe in 2026

If you're paid on a 1099, you owe two federal taxes: 15.3% self-employment tax and ordinary income tax. A single freelancer with $80,000 profit and no other income owes about $18,830 for 2026, which is 23.5% of profit or $4,708 a quarter. Enter your numbers for your own estimate.

Updated October 30, 2026. Federal figures only.

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How 1099 income is taxed

Clients do not withhold tax from 1099 payments. You pay self-employment tax on net profit, then ordinary federal income tax on taxable income after the standard deduction and half of the self-employment tax. The total on this page is those two taxes minus federal withholding. Additional Medicare tax, when it applies, is shown separately and is not inside the total.

Worked example: $80,000 profit, single, QBI off

Gross 1099 income $95,000, business expenses $15,000, no other income, no withholding. The headline rounds $18,830.24 to $18,830 and the quarterly amount to $4,708.

Federal estimate for a single filer
LineAmount
Profit$80,000.00
Self-employment tax$11,303.64
Half of self-employment tax$5,651.82
Standard deduction (single)$16,100.00
Taxable income$58,248.18
Federal income tax$7,526.60
Total (income tax + SE tax)$18,830.24
Effective rate on profit23.5%
One quarter of the total$4,707.56

What to set aside from each payment

The 23.5% in the example is federal only, for that one set of facts, before state tax. It is not a rate to copy onto every invoice. A practical walk-through of building a reserve is in how much to set aside for 1099 taxes. The sinking funds tracker is a place to park the cash.

Paying quarterly

Four federal installments cover the year. Estimate the payment in the quarterly estimated tax calculator. The due dates and who has to pay are also covered in quarterly taxes for self-employed and 1099 earners.

The 1099-NEC threshold is not the tax threshold

A client generally sends Form 1099-NEC when they pay you $2,000 or more in 2026. That reporting line used to be $600. You owe tax on taxable profit either way, including payments that never show up on a 1099.

State tax is not included

This estimate is federal only. State income tax, local tax and state estimated payments are extra. Credits other than the optional simplified QBI toggle are not included.

Sources

Estimates for tax year 2026, federal only. Not tax advice — confirm with your accountant.

Related

FAQ

Frequently Asked Questions

How much tax do I pay on 1099 income?
Two federal pieces: self-employment tax of 15.3% of 92.35% of net profit, plus ordinary income tax on what is left after the standard deduction and half of the self-employment tax. A single filer with $80,000 of profit and no other income owes $18,830.24 for 2026 in this estimate, about 23.5% of profit, before state tax.
Do I have to pay taxes if I didn't get a 1099?
Yes. Taxable income is taxable whether or not a client issues a form. For payments made in 2026, a payer generally files Form 1099-NEC at $2,000. That threshold tells the payer when to file. It does not tell you when you owe tax.
Is the QBI deduction included?
Only if you turn the toggle on. It applies a simplified 20% of (profit minus half of self-employment tax), capped at 20% of income after the standard deduction. It is not a full qualified business income calculation. Wage limits, specified-service phase-ins and the 2026 minimum deduction are not applied. Ask your accountant before you rely on it.
Does this include state tax?
No. The result is a federal estimate. Add your state and local tax separately.
How do I avoid an underpayment penalty?
The usual safe harbor is to pay 90% of the current year tax, or 100% of last year's tax if you had a full 12-month return (110% if last year's AGI was over $150,000, or over $75,000 if married filing separately). Withholding counts. If you expect to owe less than $1,000 after withholding, estimated payments are not required. The quarterly estimated tax calculator compares the two methods.

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